Good morning, and welcome to this live webcast of Transaction Capital's interim results for the half year ended 31 March 2024. My name is Nomonde Xulu, and I am the head of investor relations at Transaction Capital. We are live this morning from our Nutun offices, and our results presentation will be delivered by our CEO, Jonathan Jawno, and our incoming CFO, Mark Herskovits. The presentation will be followed by a live Q&A. Please post your questions on the online Q&A platform throughout the presentation. I'll now call up Jonathan Jawno to kick us off.
Good morning, and thank you for joining us for Transaction Capital's half-year results for the six-month period to 31st of March, 2024. Over the past six months, we have created simplicity across the group, unlocking stakeholder value and with an increased focus on cost cutting and cash generation. In December, we said we wanted to reflect an open, honest process, where investors were given insights into the risks and opportunities facing Transaction Capital, and which would allow them to make informed decisions on Transaction Capital's future. This continues to be our stance. At a holding company level to begin with, the most significant event over the last six months has been the successful unbundling, placement, and separate listing of WeBuyCars on the main board of the Johannesburg Stock Exchange.
This allowed us to return ZAR 5.2 billion to shareholders through the distribution of 256.3 million WeBuyCars shares. We further raised ZAR 1 billion via the placement. This, in turn, allowed Transaction Capital to materially pay down its debt and move to a net cash position at a holding company level. We are staunch believers in WeBuyCars, and I would like to take this opportunity to wish Faan van der Walt and his executive leadership team continued success with their growth story. We have rationalized our head office with material savings over the last six months. Notably, we have combined the position of chief financial officer and chief investment officer under Mark Herskovits. Mark has been with the group since 2007 and has been leading the SA Taxi debt restructuring process.
We have reduced the board from 14 directors to 10, and further consolidated six board committees into three to improve operating efficiencies at a holding company level. This process is ongoing. After an intensive review of Nutun's operations, Nutun Australia has been successfully sold, and Nutun Transact has been identified as non-core and is currently in a sales process. These transactions will materially strengthen Nutun's balance sheet and liquidity, which will, in turn, support the capital-enabled business. In addition, a major operational structure is underway to streamline Nutun into two distinct businesses: namely, a capital-enabled business and a global BPO business, this through the merger of the customer experience management, or CX, and recoveries divisions. Significant progress has been made in developing Mobalyz's services offering and the restructuring and rightsizing of SA Taxi's operations.
A detailed business plan on the balance sheet restructure has been presented to funders. This has, in principle, been well received, and although nothing has been concluded, we believe that it will form the basis of a successful restructure. To give you the full picture, it is worth reflecting on the holding company debt profile as at the thirtieth of September 2023, and the post-unbundling holding company debt profile for you to fully appreciate the extent of the changes that have occurred. You'll note that at the thirtieth of September 2023, Transaction Capital had total debt and commitments of ZAR 1.4 billion, excluding the WeBuyCars put option liability.
The Transaction Capital holding company balance sheet currently reflects cash of ZAR 571 million against the DMTN debt of ZAR 451 million, resulting in a net cash position of approximately ZAR 120 million. A very different picture to that we presented to you in December 2023. It's important to stress that in addition, we now have an adequate liquidity buffer. The holding company is free of any debt covenants. We have removed the WeBuyCars put option liability and settled the SANTACO obligation. In further balance sheet restructuring and in agreement with our funders, Gomo has been transferred to Mobalyz, together with a legacy loan book of ZAR 429 million rand. The subordinated loan from Transaction Capital to SA Taxi of ZAR 2.2 billion rand has been capitalized.
Both of these steps were done for no consideration, ensuring that the SANTACO equity stake in SA Taxi remains undiluted. Nutun's balance sheet will be significantly strengthened through the sale of Nutun Australia, the pending sale of Nutun Transact, as well as the capitalization of all loan accounts from Transaction Capital into Nutun and the settlement of preference shares by Nutun. We have also gone a long way to renewing, restructuring, and reprofiling existing debt facilities. All these steps support Nutun's CE business. The consequence of all of this is that Transaction Capital can now be viewed as an unencumbered investment holding company with two assets: 100% of Nutun, 75% of Mobalyz, which is written down to zero, and approximately ZAR 120 million in net cash. On the side, it is important to note the simplicity of the holding company balance sheet.
