Financial services company Transaction Capital will be spending R500m on acquisitions for future growth.
The company intends acquiring 100% of Recoveries Corporation Group in Australia and majority shares in Road Cover and The Beancounter.
This will provide a strong entry point into the Australian market and the opportunity to expand geographically into a developed economy.
Recoveries Corporation is an efficient platform that Transaction Capital intends to develop and scale by applying its analytics, pricing expertise and capital to the purchase of nonperforming loan portfolios in a highly fragmented Australian debt collection market.
David Hurwitz, Transaction Capital’s CE, said: “We have applied stringent investment criteria when evaluating acquisitions, favouring quality assets to enable Transaction Capital to enhance its capabilities.” The company announced their preliminary results for the year ended September.
Transaction Capital comprises two autonomous and decentralised divisions of scale, being SA Taxi and Transaction Capital Risk Services.
The company’s headline earnings were up 17% from R458m from R393m. Transaction Capital said that they have made strong progress towards their strategic and operational objectives during the 2016 financial year, delivering pleasing results in line with expectations.
Dividends increased by 36% to 30 cents per share from 22 cents. SA Taxi grew headline earnings by 20% whilst TCRS grew headline earnings by 25%.
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