Wrap Text
Provisional audited summarised consolidated financial results for the year ended 30 September 2014
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 AUDITED SUMMARISED CONSOLIDATED FINANCIAL RESULTS OF TRANSACTION CAPITAL LIMITED
FOR THE YEAR ENDED 30 SEPTEMBER 2014
HIGHLIGHTS
- Continuing headline earnings per share up 18% to 57.3 cents
- Continuing headline earnings up 17% to R330 million
- Continuing EBITDA up 18% to R159 million (Services division)
- Continuing gross loans & advances up 14% to R6 737 million
- Non-performing loan ratio improves by 11% to 25.7%
- Credit loss ratio stable at 5.2%
- After the capital distribution of 210 cents per share net asset value per share down 18% to 520.2 cents
- Capital adequacy ratio up 19% to 49.5%
- Total dividend for the year of 16 cents per share. Final dividend of 10 cents per share
- Reduced dividend cover of 3.6 times on continuing headline earnings per share
COMMENTARY
OVERVIEW
During the 2014 financial year Transaction Capital operated a portfolio of assets substantially different from those reported on at the end of the
2013 financial year. The change in portfolio, occasioned by the sale of our unsecured lending and payment services businesses, was a response to
emergent opportunities to generate significant returns and realise value for shareholders while reducing the complexity and risk facing the group.
Although announced at the 2013 year-end results presentation, the sale of Paycorp Holdings Proprietary Limited ("Paycorp") only became effective
on 1 November 2013, and the sale of Bayport Financial Services 2010 Proprietary Limited ("Bayport") on 31 December 2013, with total proceeds
of approximately R2.3 billion received during the first four months of 2014. On 17 March 2014 Transaction Capital distributed 210 cents per share
or R1.2 billion to shareholders, resulting in an improved and more efficient capital structure but a reduced net asset value, with R1.2 billion of cash
still available for acquisitive and organic growth.
Transaction Capital's continuing operations strengthened their leadership positions in their market segments through the delivery of unique value
propositions to stakeholders, generating 17% growth in continuing headline earnings.
ENVIRONMENT
South African economic growth was constrained for the entire financial year as employment and real wage growth slowed, elevated inflation eroded
disposable income and a series of crippling strikes in various sectors had a wide-spread negative impact. The Monetary Policy Committee increased
the repo interest rate by 50 basis points on 30 January 2014 and again by 25 basis points on 18 July 2014. These conditions have placed
pressure on the economy as a whole, with both the consumer and the small and medium sized enterprise ("SME") sectors of the economy remaining
at risk.
Regulatory uncertainty continues, as evidenced by the process followed by regulators and government in approving the National Credit Amendment
Act, which has now been signed by the President with the date of enforcement still to be announced. The lack of enforcement of existing law and
regulation constitutes a threat to unsophisticated users and compliant operators within the financial services sector. Regulatory developments are
closely monitored and Transaction Capital continues to engage frequently with its regulators, with a view to gaining an early understanding of
proposed legislation and appropriately positioning Transaction Capital for change.
This depressed consumer economy does, however, provide Transaction Capital's credit services division with substantial opportunity as its client base
displays increased demand for credit risk management and capital solutions. It is also important to note that following the sale of Bayport,
Transaction Capital is less exposed to the consumer credit environment and the regulations pertaining thereto.
FINANCIAL PERFORMANCE
Transaction Capital's continuing operations delivered pleasing results in line with expectations, despite challenging market conditions.
Continuing headline earnings grew by 17% from R283 million to R330 million. Net interest income increased by 19% to R814 million, driven by a
14% growth in continuing gross loans and advances to R6 737 million and an increased net interest margin of 13.1%, effected in part by a lower
average cost of borrowings of 10.4% from 10.8% the year before. Non-interest revenue increased by 11% to R1 133 million, whilst the cost-to-
income ratio remained stable at 62.7% through the restructure of the group executive office and excellent cost containment and efficiencies in all
businesses.
In line with the strategy to grow gross loans and advances in the mid-teens while focusing on credit quality, the group achieved gross loans and
advances growth of 14%, while keeping the Rand value of non-performing loans ("NPLs") stable, thus improving the credit quality of the book.
Consequently, the group NPL ratio showed significant improvement from 29.0% to 25.7% as a result of effective collection strategies, stricter credit
origination criteria and a decrease in repossessed stock held via the accelerated write-off of entry-level stock. Provision coverage over the NPL
balance was strengthened from 19.2% to 22.1%. Despite this, the credit loss ratio remained almost flat at 5.2%.
