Transaction Capital CEO, David Hurwitz, has been ousted and relinquishes all board positions after massive 80% share-price crash in 2023. Picture: File/Fotor.
Flipped it: Transaction Capital CEO ousted amidst earnings SLUMP
Transaction Capital CEO, David Hurwitz, has been ousted and relinquishes all board positions after massive 80% share-price crash in 2023.
Transaction Capital CEO, David Hurwitz, has been ousted and relinquishes all board positions after massive 80% share-price crash in 2023. Picture: File/Fotor.
David Hurwitz, the CEO of Transaction Capital, a majority stakeholder of WeBuyCars, has been ousted following a poor year for the company.
On Tuesday, 12 September 2023, Daily Investor reported that Transaction Capital confirmed its CEO would be stepping down.
TRENDING: Which supermarket offers the CHEAPEST prices on groceries?
Hurwitz has been CEO at Transaction Capital since 2014.
The stock market reacted to the news quickly and by Tuesday morning the share price had fallen by around 20%, rubbing salt into WeBuyCars’ wounds.
ALSO READ: BLEAK outlook for SASOL as South Africa cleans up its ACT
Transaction Capital’s share price has lost over 80% of its value since March 2023, when it reported a massive R1.9 billion loss year-to-date in 2023.
Shares currently trades at R5.50 versus R34.00 per share at the start of the year.
TRANSACTION CAPITAL CEO OUSTED
In parallel with this news, the firm also released a trading statement for its financial year ending 30 September 2023, and the results are not good.
Transaction Capital also backs SA Taxi – a company that offers, “complete, one-stop-shop solution for your taxipreneurs,” according to its website.
TRENDING: Tick-Tock: What happens if you MISS the 2023 tax return deadline?
Unfortunately, the company says the restructuring of its SA Taxi business has put pressure on its profits. That, and the underperformance of WeBuyCars – 20% down from 2022 – is to blame for the significant decrease in earnings.
ALSO READ: R26 million jackpot winner reveals his secret to lottery success
In its half-year statement, it tried to focus on the positives: “WeBuyCars has consistently gained market share in 2023, despite a tough economic environment as well as a recovery in the supply of new vehicles that have put pressure on average selling prices, margins, and inventory turns.”
FLIPPED IT GOOD
According to Daily Investor, Transaction Capital expects its net profits to be 152% lower than those of 2022.
Therefore, investors in WeBuyCars and the larger company can expect at least a R648 million net loss. Currently, WeBuyCars, SA Taxi and Nutun, a digital services company based in Gauteng, make the majority of Transaction Capital’s net profits.
ALSO READ: The NEW adjusted COST to renew your vehicle license
In its release, Transaction Captial was direct and straight to the point. These was zero mention of Hurwitz’s nearly decade-long contribution to the company or a thank you for his service to the group.
MOVING ALONG
Hurwitz will be replaced by Jonathan Jawno, executive director of Transaction Capital.
And, understandably, amidst its financial woes, WeBuyCars is putting a halt on any further branch expansion. It says it will, “Prioritise growing into its existing infrastructure in order to increase cost efficiencies, improve unit economics, and create operational leverage,” concluded the company.
ALSO READ: Cape Town clampdown yields massive results, says city
WeBuyCars sells in the region of 12 000 cars every month, which exceeds that of even South Africa’s most prolific new-car retailers.
What do you think of the Transaction Capital CEO being ousted? Have you bought or sold a car through WeBuyCars? Be sure to share your thoughts with our audience in the comments section below. Send an email to info@thesouthafrican.com.
Or you can WhatsApp us on 060 011 0211. And don’t forget to follow us @TheSAnews on Twitter and The South African on Facebook for the latest updates.
Tags:
