WeBuyCars owner Transaction Capital plunges 17% after R1.9bn loss | Business

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Shares of SA's biggest taxi financier and Transaction Capital plunged another 17% on Wednesday, after it delivered a profit fall that was worse than guided. | News24_Business

CEO David Hurwitz said during an investor presentation on Wednesday that the company had seen a"cyclical deterioration" in the used vehicle markets, but the company has since adjusted its stock to match current trading conditions.

Hurwitz saying despite an expectation of muted full-year performance, WeBuyCars was still gaining market share.Pressure on taxi operators has also prompted the company to put its SA Taxi Auto repairs business up for sale. It has restated this business as a"discontinued operation", with the company restating its prior period results to reflect this. This resulted in lower headline earnings for the previous period, narrowing the profit slump.

Transaction Capital also took a R1.9 billion restructuring hit in its 2023 year. The company has decided to account for all the once-off restructuring costs immediately, and it needs to account for lower levels of future revenue and profitability, which requires adjustments to provisions.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features.

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