Set of results that bode well for SA's consumer health
Transaction Capital, which bought into We Buy Cars, is in talks to lift its stake to 75%
JSE-listed Transaction Capital's businesses are in some of SA's toughest sectors - minibus taxis, debt collection and used-car sales. But its first-half financial results this week indicated SA's economic activity is seeing a rapid recovery to pre-Covid levels, and consumers are showing unexpected resilience despite the rise in unemployment.
The group's core headline earnings, which were up 56% to R437m for the six months to December, also showed the instant success of its September acquisition of 49.9% of We Buy Cars, which added R113m to earnings amid a shift by consumers from new to used cars as incomes came under pressure and new car prices rose...