Wrap Text
Provisional summarised consolidated financial results of Transaction Capital for the year ended 30 September 2013
Transaction Capital Limited
Registration number: 2002/031730/06
(Incorporated in the Republic of South Africa)
("Transaction Capital" or "the company" or "the group")
JSE share code: TCP
ISIN code: ZAE000167391
Tax reference number: 9466/298/15/6
TRANSACTION CAPITAL
PROVISIONAL SUMMARISED CONSOLIDATED FINANCIAL RESULTS OF TRANSACTION CAPITAL LIMITED
FOR THE YEAR ENDED 30 SEPTEMBER 2013
HIGHLIGHTS
Headline earnings
up 34.6% to R545 million
Headline earnings per share
up19.8% to 93.4 cents
Net asset value per share
up17.5% to 637.7 cents
Weighted average number of shares
up 12.4% to 583.6 million
Return on assets
up 15.8% to 4.4%
Return on equity 17.4%
18.6% achieved in 2012
Final dividend increased 33.3% to 12 cents per share
Distribution of 200 cents per share under consideration
COMMENTARY
OVERVIEW
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. In addition, the disposal of Paycorp and Bayport (the latter still subject to approval) has substantially increased tangible net asset value
and reduced the range and complexity of risks for stakeholders.
FINANCIAL HIGHLIGHTS
- headline earnings increased 34.6% to R545 million
- weighted average number of shares increased 12.4% to R583.6 million
- headline earnings per share increased 19.8% to 93.4 cents
- net asset value per share increased 17.5% to 637.7 cents
- return on average assets increased 15.8% to 4.4%
- return on average equity of 17.4% was achieved, down from 18.6% in 2012
- continued headline earnings increased 33.7% to R480 million, and continued headline earnings per share grew 19.1% to 82.3 cents, driven by
- total income increasing 18.3% to R4 593 million
- non-interest revenue increasing 15.1% to R1 910 million
- gross loans and advances growing 19.8% to R11 697 million
- final dividend declared per share increased 33.3% to 12 cents per share
- distribution of 200 cents per share under consideration by the board
ENVIRONMENT
Despite decade long interest rate lows, and a continued migration of lower income consumers to middle income segments, the South African
consumer economy softened throughout the year as employment and real wage growth slowed, exchange rate related inflation eroded disposable
income, labour unrest escalated, and lenders decreased the growth rate of unsecured credit extension to generally over indebted lower and middle
income consumers.
The financial services environment remained competitive as participants pursued market share, technological advantage and non-interest and
transactional revenues. As predicted at the half year, major lenders reported deteriorating credit metrics and, in keeping with their commitment to
regulatory compliance and responsible market conduct, implemented more conservative credit, origination, collection, provision and write-off
policies.
Regulatory uncertainty abated slightly as certain policies were announced and the authorities moderated initial positions in response to established
lender's lobbying and self-regulation. Poor enforcement by regulators, and unchecked abuse by opportunistic lenders, debt counsellors and other
intermediaries, remains a threat to unsophisticated users and compliant operators throughout the financial services sector.
FINANCIAL PERFORMANCE
Transaction Capital's 34.6% growth of headline earnings to R545 million was achieved through a combination of revenue growth and cost
containment in all divisions.
Net interest income grew 28.7% to R1 735 million, with a net interest margin of 16.0% unchanged. The reduction in cost of debt due to higher
equity levels was neutralised by a lower yield on gross loans and advances, reflective of the stressed South African consumer credit economy.
The group's credit loss ratio increased from 8.8% to 9.6%, due to the increased weighting of unsecured loans and advances within the loan
portfolio, which has a higher credit loss ratio associated with these loans. Encouragingly, the credit loss ratio of asset-backed lending declined from
the prior year's levels.
Non-interest revenue grew 15.1% to R1 910 million due to the 19.8% growth in gross loans and advances, which drove fee, commission and
insurance related income.
The cost-to-income ratio improved from 59.3% to 54.6% as a result of excellent cost control across the group and an increased weighting towards
the lower cost-to-income ratio lending operations. Total expenses grew 11.5% to R1 990 million as both assets in the lending divisions and revenue
generating activities in the services divisions expanded, with a concomitant investment in human capital and technology.
