Minibus taxi financier expects major profit loss

File: Transaction Capital, which finances minibus taxis, is warning its profit for the year will be up to 70-percent lower.

File: Transaction Capital, which finances minibus taxis, is warning its profit for the year will be up to 70-percent lower.

AFP/Mujahid Safodien

JOHANNESBURG - Transaction Capital, which finances minibus taxis, is warning its profit for the year will be up to 70 percent lower.

The company says the taxi industry is under severe financial pressure and only expects repayments to normalise next year.

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This will see its headline earnings drop by as much as 80 percent from the previous period.

In its latest trading update, the group says COVID-19 has proven that the minibus taxi industry is absolutely necessary to the economy and cannot be allowed to fail.

Source
eNCA