Transaction Capital initiatives of the past year included a R1 billion capital raise at WeBuyCars. Picture: Supplied
Transaction Capital said yesterday the conclusion of a strategy that arose out of a number of watershed transactions through the past year will result in its transformation from an investment holding company into a global specialist Business Process Outsourcing (BPO) operator.
“Nutun will become the first South African home-grown BPO to be publicly traded on the Johannesburg Stock Exchange,” Transaction Capital said at the release of results for the year to September 30.
Transaction Capital initiatives of the past year included a R1 billion capital raise at WeBuyCars, followed by the distribution and separate listing of all WeBuyCars shares still held by Transaction Capital shareholders.
Holding company net debt and contingent liabilities were eliminated, while the non-core subsidiaries of Nutun were disposed of, resulting in the strengthening of its balance sheet and focus on its core businesses.
In addition, a controlling interest in Mobalyz, was disposed of to its management consortium.
Nutun’s experience as an owner-operator in the South African market for over 25 years sets it apart from various multi-national market entrants that operate franchise or branch locations in South Africa, Transaction Capital said.
“Nutun would also continue to be a large and innovative provider of credit and collection services and an acquirer of Non-Performing Loan (NPL) books in South Africa,” the group said.
The 2024 results reflected that the transition was not yet complete. The sale of Nutun Australia for a consideration of R624 million and the sale of Nutun Transact after the year-end for R405m, combined with an accelerated buy-out of the 25% minorities of Synergy CX, all served to simplify the Nutun business and strengthen its balance sheet and liquidity.
Core headline earnings from continuing operations fell to a loss of R92m, from a profit of R179m in 2023, due to factors listed above as well as legacy costs at the group head office, which had now been eliminated.
“The outlook on Nutun's medium- and long-term potential is positive. The strengthening of the balance sheet and the securing of funder support enabled Nutun South Africa to resume book buying activities in the fourth quarter,” the group said.
“This growth is anticipated to continue into 2025 as market dynamics improve and the benefits of liquidity filter through.”
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