The current and comparative NPL ratio is calculated consistently according to a revised definition, considered to be more appropriate for SA Taxi
and adopted during the first half of the 2014 financial year (refer below for detail in this regard).
Following the disposal of Paycorp and Bayport, as well as the capital distribution, Transaction Capital's equity and debt capital position remains
strong. The capital adequacy level of 49.5% is particularly robust and Transaction Capital retains sufficient access to the debt capital markets. On 5
June 2014 SA Taxi's Transsec securitisation funding programme was launched on the JSE Limited, with an inaugural issue of R665 million at a cost
of funding approximately 200 basis points lower than historic rates. 11 investors participated in the programme including five first time funders to SA
Taxi.
OPERATIONAL HIGHLIGHTS
Asset-backed lending - SA Taxi and Rand Trust
The division increased headline earnings by 15% to R188 million, driven mostly by a 14% increase in gross loans and advances.
SA Taxi is an innovative asset-backed lender, focusing predominantly on the financing of independent SMEs mainly in the minibus taxi industry.
The estimated national fleet of 200 000 privately owned minibus taxis remains the primary means of transport for most South African commuters. The
replacement of ageing vehicles continues to create robust demand for the services provided by SA Taxi.
SA Taxi's 13% growth in gross loans and advances has contracted slightly as new vehicle origination is now entirely comprised of premium vehicles
and credit-lending criteria have been tightened further. The number of entry-level vehicles on book continues to decrease resulting in better credit
quality, although the accelerated write-off of these vehicles has resulted in a slight increase in the credit loss ratio from 5.4% to 5.5%, still well within
SA Taxi's 6% upper tolerance level. Recovery rates remain stable at approximately 70%, owing to the nature of the loan which is secured by an
asset of value which can be enhanced through the Taximart refurbishment operation, further differentiating SA Taxi from its competitors.
Recent strong collection trends and the tightening of credit-lending criteria have yielded desirable results. This, together with the accelerated write-off
of entry-level repossessed stock, has resulted in an improved NPL ratio of 27.7% from 31.0% the year before.
The NPL definition was amended1 in the first half of the 2014 financial year to take into account the irregularity and cash deposit nature of
payments made by taxi owners, thereby better aligning the classification of NPLs with customers that exhibit real risk of impairment. The original and
revised definitions have proven to be highly correlated and from the next reporting period only the revised ratio will be reported.
SA Taxi's cost-to-income ratio remains lean at 44.1% resulting from continued operational efficiencies, specifically within the procurement, repair and
resale operations of Taximart, one of the largest Toyota repair centres in southern Africa.
The net interest margin of SA Taxi has decreased slightly from 11.8%, but remains at a healthy level of 11.6%, as the construct of the portfolio is
weighted more towards lower risk premium vehicles which are accordingly priced at a lower interest rate than the higher risk entry-level vehicles.
Rand Trust is a provider of working capital and commercial debtor management solutions to SMEs.
As reported above, the SME sector of the South African economy remains depressed, providing Rand Trust with opportunity to apply its existing
credit and collections expertise, operational capacity, experience and capital to the SME market, who in turn are displaying an increased demand
for working capital and commercial debtor management solutions, in order to improve cash flow, better manage credit risk, optimise collections
efficiency and ultimately increase profitability.
Although a small part of Transaction Capital's earnings and assets, Rand Trust experienced growth of 33% in gross loans and advances, yielding
improved earnings and allowing the business to achieve greater economies of scale. As the business targets larger clients in an expanded
geographic region with new tailor-made product offerings, management is applying the necessary caution to mitigate any resultant credit and
operational risk.
Net interest margin has, however, decreased from 21.5% to 19.1% as new lower yielding products have been introduced, aimed at improving the
value proposition to clients thereby deepening penetration and extending the client's life cycle with Rand Trust.
Credit services - MBD CS and Principa Decisions
The division increased headline earnings by 9% to R104 million.
MBD CS provides a comprehensive range of structured credit risk management, collection and capital solutions to South Africa's largest credit
providers.
Despite the high volume of work available, collections revenue remains subdued in the current consumer credit environment. It is encouraging that
better growth was achieved in the second half of the financial year as MBD CS continued to make progress within the municipal sector, achieving
strong initial yields, investing capital and gaining further traction within new municipalities.
Credit providers displayed an elevated propensity to realise capital and value through the sale of late stage debtors' books, with high activity levels
in the purchase of distressed debt being a feature of the 2014 financial year. MBD CS was an active bidder on most books that came to market
albeit at lower prices than in the past, with purchased book debts to the value of R214 million acquired during this financial year. The lead time to
see the benefits of acquisitions is not immediate as newly acquired portfolios take time to season depending on the nature of the book and the
collections environment. MBD CS currently owns 147 diversified principal book portfolios.
MBD CS has continued to focus on effective cost management resulting in a marginal improvement in the cost-to-income ratio from 84.5% to 84.2%.
Legislation around the changes in the application of the principle of prescription has not yet been enacted. In anticipation thereof, the business has
aligned all of its operational procedures to be fully compliant, and the pricing of new purchased book debts reflects the impact of the forthcoming
changes. The business continues to evaluate the impact of the changes on the valuation of its existing purchased book debt portfolio but does not
expect there to be any material change in this regard.
Principa Decisions is a provider of customer engagement solutions, focusing predominantly on the consumer credit life cycle.
Revenue and earnings remain subdued but not deteriorating in the current consumer credit environment. It is encouraging that the Middle East joint
venture, Qarar, and the expansion of its proprietary Smart software product suite continued to contribute to earnings.
Group executive office
The group executive office structure has been simplified, with most group office functions being devolved into subsidiaries or reduced, enabling
various cost savings. Total costs in the second half of the financial year have reduced when compared to the first half, and this trend will continue
into the 2015 financial year.
1 Old NPL definition: NPLs are those customers that had more than three outstanding contractual installments and who had not made three
consecutive qualifying payments in each of the past three months.
New definition: Identifies those customers that have more than three outstanding contractual installments and have made less than a total of three
cumulative qualifying payments during the past three months.
STRATEGY
Transaction Capital's business units operate in market segments of the financial services sector perceived to be of higher risk that require distinctive
or specialised competencies, and have thus historically been under-served. Transaction Capital then enhances the competitive positioning of its
business units within their chosen market segments, thereby generating societal and stakeholder value by:
- formulating value accretive and defensible competitive strategies;
- defining, and developing the specialised credit, collection, risk and capital management competencies required for the execution of viable business
models, effectively differentiating between actual and perceived risk;
- allocating and investing appropriate equity capital;
- raising high quality, competitive and diversified debt funding;
- deepening penetration within a market segment utilising its distinctive competencies to achieve deep vertical integration of business units across the
value chain;
- identifying opportunities in adjacent market segments where distinctive competencies could be leveraged;
- providing oversight through well-defined governance structures, and establishing a strong culture of accountability, ethics and transparency;
- scaling business units to achieve an acceptable risk-adjusted return; and
- designing organisational structures that devolve responsibility to executive leaders with deep experience (beyond the size of assets currently
managed) and ability to design and implement strategies effectively and innovatively.
Transaction Capital's strategy is to strengthen its positioning within its chosen market segments, as well as to leverage its competencies to create new
positions within identified adjacent market segments.
GROUP RESTRUCTURE
The group was restructured following the disposal of Paycorp and Bayport. On 4 March 2014, the board and its sub-committees were reconstituted
to support the strategic objectives and accommodate the requirements of the smaller group. Concurrently the group executive office structure was
simplified as most group office functions were decentralised to business units or reduced. This enabled the devolution of responsibility and authority
to the operating businesses and achieved cost savings.
During the 2015 financial year, the two existing divisions, being asset-backed lending and credit services, will be reconstituted with the purpose of
maximising current market positioning.
- Asset-backed lending (comprising SA Taxi):
The asset-backed lending division, led by Terry Kier, operates as an innovative asset-backed lender, currently focusing predominantly on the financing
of independent SMEs mainly in the minibus taxi industry, but with the intention to expand into adjacent markets or asset classes.
The division will continue to entrench its dominant market position encompassing the entire value chain within the minibus taxi industry. This is
achieved by augmenting its distinctive competencies well beyond credit assessment, collections and capital mobilisation and management to now
include vehicle and spare part procurement, direct vehicle sales, vehicle refurbishment, short-term comprehensive insurance and telematics. These
additional competencies are intended to enhance its value proposition to clients thus expanding its competitive presence. During the year the value
proposition to clients was enhanced through new product offerings such as SA Taxi Media (advertising in taxis), a stand-alone insurance offering
branded Khusela Taxi Insurance, and a successful direct sales programme of new and refurbished vehicles which facilitates product margin and
superior credit performance.
In addition, SA Taxi continues to leverage its distinctive competencies to create defensible positions within identified adjacent market segments,
financing asset classes such as "bakkies" with 246 deals on book at 30 September 2014.
- Risk services (comprising MBD CS, Principa Decisions and Rand Trust):
The challenging consumer environment provides substantial opportunity for the newly defined risk services division to entrench its market position by
augmenting and combining its distinctive competencies across the companies in the division. Many of its clients, being some of South Africa's largest
credit providers, are demanding structured and complex credit risk management and capital solutions to better manage credit and operational risks,
reduce costs, simplify processes, raise capital and improve working capital cash flow.
In bringing together the distinctive competencies of these businesses under one go-to-market strategy, the intention is to enhance and broaden the
division's value proposition thereby deepening its client offering and expanding its competitive presence. In addition, the division will leverage its
core skill set to access adjacent market segments, such as the public and commercial sectors.
David McAlpin, previously the CEO of Principa, was appointed with effect from 1 October 2014 to the newly created role of CEO of the risk
services division, with Charl van der Walt taking employment at the group executive office.
PROSPECTS
Transaction Capital expects sustainable headline earnings growth from continuing operations in the medium to long term. This organic growth may
be enhanced by acquisitive activity which the group actively continues to seek. These opportunities are expected to ensue within the existing
divisions, where our distinctive competencies can be leveraged. Following the reorganisation of the group, Transaction Capital's solid platform
together with significant cash on hand and access to funding, positions it well to pursue organic and acquisitive growth opportunities with a view to
render sustainable risk adjusted returns to shareholders.
APPOINTMENT OF COMPANY SECRETARY
After more than eight years of service Peter Katzenellenbogen has retired as company secretary. During this time Peter has fulfilled the role of both
group chief financial officer and thereafter company secretary, and has contributed immensely to building Transaction Capital. The board wishes to
acknowledge the vast contribution that Peter has made to the company, and thank him for his years of committed service.
The board is pleased to announce that Ronen Goldstein has been appointed company secretary with effect from 1 December 2014.
DIVIDEND POLICY
The dividend policy has been amended to a reduced cover ratio of 3 to 4 times (previously 4 to 5 times). This change has been implemented as the
group is now more evenly balanced between services and lending businesses, resulting in more moderate capital requirements and allowing for a
higher sustainable dividend.
DIVIDEND DECLARATION
Following the interim dividend of 6 (2013: 9) cents per share, the board has declared a final gross cash dividend of 10 (2013: 12) cents per share
for the six months ended 30 September 2014, to those members recorded in the register of members on the record date appearing below. The
dividend is declared out of income reserves. A dividend withholding tax of 15% will be applicable to the dividend to all shareholders that are not
exempt from the dividend withholding tax, resulting in a net dividend of 8.50 cents per share. The company has no remaining STC credits available.
The salient features applicable to the final dividend are as follows:
Issued shares as at declaration date (including 2 642 883 treasury shares) 572 272 130
Declaration date Tuesday 25 November 2014
Last day to trade cum dividend Thursday 11 December 2014
First day to trade ex dividend Friday 12 December 2014
Record date Friday 19 December 2014
Payment date Monday 22 December 2014
Share certificates may not be dematerialised or rematerialised between Friday, 12 December 2014 and Friday, 19 December 2014, both dates
inclusive.
On Monday, 22 December 2014 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 22 December 2014 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,
22 December 2014.
AUDITOR'S OPINION
Deloitte & Touche 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.
These provisional summarised consolidated financial statements have been derived from the group audited financial statements and are consistent in
all material respects with the annual financial statements. The group's external auditors have issued their unmodified opinion on the group's financial
statements for the year ended 30 September 2014. The audit was performed in accordance with International Standards on Auditing. A copy of the
external 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 the report together with the accompanying
financial information from the registered office of the company.
BASIS FOR PREPARATION
The summarised consolidated financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements for
provisional reports, and the requirements of the Companies Act applicable to summary financial statements. The Listings Requirements require
provisional reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International
Financial Reporting Standards ("IFRS") and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34
Interim Financial Reporting.
The accounting policies applied in the preparation of the consolidated financial statements from which the summary financial statements were derived
are in terms of IFRS and are consistent with those accounting policies applied in the preparation of the previous consolidated annual financial
statements.
These summarised financial results have been prepared under the supervision of M D Herskovits CA(SA), chief financial officer.
