Lender to South Africa’s Taxis Plunges After Posting Record Loss
- Transaction Capital posted loss of $74 million in first half
- Shares are worst performing on South Africa benchmark index
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Transaction Capital Ltd., the South African financial-services firm that surprised with a profit warning in March, plunged the most in almost two months after reporting a record loss.
The company posted a loss of 1.39 billion rand ($74 million) in the six months through March, compared with a 518 million-rand profit a year ago, it said in a statement on Wednesday. Transaction Capital is restructuring its SA Taxi unit, the main source of the firm’s rising impairments, and said it’s comfortable that its balance sheet “remains sufficiently capitalized and debt covenant levels remain intact.”