The financial services group saw headline earnings increase from 405 million rand for the 2012 year to 545 million rand in 2013.
“We are particularly pleased with Transaction Capital’s progress in a very challenging environment. The financial performance was sound and the complexity and risk of the group has been significantly reduced by the disposals, which have caused us to reduce the board and executive office costs, while implementing an integrated succession process and to consider a significant distribution of the proceeds to shareholders,” said [DATA TCP:Transaction Capital Limited]chief executive Mark Lamberti.
“In its first full year as a public company, Transaction Capital achieved the strategic, operational and financial objectives envisaged on the listing of the group.”
Non-interest revenue rose 15.1 per cent from 1.6 million rand in 2012 to 1.9 million rand in 2013 and net asset value per share increased by 17.5 per cent to 637.7 cents.
Profit before tax was up 28.3 per cent from 484,000 rand in 2012 to 621,000 rand in 2013, profit from continuing operations increased from 388,000 rand to 521,000 rand and diluted earnings per share from continuing operations rose 19.1 per cent from 69.1 cents to 82.3 cents.
“Under new but experienced leadership, Transaction Capital is a well-capitalised group, comprising SA Taxi and Rand Trust in the Asset Backed SME finance division, and MBD Credit Solutions and Principa in the Credit Services division,” said Lamberti.
“These subsidiaries epitomise the unique characteristics necessary to sustain leadership within their chosen niches and provide a solid platform for the organic and acquisitive growth of earnings and returns. The early 2014 performance of Transaction Capital is in line with the guidance on revenue and profit growth rates provided on listing, albeit off a lower base.”
Transactional Capital also announced a number of executive changes with Mark Lamberti resigning as chief executive officer to become non-executive chairman of the board. David Hurwitz will take over from him and Mark Herskovits will be appointed as chief financial officer. The changes will take effect from 15 January 2014.
Christopher Seabrooke will step down as independent non-executive chairman to become lead independent non-executive director, while Jonathan Jawno will stand down as deputy chief executive officer to become an executive director. Steven Kark and Cedric Ntumba resigned from the board with immediate effect.