Transaction Capital: Sale of businesses helps treble profit

Transaction Capital, which finances minibus taxis, said first-half profit more than tripled after the sale of two businesses. Net income climbed to R755 million in the six months to March, from R233m a year earlier, it said on Tuesday. Stripping out the asset sales, earnings from continuing operations rose 28 percent to R148m. Last year it sold its stake in unsecured lender Bayport Financial Services for R1.33 billion and sold Paycorp Holdings to Actis for R937m. Transaction Capital said in April it might expand its debt collection unit, MBD Credit Solutions, and draw on experience in asset-backed finance to make insurance acquisitions. “The underserved and growing small and medium-sized enterprise finance market continues to present Transaction Capital with significant opportunity,” it said. Shares jumped 5.86 percent to close at R5.60 on Tuesday. – Bloomberg