With a capital adequacy ratio of 41.6%, Transaction Capital is well positioned to take advantage of, and fund growth opportunities. Since the start
of the financial year 21 institutions invested more than R5.6 billion of debt capital.
OPERATIONAL HIGHLIGHTS
Asset-backed Lending - SA Taxi and Rand Trust
The division increased headline earnings 22.6% to R163 million from a 16.9% growth in gross loans and advances to R5.9 billion.
SA Taxi is a specialist financier of mini-bus taxis to SMEs. Growth in net interest margin was driven by increased loan sizes due to inflationary
increases in the cost price of the new vehicles, and by an improved net interest margin of 11.8% resulting from the reduced cost of debt.
Credit quality improved due to more stringent credit scoring, improved collections and an origination strategy biased increasingly towards premium
vehicles, resulting in lower credit losses of 5.4%, compared to 5.6% a year ago. The rate of refinancing repossessed vehicles has slowed as more
comprehensive refurbishments were required to ensure the requisite quality. This has resulted in an increase in the number of repossessed vehicles
causing the non-performing loan ("NPL") ratio to increase from 31.9% to 36.4%. NPL coverage was concomitantly strengthened from 15.3% to
15.6%, as was provision coverage from 4.9% to 5.7%. Operational efficiencies are accruing from the relocation of SA Taxi's businesses to a single
site.
Rand Trust provides receivables discounting and commercial debtor management to SMEs. Rand Trust invested heavily in its distribution channel,
marketing mechanisms and client offering to create scale, diversify its client base, increase client's utilisation of available facilities and improve
retention of long-term clients. The result was a 56.1% growth in loans and advances and a 33.7% growth in net interest income.
Unsecured Lending - Bayport
Bayport is a provider of unsecured personal loans to middle market consumers. The division increased headline earnings 19.9% to R199 million
from a 23.5% growth in gross loans and advances to R5.8 billion.
Vintage curves from the first half of the 2013 financial year revealed a deterioration of credit quality. This triggered a further tightening of lending
criteria resulting in lower disbursement levels for the year. Growth in gross loans and advances slowed to 23.5%, compared to 54.6% in 2012,
accelerating the seasoning of the book. This, together with the slow-down in the late stage collection process for the year due to the implementation
of system improvements, resulted in the adverse movement in the NPL ratio to 35.1%. This was addressed through an improvement in the NPL
coverage from 54.3% to 64.2% and the provision coverage from 16.6% to 22.5%.
Bayport will remain conservative in targeting client and employer segments while actively monitoring credit quality, loan size (average at origination:
R14 308) and term (average at origination: 47 months).
On 23 October 2013 Transaction Capital announced the sale of its 82.65% interest in Bayport to Bayport Management Limited, subject to various
conditions and approvals. The transaction price of R1 330 million was 6.7 times earnings to September 2013, providing a 32.6% IRR excluding
gearing benefits. The effective date of the disposal is expected to be before the end of 2013. As the transaction was approved by the board
subsequent to the financial year end and not all conditions precedent have been met, Bayport is accounted for as a continuing operation.
Credit Services - MBD Credit Solutions and Principa Decisions
The division increased headline earnings 8.0% to R95 million.
MBD CS collects distressed consumer and commercial debt as agent for credit providers and as principal on acquired book debts. Earnings grew as
a result of modest revenue growth enhanced by stringent cost management. Book acquisitions of R118.6 million in the current financial year and
acquisitions of R42.6 million late in the last quarter of FY12, necessitated an increase in MBD CS's facilities and personnel in an expanded
Johannesburg CBD call centre, and the optimisation of existing collection capacity and strategies. It is expected that the benefits of the investment in
purchased book debts together with MBD CS's augmented collections capability will be realised during the 2014 financial year.
Principa Decisions provides credit risk consultancy services and software. A weakening local credit consumer economy has had a negative effect on
Principa Decision's traditional revenue generation abilities. The Qarar joint venture with Simah in the Middle East however is now fully operational
with strong revenues being earned during the last half of 2013.
Payment Services - Paycorp (Discontinued operation)
Paycorp comprises ATM Solutions, which owns, installs, operates and maintains a fleet of off bank premise ATMs and EFT terminals, and DrawCard,
a prepaid card issuer. Earnings grew 8.7% to R50 million.
A combination of the active ATM fleet growing 6.2% to 4 651 machines, continued relocation of underperforming ATMs to better sites, and high
network uptime levels, yielded a 24.5% increase in ATM disbursements. Payment based income grew 11.2% supressed by slightly increased
vandalism levels and fee structure pressure from banking partners.
On 6 August 2013 Transaction Capital entered into an agreement to dispose of 100% of Paycorp to a company owned by funds of emerging
market private equity firm Actis, with minority ownership by the Paycorp management team. The transaction price of R937 million was 18.7 times
earnings to September 2013, providing an 18.2% IRR excluding gearing benefits. All conditions precedent were fulfilled on 31 October 2013 with
the effective date of the transaction being 1 November 2013, when the net sale proceeds were received by Transaction Capital. Paycorp is thus
accounted for as a non-current asset held for sale in the 2013 financial year, with the impact of this classification contributing an additional R15
million to the discontinued operations headline earnings.
USE OF PROCEEDS
It is the intention of the board to retain a sufficient portion of the proceeds arising from the disposal of Paycorp and Bayport to optimise the equity
and debt structures in the continuing subsidiaries, fund organic growth and facilitate an underpin for significant acquisitive activity in the medium
term.
Subject to the closure of the Bayport transaction expected by the end of January 2014, and having taken full account of the medium term
requirements of the group as described above, it is the further intention of the board to consider declaring a distribution of 200 cents per share,
absent any unforeseen capital requirements arising in the interim. This is not a commitment and is intended only to provide shareholders with the
board's deliberations on the use of proceeds.
RESTRUCTURE OF THE BOARD AND GROUP OFFICE
Coincident with, and allied to, the expiry of the chief executive's service contract, the board and group office has been restructured and resized to
accommodate the requirements of the smaller Transaction Capital group.
Effective 26th November 2013:
- Steven Kark and Cedric Ntumba have tendered their resignations
With effect from the 15th January 2014:
- Christopher Seabrooke will stand down as independent non-executive chairman to become lead independent non-executive director
- Mark Lamberti will resign as chief executive officer to become non-executive chairman of the board
- David Hurwitz will be appointed chief executive officer
- Mark Herskovits will be appointed to the board as chief financial officer
- The nature, chairmanship and membership of the board's sub-committees will be altered to ensure the optimal deployment of director's
independence and capabilities
- Jonathan Jawno will stand down as deputy chief executive officer to become an executive director while Michael Mendelowitz and Roberto Rossi
will retain their positions as chief investment officer and chief legal officer respectively
All directors' fees or compensation will be altered concomitant with their new responsibilities and all group office functions have either been devolved
to subsidiaries or reduced to support the smaller portfolio.
The above changes will position Transaction Capital with a board of 11 directors (six non-executive, five of whom are independent) and a
substantially reduced group office, both resized to meet the necessary governance, leadership and affordability requirements, without compromising
the strategy espoused at the time of listing.
STRATEGY AND PROSPECTS
Transaction Capital remains committed to investing in the organic and acquisitive growth of non-deposit taking niched financial services businesses,
with a view to rendering acceptable risk adjusted returns to shareholders.
Subsequent to the disposals mentioned above, Transaction Capital will comprise SA Taxi and Rand Trust in the asset-backed SME finance division
and MBD Credit Solutions and Principa in the credit services division. These subsidiaries epitomise the unique characteristics necessary to sustain
leadership within their chosen niches and, fuelled by the retained proceeds of the recent disposals, provide a solid platform for the organic and
acquisitive growth of earnings and returns.
Notwithstanding the challenging environment, 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.