The value of ZAR 1.3 billion investments in subsidiaries is attributable to Nutun, and as I've already noted, Mobalyz is held at zero. Looking at the individual companies, to begin with Nutun. Nutun operates two distinct businesses, the capital-enabled business and the BPO business. The BPO business, which is shown on this slide, reflects the merger of the customer experience management, or CX, and recoveries divisions. In addition to servicing leading South African corporates, the business services clients in the U.K., U.S.A., and Australia, all out of South African fulfillment centers. Nutun's financial results for this period are reflective of a business in transition. We continue to unlock value with our focus firmly on achieving scale and margin, with a strong emphasis on international revenue. The sale of the subsidiaries and simplification of the balance sheet paved the way for the execution of the vision for Nutun.
You will see significant changes in the Nutun balance sheet, as highlighted on this slide. The net result is the increase in equity to approximately ZAR 2.2 billion. It is further worth noting, when assessing this balance sheet, the massive reduction in goodwill and intangible assets, as well as in interest-bearing liabilities and trade and payables. Nutun will transform from a quasi holding company into two simplified, flat-structured operating businesses, the CE business and the BPO business. This slide primarily reflects the impact of the merger of the customer experience management, or CX, and the recoveries division into a single BPO business. As we deliver on Nutun's growth prospects, we will leverage the current businesses' IP developed over more than 20 years in South Africa and take full advantage of the macroeconomic factors that are fast making South Africa a leading BPO destination. Coming to Mobalyz.
Mobalyz, too, operates in two distinct areas, namely the SA Taxi lending business and the Mobalyz service business, which is focused on offering services to third-party vehicle asset finance players. The introduction of Gomo into Mobalyz completes the service offering around VAF. Mobalyz leverages more than 20 years of experience across the mobility sector and includes asset recovery and disposal, specialized collections, refurbishment and resale of vehicles, and specialized insurance. Mobalyz's management team, under Sean Doherty, has been significantly overhauled and strengthened. SA Taxi operations have been downsized and efficiencies have been introduced in line with the new levels of activity, with a strong emphasis on cash management. We have proposed a detailed business plan to the SA Taxi board on the SA Taxi balance sheet restructure to the funders. If accepted by the funders, this will mean that originations continue uninterrupted.
It will also significantly reduce the losses on the existing loan portfolio, as well as support the operating businesses within Mobalyz, which in turn create further equity value. Given the number of funders involved, this has not yet been concluded. However, in light of the clear benefits of this proposal to all, we believe that there will be a positive outcome. Mark will address this in further detail shortly. Notwithstanding the management and operational changes made, support for the new business plan from SA Taxi’s funders is critical for Mobalyz’s survival. Mobalyz’s services are all run on a decentralized basis and have clear mandates in their respective niches. It is early days, but we believe that these businesses collectively have good potential to deliver positively against their respective strategies, despite early green shoots being overshadowed by the lending businesses.
Furthermore, the demand and the performance of the QRT product currently being financed is showing strong performance and vindicates the decision to focus only on the second-hand market. It should be noted that the challenges faced by SA Taxi have also been impacted, have also impacted the overall taxi market, with Toyota having been forced to reduce production significantly. What is clear is that the ability to assess the future of Mobalyz lies in being able to differentiate between the legacy book of SA Taxi and the relevance of the restructured Mobalyz business on a go-forward basis. Mark will now take you through the overall results as published for the last six months and recap on the individual businesses' performance, as well as provide an update on the SA Taxi balance sheet restructure. Thank you.
Thanks, Johnny, and good morning, everybody. The results for this period are largely reflective of the consolidation of the losses incurred at SA Taxi, its subsidiaries, and its funding entities. But these losses, while they are consolidated in accordance with IFRS at a group level, and they have resulted in the basic core and headline losses that we see on this slide. It should be noted that the losses are not funded by Transaction Capital, nor do they impact on the equity of Transaction Capital at the holding company level. Therefore, it is important to note that the current performance reflects legacy issues which don't allow for meaningful forward-looking view of the business.
