Transaction Capital is a financial services group that, through various businesses, specialises in asset-backed lending and niche risk services in South Africa. The group applies specialised credit, risk, analytics and capital management competencies to market segments perceived to be of higher risk.

Divisions include vertically integrated vehicle finance, insurance and related products business SA Taxi, as well as Transaction Capital Risk Services, a technology, online and data analytics driven provider of customer management and capital solutions.

The group’s history stems back to the a merger between several businesses and Paycorp in 2007. Today, Transaction Capital shares are listed on the Johannesburg Stock Exchange (JSE) with a market cap of R8.5 billion.

Amongst other factors, Transaction Capital attributes its strong growth performance to deep vertical integration within chosen market segments, highly defensive businesses able to withstand tough economic conditions and specialised competencies in finance and technology. The group further highlights a focused acquisition strategy, strong balance sheet and sound capital rationing as key factors for success.

On 22 November 2016, the company announced one of its biggest moves to date, deploying R500 million to buy 100% of Australian company Recoveries Corporation Group and further acquisitions of local businesses Roadcover and the Beancounter. Recoveries Corporation, a provider of consumer customer management solutions, provides a strong entry point into Australia and an opportunity to expand geographically. Road Cover offers monthly subscriptions for sale to clients to access legal and administration services associated with vehicle insurance, and will be integrated into the existing services offered by Transaction Capital. Meanwhile, Beancounter provides full outsourced accounting, payroll and tax services, giving the group exposure to the specialist, cloud accounting services market in South Africa.

These acquisitions come on the back of some solid performance for Transaction Capital in the 2016 financial year. SA Taxi increased headline earnings by 20% to R249 million and Transaction Capital Risk Services by 25% to R168 million. Overall, the company recorded an earnings increase of 17% to R458 million. Number of clients continues to increase as the company offers bespoke solutions to a niche market, and the company is continuing to buy into the diversification of its product portfolio and geographical footprint. Transaction Capital share price has accordingly strengthened significantly on the JSE over the past few years.

Transaction Capital share price has enjoyed steady gains on the live JSE stocks chart, rising from R4.75 in 2014 to R14.76 by November 2016. Investors have rallied
to buy Transaction Capital shares following the announcement of the latest acquisitions, indicating confidence in this exciting and unique company.Investment analysts forecast that Transaction Capital shares have the potential to climb further, making them a mouth-watering prospect for JSE investors.

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