DIVIDEND DECLARATION
In line with the stated dividend policy of 4 to 5 times cover and following the interim dividend of 9 cents per share, the board has declared a final
gross cash dividend of 12 cents per share for the six months ended 30 September 2013, to those members recorded in the register of members on
the record date, appearing below. The dividend is declared out of income reserves. The company will utilise STC credits to the value of 11.1 cents
per share. A dividend withholding tax of 15% will be applicable to the remaining balance of 0.9 cents per share to all shareholders that are not
exempt, resulting in a net dividend of 11.865 cents per share. The company will have no remaining STC credits available. The salient features
applicable to the final dividend are as follows:
Issued shares as at declaration date 582 581 177
Declaration date Tuesday, 26 November 2013
Last day to trade cum dividend Thursday, 12 December 2013
First day to trade ex dividend Friday, 13 December 2013
Record date Friday, 20 December 2013
Payment date Monday, 23 December 2013
Share certificates may not be dematerialised or rematerialised between Friday, 13 December 2013, and Friday, 20 December 2013, both dates
inclusive.
On Monday, 23 December 2013, the cash dividend will be electronically transferred to the bank accounts of all certificated shareholders where this
facility is available. Where electronic fund transfer is not available or desired, cheques dated 23 December 2013 will be posted on that date.
Shareholders who have dematerialised their share certificates will have their accounts at their CSDP or broker credited on Monday, 23 December
2013.
On behalf of the board of directors:
M J Lamberti D M Hurwitz
Chief executive officer Chief financial officer
26 November 2013
AUDITOR'S OPINION
Deloitte & Touche (external auditors) have audited the provisional summarised consolidated financial statements and issued an unmodified audit
opinion thereon. A copy of this report is available for inspection at the registered office of the company.
The group's external auditors have issued their unmodified audit opinion on the group's financial statements for the year ended 30 September 2013.
The audit was performed in accordance with International Standards on Auditing.
These provisional summarised consolidated financial statements have been derived from the group audited annual financial statements and are
consistent in all material respects with the annual financial statements. A copy of the external audit report is available for inspection at the
company's registered office. Any reference to future financial performance and operational information included in this announcement has not
been audited or reported on by the group's external auditors.
The auditor's report does not necessarily cover all of the information contained in this announcement. Shareholders are therefore advised that in
order to obtain a full understanding of the nature of the auditor's work they should obtain a copy of that report together with the accompanying
financial information from the registered office of the company.
BASIS FOR PREPARATION
The provisional summarised consolidated financial statements of the group have been prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financing Reporting Standards ("IFRS"), the SAICA Financial Reporting Guides, as issued
by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, the JSE Limited Listings
Requirements, the going concern principle and the requirements of the South African Companies Act, 71 of 2008. The provisional summarised
consolidated financial statements are presented in accordance with IAS 34 and the Listings Requirements.
The accounting policies and their application are in terms of IFRS and are consistent, in all material respects, with those detailed in Transaction
Capital's prior year annual financial statements, except for the adoption of new or revised accounting standards, interpretations and circulars which
are described below.
New accounting standards
During the year the group elected to early adopt IFRS 10, Consolidated Financial Statements, IFRS 11, Joint Arrangements, IAS 27 (as revised in
2011), Separate Financial Statements, IAS 28 (as revised in 2011), Investments in Associates and Joint Ventures and IFRS 12, Disclosure of Interests
in Other Entities. The group believes that adoption of these standards will improve the disclosure of the nature and risks associated with interests in
other entities. The major change as a result of the early adoption is the recognition of insurance cell captives as available-for-sale assets at fair value
through equity. These standards have been applied retrospectively.
These summarised financial results have been prepared under the supervision of D M Hurwitz, chief financial officer.
SUBSEQUENT EVENTS
The sale of Paycorp became effective on 1 November 2013.
The group announced, on 23 October 2013, its intention to dispose of its interest in Bayport subject to the following remaining material conditions
precedent; approval from the Competition Commission and approval from the shareholders of Transaction Capital.
No other events which would have a material impact on either the financial position or operating results of the group have taken place between 30
September 2013 and the date of the release of this report.
