Pretoria News 2022-11-16

TRANSACTION Capital aims to grow market share of its industry-disrupting WeBuyCars and leverage its customer engagement services technology in Nutun in the next 12 months. The group yesterday reported strong results, with headline earnings a share higher by a robust 52.6% in the year to September 30. This was according to Transaction Capital’s chief executive, David Hurwitz, who was interviewed about the results that saw the total annual dividend raised 35% to 70 cents per share, this in spite of no growth in its taxi financing operations after the taxi industry faced considerable headwinds. Hurwitz said these challenges included less activity through Covid-19, rising fuel prices, and last year’s floods in KwaZulu-Natal, which impacted Toyota SA, maker of the minibus taxi model of choice in this country.“We feel good,…

THE AFRICAN Rail Industry Association (Aria) has called for the speedy implementation of third-party operator access into Transnet Freight and Rail (TFR) network infrastructure in a bid to generate more revenue for the fiscus. Aria has been expressing serious concerns regarding the restrictive terms and conditions Transnet has imposed on the use of the national rail network by private third-party freight operators. The association represents original equipment manufacturers, rail operators and rail services companies in the rail sector and associated industries. Aria chief executive Mesela Nhlapo said yesterday that there was a massive need for private sector investment into the general freight network in light of a backlog of maintenance. Nhlapo said South Africa was at the verge of economic collapse and intervention was no longer an option, but a…

Power utility has a new headache in recruiting a new head for generation ESKOM yesterday in its State of the System briefing once again failed to reassure the country of its grip on the power grid as it cited lack of capacity and finance to execute planned maintenance. This as the power utility has a new headache in recruiting a new head for generation after acting head, Rhulani Mathebula, yesterday resigned with effect from the end of the month. Chief operating officer Jan Oberholzer said Mathebula had said he was quitting due to work pressure, which affected his health and family life. Mathebula had acted in the position only since January and Oberholzer said the utility had not procrastinated on appointing a permanent one but that the role required numerous…

OXFORD Economics Africa has predicted that inflation will fall sharply in 2023 in emerging markets (EM) economies, including South Africa, as global commodity prices are softening. This comes after consumer prices in the US, the largest economy in the world, eased to 7.7% in October from 8.5% in September. Head of global emerging markets research Gabriel Sterne said yesterday that the fall in global commodity price inflation would lead to double-digit declines in annual import price inflation by next year. “Global commodity price inflation is falling and by mid-2023 we expect double-digit declines. We see more downside than upside risks to global commodity prices,” Sterne said. “Most remain 30% higher than prior to Covid-19, even as demand weakens.” US inflatiwon remained high last month but showed tentative signs of moderation,…

THE JSE’S MAJOR listed asset managers are being battered by the uncertain global economic climate and weak equity markets. Global asset management company Ninety-One yesterday reported a 16% decline in pre-tax profit to £110.6 million (R2.25 billion) for the six months to September 30. Similarly, Coronation Fund Managers recently warned its fund management earnings per share for the year to the same date was expected to fall by between 10% and 20%. Coronation, which has mainly South African clients, is expected to report its interim results on November 22. Ninety-One’s founder and chief executive Hendrik du Toit said in a statement the global asset management group had struggled against sharply lower financial asset prices arising from the impacts of rising inflation and interest rates, and geo-political uncertainty. The…

STOR-AGE Property real estate investment trust (Reit), the largest self-storage company in South Africa, continued to deliver a strong performance in the six months to September 30, lifting distributable income per share by 6.1% and an interim dividend of 60.05 cents was declared. Rental income and net property operating income increased by 18.6% and 16.5%, respectively. Same-store rental income increased 9% in South Africa and by 11.4% in the UK. Same-store closing occupancy was at 89.4% locally and 91.8% in the UK. Rental rate growth of 6.8% was achieved in SA and 8.4% in the UK. The investment property value was up 23.5% at R9.82 billion. Tangible net asset value was up 10.5% at R14.47 per share. The loan-to-value ratio was low at 30.1% and more than 85%…