SUBSEQUENT EVENTS
No events which would have a material impact on either the financial position or operating results of the group have taken place between
30 September 2014 and the date of the release of this report.
APPROVAL BY THE BOARD OF DIRECTORS
Signed on behalf of the board of directors:
D M Hurwitz
Chief executive officer
M D Herskovits
Chief financial officer
25 November 2014
Summarised consolidated statement of financial position
at 30 September 2014
2014 2013
Audited Audited Change
Rm Rm %
Assets
Cash and cash equivalents 1 345 673 100
Tax receivables 17 64 (73)
Trade and other receivables 493 505 (2)
Inventories 4 85 (95)
Loans and advances 6 386 10 232 (38)
Purchased book debts 552 420 31
Other loans receivable 293 280 5
Equity accounted investments 7 4 75
Other investments 238 481 (51)
Intangible assets 19 21 (10)
Property and equipment 51 96 (47)
Goodwill 192 594 (68)
Deferred tax assets 93 107 (13)
Non-current assets classified as held for sale - 769 (100)
Total assets 9 690 14 331 (32)
Liabilities
Bank overdrafts 101 71 42
Tax payables 2 2 –
Trade and other payables 242 361 (33)
Provisions 18 27 (33)
Interest-bearing liabilities 6 178 9 601 (36)
Senior debt 4 911 7 470 (34)
Subordinated debt 1 267 2 131 (41)
Deferred tax liabilities 186 194 (4)
Liabilities directly associated with non-current assets classified as held for sale - 180 (100)
Total liabilities 6 727 10 436 (36)
Equity
Ordinary share capital and premium 483 1 779 (73)
Reserves 96 385 (75)
Retained earnings 2 384 1 551 54
Equity attributable to ordinary equity holders of the parent 2 963 3 715 (20)
Non-controlling interests - 180 (100)
Total equity 2 963 3 895 (24)
Total equity and liabilities 9 690 14 331 (32)
Summarised consolidated income statement
for the year ended 30 September 2014
2014 2013
Audited Audited Change
Rm Rm %
Interest and other similar income 1 413 1 225 15
Interest and other similar expense (599) (539) 11
Net interest income 814 686 19
Impairment of loans and advances (322) (283) 14
Risk adjusted net interest income 492 403 22
Non-interest revenue 1 133 1 023 11
Operating costs (1 220) (1 071) 14
Non-operating profit 1 - 100
Equity accounted earnings 3 4 (25)
Profit before tax 409 359 14
Income tax expense (79) (76) 4
Profit from continuing operations 330 283 17
Profit from discontinued operations 607 303 100
Profit for the year 937 586 60
Attributable to non-controlling equity holders - 42 (100)
Attributable to ordinary equity holders of the parent 937 544 72
Basic earnings per share 162.7 93.2 75
Diluted basic earnings per share 162.3 93.2 74
Headline earnings per share 61.0 93.4 (35)
Headline earnings per share - continuing operations 57.3 48.5 18
Headline earnings per share - discontinued operations 3.7 44.9 (92)
Summarised consolidated statement of comprehensive income
for the year ended 30 September 2014
2014 2013
Audited Audited Change
Rm Rm %
Profit for the year 937 586 60
Other comprehensive income (48) 122 >(100)
Fair value gains arising on the cash flow hedge during the year <1 10 (100)
Deferred tax <1 (3) (100)
Fair value (losses)/gains arising on valuation of available-for-sale investment (48) 70 (169)
Other comprehensive income from discontinued operations - 45 (100)
Total comprehensive income for the year 889 708 26
Attributable to non-controlling equity holders - 49 (100)
Attributable to ordinary equity holders of the parent 889 659 35
Summarised headline earnings reconciliation
for the year ended 30 September 2014
2014 2013
Audited Audited Change
Rm Rm %
Profit attributable to ordinary equity holders of the parent 937 544 72
Headline earnings adjustable items added
Profit on sale of subsidiary companies net of de-grouping tax payable (586) - (100)
Impairment of goodwill - 1 (100)
Tax on headline earnings adjustments - - -
Headline earnings 351 545 (36)
Less: Headline earnings from discontinued operations (21) (262) (92)
Headline earnings from continuing operations 330 283 17
Summarised consolidated statement of changes in equity
for the year ended 30 September 2014
Share Ordinary Non-
capital and Other Retained shareholders controlling Total
premium reserves earnings equity interests equity
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
Total comprehensive income - (48) 937 889 - 889
Profit for the year - - 937 937 - 937