Summarised consolidated statement of financial position
at 30 September 2013
2013 2012
Audited Audited Change
Rm Rm %
Assets
Cash and cash equivalents 673 1 101 (38.9)
Tax receivables 64 28 128.6
Trade and other receivables 505 410 23.2
Inventories 85 203 (58.1)
Loans and advances 10 232 8 780 16.5
Purchased book debts 420 347 21.0
Other loans receivable 280 228 22.8
Equity accounted investments 4 - 100.0
Other investments 481 316 52.2
Intangible assets 21 36 (41.7)
Property and equipment 96 308 (68.8)
Goodwill 594 927 (35.9)
Deferred tax assets 107 130 (17.7)
Non-current assets classified as held for sale 769 - 100.0
Total assets 14 331 12 814 11.8
Liabilities
Bank overdrafts 71 158 (55.1)
Tax payables 2 13 (84.6)
Trade and other payables 386 827 (53.3)
Provisions 2 3 (33.3)
Interest-bearing liabilities 9 601 8 353 14.9
Senior debt 7 470 6 876 8.6
Subordinated debt 2 131 1 477 44.3
Deferred tax liabilities 194 156 24.4
Liabilities directly associated with non-current assets classified as held for sale 180 - 100.0
Total liabilities 10 436 9 510 9.7
Equity
Ordinary share capital and premium 1 779 1 792 (0.7)
Other reserves 385 268 43.7
Retained earnings 1 551 1 112 39.5
Equity attributable to ordinary equity holders of the parent 3 715 3 172 17.1
Non-controlling interests 180 132 36.4
Total equity 3 895 3 304 17.9
Total equity and liabilities 14 331 12 814 11.8
Summarised consolidated income statement
for the year ended 30 September 2013
2013 2012
Audited Audited Change
Rm Rm %
Interest and other similar income 2 683 2 222 20.7
Interest and other similar expense (948) (874) 8.5
Net interest income 1 735 1 348 28.7
Impairment of loans and advances (1 038) (740) 40.3
Risk adjusted net interest income 697 608 14.6
Non-interest revenue 1 910 1 660 15.1
Operating costs (1 990) (1 784) 11.5
Equity accounted earnings 4 - 100.0
Profit before tax 621 484 28.3
Income tax expense (100) (96) 4.2
Profit from continuing operations 521 388 34.3
Profit from discontinued operations 65 46 41.3
Profit for the year 586 434 35.0
Attributable to ordinary equity holders of the parent 544 401 35.7
Attributable to non-controlling equity holders 42 33 28.7
Basic earnings per share 93.2 77.3 20.6
Diluted basic earnings per share 93.2 77.3 20.6
Headline and diluted headline earnings per share 93.4 78.0 19.8
Headline and diluted headline earnings per share - continuing operations 82.3 69.1 19.1
Headline and diluted headline earnings per share - discontinued operations 11.1 8.9 24.7
Summarised consolidated statement of comprehensive income
for the year ended 30 September 2013
2013 2012
Audited Audited Change
Rm Rm %
Profit for the year 586 434 35.0
Other comprehensive income 122 149 (18.1)
Fair value gains/(losses) arising during the year on cash flow hedge 10 (6)
Amount removed from other comprehensive income and recognised in profit
and loss - 4
Fair value gains arising on valuation of available-for-sale investment 115 149
Deferred tax (3) 2
Total comprehensive income for the year 708 583 21.4
Attributable to ordinary equity holders of the parent 659 523 26.0
Attributable to non-controlling equity holders 49 60 (18.3)
Summarised headline earnings reconciliation
for the year ended 30 September 2013
2013 2012
Audited Audited Change
Rm Rm %
Profit attributable to ordinary equity holders of the parent 544 401 35.7
Headline earnings adjustable items added
Losses on disposal of properties and equipment - 1 (100.0)
Impairment of assets - 3 (100.0)
Impairment of goodwill 1 - 100.0
Headline earnings 545 405 34.6
Summarised consolidated statement of changes in equity
for the year ended 30 September 2013
Share Ordinary Non-
