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Further Voluntary Trading Update in respect of WeBuyCars for the five months ended 29 February 2024
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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