Transaction Capital, the holding company for SA Taxi and used-car firm WeBuyCars announced that it is replacing CEO David Hurwitz.
Jonathan Jawno, a co-founder and executive director of Transaction Capital will be taking over the hot seat of the company.
In a JSE SENS statement, the company said, “Mr David Hurwitz will step down as chief executive officer (“CEO”) of Transaction Capital, as a director of all boards and as a member of all committees within the group. David will be available to Transaction Capital for the 2024 calendar year (which will include his notice period) to ensure a smooth handover of his duties. Mr Jonathan Jawno, a co-founder and executive director of Transaction Capital, will in addition to his role as chairman of SA Taxi, assume the role of CEO of Transaction Capital, with his primary focus on unlocking shareholder value.“
This comes after shares plunged 35% on the JSE earlier this year in May, after it reported a worse-than-expected fall in half-year earnings, with analysts saying this was because of uncertainty regarding the group’s future cash flows.
Transaction Capital fell into a massive loss of nearly R1.9 billion in the interim period to end March, retreating off a R615 million profit in the prior year’s contrasting period. This meant the company was skipping a dividend payment to shareholders.
Core earnings on a continuing basis for the group amounted to R353m, down 46% on the previous contrasting period. Similarly, per share attributable earnings slithered 48% to 46.5 cents.
In terms of segmental earnings, Nutun raised attributable earnings by 15% to R189m while WeBuyCars’s attributable earnings fell 22% to R234m. The SA Taxi business was worse off, with a 77% retreat in attributable earnings amounting to R63m.
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