Transaction Capital, the South African financial-services firm that surprised with a profit warning in March, plunged the most in almost two months after reporting a record loss.
The company posted a loss of R1.39 billion in the six months through March, compared with a R518 million profit a year ago, it said in a statement on Wednesday.
Transaction Capital is restructuring its SA Taxi unit, the main source of the firm’s rising impairments, and said it’s comfortable that its balance sheet “remains sufficiently capitalised and debt covenant levels remain intact.”
“Although highly disappointing, these adjustments are necessary to set a solid base for SA Taxi to resume future growth,” Chief Executive Officer David Hurwitz said in the statement. The company expects the SA Taxi business “should settle into sustainable and predictable profitability during the 2024 financial year.”
Transaction Capital has plunged 68% this year, making it the worst-performing stock in
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