Bye Bye Transaction Capital Hello Nutun

Transaction Capital has called 2024 a “watershed year” as it undergoes a complete transformation.

By the end of this transformation, the company will no longer exist in its current form, making way for Nutun (known as a global business process outsourcing specialist) which will remain listed on the JSE. This brand and operation shift follows some rather big moves like unbundling and separately listing WeBuyCars, selling its controlling stake in Mobalyz, and shedding non-core operations to focus on a leaner, more strategic business model.

The company’s transformation hasn’t come without challenges. Transaction Capital expects a loss from ongoing operations of maybe R222 million for the year. When factoring in discontinued operations, total losses could actually surpass R1 billion (which they have had to find elsewhere). Nutun also faced setbacks, including funding pressures and tough market conditions, especially as South African consumers faced growing financial strain. Internationally, Nutun had to shift its client base, which added costs before revenue growth could catch up.

Despite the tough year, there’s optimism for Nutun’s future. The sale of Nutun Australia and Nutun Transact brought in nearly R1 billion, shoring up the company’s balance sheet. Leadership changes, including new appointments to guide Nutun’s local and international operations, are expected to position the business for future growth.

While the benefits of these changes weren’t reflected in the 2024 results, the company’s management is confident that Nutun is on track to becoming a leading global BPO player.