capital and Other Retained shareholders controlling Total
premium reserves earnings equity interests equity
Balance at 30 September 2011 908 146 731 1 785 91 1 876
Total comprehensive income - 122 401 523 60 583
Profit for the year - - 401 401 33 434
Other comprehensive income for the year - 122 - 122 27 149
Dividends paid - - - - (4) (4)
Transactions with non-controlling equity holders - - (20) (20) (15) (35)
Issue of shares 913 - - 913 - 913
Repurchase of shares (11) - - (11) - (11)
Share issue costs (18) - - (18) - (18)
Balance at 30 September 2012 1 792 268 1 112 3 172 132 3 304
Total comprehensive income - 115 544 659 49 708
Profit for the year - - 544 544 42 586
Other comprehensive income for the year - 115 - 115 7 122
Dividends paid - - (105) (105) - (105)
Transactions with non-controlling equity holders - - - - (1) (1)
Issue of share appreciation rights - 2 - 2 - 2
Repurchase of shares (13) - - (13) - (13)
Balance at 30 September 2013 1 779 385 1 551 3 715 180 3 895
Summarised consolidated statement of cash flows
for the year ended 30 September 2013
2013 2012
Audited Audited Change
Rm Rm %
Net cash utilised by operating activities (31) (372) 91.7
Net cash utilised by investing activities (165) (4) (4 025.0)
Net cash (utilised)/raised by financing activities (13) 849 (101.5)
Net increase/(decrease) in cash and cash equivalents (209) 473 (155.4)
Cash and cash equivalents at beginning of the year 943 470 100.6
Cash and cash equivalents at beginning of the year relating to discontinued
operations (132) - (100.0)
Cash and cash equivalents at beginning of the year from continuing operations 811 470 71.5
Cash and cash equivalents at end of year 602 943 (36.2)
Summarised segment report
Group executive Group before Payment services -
Asset-backed lending Credit services office unsecured lending Unsecured lending Group - continuing discontinued Group
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited
Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Summarised income statement
for the year ended 30 September 2013
Net interest income 667 552 (1) 4 20 (17) 686 539 1 049 809 1 735 1 348 - - 1 735 1 348
Impairment of loans and advances (281) (245) (2) (1) - - (283) (246) (755) (494) (1 038) (740) - - (1 038) (740)
Non-interest revenue 218 191 790 769 15 (25) 1 023 935 887 724 1 910 1 660 - - 1 910 1 660
Total operating costs (403) (333) (666) (652) (2) 6 (1 071) (980) (919) (805) (1 990) (1 784) - - (1 990) (1 784)
Equity accounted earnings - - 4 - - - 4 - - - 4 - - - 4 -
Profit before tax 200 165 125 120 33 (36) 359 249 262 234 621 484 - - 621 484
Impact of classification to held for sale - - - - - - - - - - - - 15 - 15 -
Profit from discontinued operations - - - - - - - - - - - - 50 46 50 46
Headline earnings 163 133 95 88 23 (28) 282 193 199 166 480 359 - - 480 359
Total headline earnings 163 133 95 88 23 (28) 282 193 199 166 480 359 65 46 545 405
Return on average assets (ROA) (%) 2.7 2.5 12.2 12.4 4.3 4.6 3.9 3.4 12.3 12.1 4.4 3.8
Return on average equity (ROE) (%) 32.3 39.3 27.3 28.8 17.7 23.2 15.3 16.4 30.3 30.5 17.4 18.6
Services: EBITDA 134 125 134 125 134 125 - - 134 125
Net interest margin (%) 12.3 12.1 19.6 21.2 16.0 16.0 16.0 16.0
Cost-to-income ratio (%) 45.5 44.8 84.4 84.4 47.5 52.5 54.6 59.3 86.6 86.3 54.6 59.3
Average cost of borrowing (%) 10.1 11.2 8.2 8.2 9.9 10.3 10.3 11.0 10.3 9.6 10.3 11.0
Credit loss ratio (%) 5.2 5.4 14.1 13.0 9.6 8.8 9.6 8.8
ATM disbursements (Rb) 35.6 28.6
Number of employees 564 555 3 039 2 518 70 56 3 673 3 129 1 326 1 179 4 999 4 308 387 389 5 386 4 697
Group executive Group before Payment services -
Asset-backed lending Credit services office unsecured lending Unsecured lending Group - continuing discontinued Group
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited
Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Summarised statement of financial position
at 30 September 2013
Assets *
Cash and cash equivalents 226 528 32 57 36 92 294 677 379 270 673 947 - 154 673 1 101
Loans and advances 5 577 4 801 47 59 - - 5 624 4 860 4 608 3 920 10 232 8 780 - - 10 232 8 780
Purchased book debts - - 420 347 - - 420 347 - - 420 347 - - 420 347
Other investments 175 57 - - - - 175 57 305 259 481 316 - - 481 316
Non-current assets classified as held for sale - - - - 769 - 769 - - - 769 - - - 769 -
Other assets and receivables 453 388 234 255 300 514 987 1 157 770 810 1 756 1 967 - 303 1 756 2 270
Total assets 6 431 5 774 733 718 1 105 606 8 269 7 098 6 062 5 259 14 331 12 357 - 457 14 331 12 814
Liabilities **
Bank overdrafts 71 137 - - - - 71 137 - - 71 137 - 21 71 158
Interest-bearing liabilities 4 398 4 468 151 140 922 449 5 471 5 057 4 129 3 229 9 601 8 286 - 67 9 601 8 353
Senior debt 3 947 4 103 151 140 - - 4 098 4 243 3 371 2 566 7 470 6 809 - 67 7 470 6 876
Subordinated debt 451 365 - - 922 449 1 373 814 758 663 2 131 1 477 - - 2 131 1 477
Group 1 078 410 - 22 (1 295) (901) (217) (469) 217 469 - - - - - -
Liabilities directly associated with non-current
assets classified as held for sale 180 - 180 - 180 - 180 -
Other liabilities and payables 185 267 204 226 71 47 460 540 125 254 584 794 - 205 584 999
Total liabilities 5 732 5 282 355 388 (122) (405) 5 965 5 265 4 471 3 952 10 436 9 317 - 293 10 436 9 510
Total equity 699 492 378 330 1 227 1 011 2 304 1 833 1 591 1 307 3 895 3 140 - 164 3 895 3 304
Capital adequacy ratio (%) 31.7 23.0 48.7 47.9 40.5 43.9 40.1 35.7 53.4 54.0 41.6 35.7
Provision coverage (%) 5.5 4.7 22.5 16.6 13.9 10.5 13.9 10.5
Non-performing loan ratio (%) 34.3 30.7 35.1 30.6 34.5 30.4 34.5 30.4
Non-performing loan coverage (%) 15.9 15.5 64.2 54.3 40.4 34.4 40.4 34.4
Assets under management (Rb) 25.8 23.2
Number of collection agents 2 744 1 983
Number of active ATMs 4 651 4 381
* Assets classified as held for sale comprises R418 million of Paycorp assets, R332 million of goodwill related to Paycorp and R19 million increase in assets due to the held for sale depreciation
and amortisation reversal required.
** Liabilities held for sale comprise R247 million of Paycorp liabilities, less R67 million of intergroup loans which eliminates on consolidation.
ADMINISTRATION
Transaction Capital Limited
Registration number: 2002/031730/06
(Incorporated in the Republic of South Africa)
("Transaction Capital" or "the company" or "the group")
JSE share code: TCP
ISIN code: ZAE000167391
Tax reference number: 9466/298/15/6
Registered office
Sandhavon Office Park, 14 Pongola Crescent,
Eastgate Ext.17, Sandton 2199
PO Box 41888, Craighall, 2024,
Republic of South Africa
Tel: +27 (0) 11 531 5485
Fax +27 (0) 11 262 3713
Directors
Christopher Seabrooke (chairman)*, Mark Lamberti (chief executive officer), David Hurwitz (chief financial officer), Jonathan Jawno,
Phumzile Langeni*, Michael Mendelowitz, Cedric Ntumba*, Roberto Rossi, Dumisani Tabata*, David Woollam*, Shaun Zagnoev*, Steven Kark**
(re-classified as non-executive from 1 November 2013) (*Independent non-executive) (**Non-executive)
Brenda Madumise* (resigned 29 April 2013)
Company secretary
PJ Katzenellenbogen
Auditors
Deloitte & Touche
Sponsor
Deutsche Securities (SA) Proprietary Limited
Transfer secretaries
Computershare Investor Services Proprietary Limited,
70 Marshall Street,
Johannesburg, 2001
Date: 26/11/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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