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Transaction Capital Limited TransCapital Investments Limited (Incorporated in the Republic of South Africa) (Incorporated in the Republic of South Africa) Registration number: 2002/031730/06 Registration number: 2016/130129/06 JSE share code: TCP Bond company code: TCII ISIN: ZAE000167391 LEI: 378900AA31160C6B8195 ("Transaction Capital" or "the Company")
FURTHER VOLUNTARY TRADING UPDATE IN RESPECT OF WEBUYCARS FOR THE FIVE MONTHS ENDED 29 FEBRUARY 2024 INTRODUCTION
Shareholders are referred to the voluntary trading update released by Transaction Capital on SENS on Tuesday, 13 February 2024 regarding WeBuyCars' operating performance for the four months ended 31 January 2024.
This announcement aims to provide shareholders with a further business trading update for WeBuyCars for the five months ended 29 February 2024 in light of the anticipated WeBuyCars bookbuild. The information contained in this announcement has not been reviewed or reported on by the group's external auditors and is the responsibility of Transaction Capital's board of directors. FURTHER TRADING UPDATE
During February 2024 (29 days) WeBuyCars continued its strong performance with 14 354 vehicles purchased and 13 132 vehicles sold. The sales number for February 2024 is pleasing, with sales per-day volumes in-line with January 2024, and this positive momentum has continued into March 2024. Revenue for the month of February 2024 was R1 855 million and core earnings was R66 million. Year-to-date numbers are as follows:
For the 5 months ended February 2024 2023 2022 Movement 2024 vs 2023 Financial performance
Revenue Rm 9 491 8 148 6 677 16% Core earnings Rm 333 266 340 25% Core cost-to-income ratio % 64.0 58.5 49.5 Cash generated from operating activities Rm 305 401 106 -24% Net interest-bearing liabilities
(excl IFRS 16) Rm 1 154 1 261 1 119 -8% Operational performance
Vehicles purchased Number 68 209 59 077 48 826 15% Vehicles sold Number 66 276 58 823 47 255 13% Stock days Number 30 29 24 Inventory Rm 2 135 1 900 1 245 12% Inventory units Number 13 569 11 450 8 387 19% F&I penetration on units sold % 19.3 21.4 16.6 F&I units Number 12 778 12 588 7 856 2% Vehicle parking bays Number 10 444 9 895 6 985 6% Buying pods Number 74 59 24 25% Total e-commerce sales Number 17 695 12 151 14 303 46% Total e-commerce sales % 26.7 20.7 30.3
Core earnings grew by 25% in the first five months of the 2024 financial year, compared to the same five month period in the 2023 financial year.
WeBuyCars' balance sheet continues to be conservatively geared with net debt of R1 154 million consisting primarily of mortgage loans of R733 million on several vehicle supermarkets, and working capital facilities of R421 million to fund inventory. Inventory levels have increased to R2 135 million due to increased purchasing activity. The decrease in cash generated from operating activities relative to the prior corresponding period, and marginal increase in inventory days, is primarily due to the increase in inventory (more vehicles have been purchased relative to sales).
We refer to note 9.1.1 of the Pre-listing Statement that was published on Transaction Capital and WeBuyCars' websites on 12 March 2024 and wish to point shareholders to the data sheets in the investor relations section of Transaction Capital's website. These data sheets have previously been disclosed as part of Transaction Capital's half year and full year results reporting and show financial information relating to WeBuyCars for comparable 12 month periods ending 30 September. Sandton 18 March 2024 Transaction Advisor and Sponsor PSG Capital Legal Advisor as to South African law ENSafrica Legal Advisor as to US and UK law Goodwin Tax Advisor Werksmans Attorneys Investor Relations
Nomonde Xulu ' Email: nomondex@transactioncapital.co.za
Date: 18-03-2024 07:05:00
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