Other comprehensive income for the year - (48) - (48) - (48)
Dividends paid - - (104) (104) - (104)
Grant of share appreciation rights - 12 - 12 - 12
Repurchase of treasury shares (15) - - (15) - (15)
Repurchase of shares (72) - - (72) - (72)
Capital distribution (1 209) - - (1 209) - (1 209)
Disposal of subsidiary companies - (253) - (253) (180) (433)
Balance at 30 September 2014 483 96 2 384 2 963 - 2 963
Summarised consolidated statement of cash flows
for the year ended 30 September 2014
2014 2013
Audited Audited Change
Rm Rm %
Net cash utilised by operating activities (68) (172) 60
Net cash generated/(utilised) by investing activities 2 385 (133) >100
Net cash utilised by financing activities (1 296) (13) >(100)
Net increase/(decrease) in cash and cash equivalents 1 021 (318) >100
Cash and cash equivalents at the beginning of the year 671 943 (29)
Less: Cash and cash equivalents at the beginning of the
year relating to discontinued operations (448) (402) 11
Cash and cash equivalents at the beginning of the year from
continuing operations 223 541 (59)
Cash and cash equivalents at the end of the year relating to
continuing operations 1 244 223 458
Summarised segment report
Discontinued
Asset-backed lending Credit services Group executive office Group - continuing operations Group
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited
Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Condensed income statement
for the year ended
30 September 2014
Net interest income 741 667 (10) (1) 83 20 814 686 - - 814 686
Impairment of loans and
advances (320) (281) (2) (2) - - (322) (283) - - (322) (283)
Non-interest revenue 250 218 861 790 22 15 1 133 1 023 - - 1 133 1 023
Total operating costs (455) (403) (713) (666) (52) (2) (1 220) (1 071) - - (1 220) (1 071)
Non-operating profit - - 1 - - - 1 - - - 1 -
Equity accounted earnings - - 3 4 - - 3 4 - - 3 4
Profit before tax 216 201 140 125 53 33 409 359 - - 409 359
Impact of classification to held
for sale - - - - - - - - 11 15 11 15
Headline earnings from
discontinued operations
attributable to equity holders of
the parent - - - - - - - - 10 247 10 247
Headline earnings - continuing
operations 188 163 104 95 38 25 330 283 - - 330 283
Total headline earnings 188 163 104 95 38 25 330 283 21 262 351 545
Condensed statement of
financial position
at 30 September 2014
Assets
Cash and cash equivalents 254 226 39 32 1 052 36 1 345 294 - 379 1 345 673
Loans and advances 6 351 5 577 35 47 - - 6 386 5 624 - 4 608 6 386 10 232
Purchased book debts - - 552 420 - - 552 420 - - 552 420
Other investments 238 175 - - - - 238 175 - 306 238 481
Non-current assets classified as
held for sale - - - - - 769 - 769 - - - 769
Other assets and receivables 551 453 259 234 359 300 1 169 987 - 769 1 169 1 756
Total assets 7 394 6 431 885 733 1 411 1 105 9 690 8 269 - 6 062 9 690 14 331
Liabilities
Bank overdrafts 100 71 1 - - - 101 71 - - 101 71
Interest-bearing liabilities 5 115 4 398 177 151 886 922 6 178 5 471 - 4 130 6 178 9 601
Group 915 1 078 45 - (960) (1 295) - (217) - 217 - -
Liabilities directly associated
with non-current
assets classified as held for sale - - - - - 180 - 180 - - - 180
Other liabilities and payables 201 185 217 204 30 71 448 460 - 124 448 584
Total liabilities 6 331 5 732 440 355 (44) (122) 6 727 5 965 - 4 471 6 727 10 436
Total equity 1 063 699 445 378 1 455 1 227 2 963 2 304 - 1 591 2 963 3 895
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
Finance House, 230 Jan Smuts Avenue,
Dunkeld West, Johannesburg, 2196
PO Box 41888, Craighall, 2024
Republic of South Africa
Tel: +27 (0) 11 049 6751
Fax: +27 (0) 11 049 6899
Directors
Christopher Seabrooke (chairman)*, David Hurwitz (chief executive officer), Mark Herskovits (chief financial officer), Jonathan Jawno,
Michael Mendelowitz, Phumzile Langeni*, Dumisani Tabata*, David Woollam*, Shaun Zagnoev*, Roberto Rossi**
(*Independent non-executive) (**Non-executive)
Company secretary
Peter Katzenellenbogen
Auditors
Deloitte & Touche
Sponsor
Deutsche Securities (SA) Proprietary Limited
Transfer secretaries
Computershare Investor Services Proprietary Limited,
70 Marshall Street,
Johannesburg, 2001
Date: 25/11/2014 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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