We believe it is important to assess these results against the progress made towards the strategic goals set in December 2023, as explained by Johnny, and against the performance of the prospects of and the prospects of Nutun and Mobalyz. Further, I'd like to note the reasons for the restatements in the prior reporting period. Most significant is the reclassification of the prior period profits for WeBuyCars, Nutun Australia, and Nutun Transact as discontinued operations. Then we have the reversal of the classification of the SA Taxi auto refurbishment and repair business from discontinued to continuing operations, which followed the reversal of the decision to sell that business. Lastly, there is a correction in the prior period for the accounting treatment of the put option liability relating to the acquisition of Synergy as part of the Nutun CX business.
As already shown by Johnny, the holding company is now debt-free and vastly simplified. Therefore, I will not speak further on the performance of the head office, save to say that from an operating perspective, it is our objective to run this part of the business on a break-even basis going forward. Taking a closer look at Mobalyz, in H1 2024, Mobalyz made a core loss from continuing operations of ZAR 1.8 billion, driven primarily by the reduction in the abscondment, violation, and credit shortfall cover in SA Taxi's insurance business, which has resulted in a once-off net loss of ZAR 966 million. SA Taxi, together with the funders, elected to materially reduce this cover, which resulted in an accelerated impairment.
However, despite the adverse impact that this decision has had on this period's earnings, it was necessary to create a sustainable insurance business, something which has now been achieved. Mobalyz continues to operate with a rigorous cost-cutting mindset. Significant progress has been made in this regard and is reflected in the improved cost-to-income ratio. All the cost reductions committed to and communicated in the December 2023 financial year have been executed and are being realized monthly. A critical point to note is that in H1 2024, the financial results for Mobalyz do not highlight the operational improvements made over the last year, as the impairment charges continue to overshadow the SA Taxi business.
It's important to understand that this poor result is largely a consequence of SA Taxi currently being managed with a priority on preserving and generating cash, as opposed to optimizing profit. As such, at times, commercial decisions that prioritize cash generation are being executed at the expense of profitability. This approach has the support of the funders, and management believes it is the appropriate strategy for where the business finds itself and expects that this will continue to weigh on the earnings outlook for the year to September 2024. SA Taxi's gross loans and advances decreased by 5% to ZAR 16.2 billion. The number of loans originated also declined by 76% year-on-year, in line with management's previous guidance that SA Taxi would aim to originate only 180 pre-owned taxis per month as the business implemented a revised loan origination strategy.
In January this year, we further reduced originations to stretch out our funding runway until the balance sheet restructure is secured. SA Taxi cannot operate profitably at such low levels of originations, but once again, this is reflective of the drive to preserve cash while the debt restructure is in process. The collections rate as a percentage of total installments raised has deteriorated year-over-year. The pressure on collections continues to be driven by the tough economic conditions facing our clients, and we do not expect this metric to improve in the foreseeable future. However, initial indicators on loans originated in the past twelve months are positive and show that the credit tightening strategy is having the desired effect.
We anticipate that the overall loan portfolio will only show improvement in the medium to long term, as underperforming credit is worked out and better quality credit becomes a more meaningful proportion of the overall gross loans and advances. Lower origination levels, coupled with high repossession rates and the sale of these assets through alternative channels, including the sale of salvage vehicles, results in lower recoveries but faster cash generation. The lower expectation in recoveries, as well as lower collections and the increase in debtors moving into stage three, is reflected in the higher credit loss and provision coverage ratios. As regards the debt restructuring process, although it has taken longer than we had hoped, we have made meaningful progress in our discussions with lenders across different structures.
While final agreement has not yet been concluded, the current proposal to revolve assets within specific funding vehicles has generally been well received. Under this proposal, the funders in entities which choose to revolve their assets are effectively deferring repayments on their loans. After servicing interest and costs, any remaining capital. Instead of repaying capital on the funding, any remaining collection proceeds are allocated to recycling the stock in those same entities, allowing the business to originate new QRTs up to a level of 200 units per month. This not only allows the business to continue as a going concern, but will also materially reduce losses for funders in comparison to a scenario where the business goes into a rundown. Note that this revolving solution is a medium-term strategy that will allow the business the opportunity to attract new capital over the next 24 months.
We expect to shortly get clarity on the terms under which this proposal will be supported by the funders. Turning to Nutun: in H1 2024, Nutun's core earnings from continuing operations attributable to the group decreased by 14% to ZAR 151 million. Revenue from CX services grew by 21%, while international revenue from CX accounted for 36% of Nutun's total revenues, up from 31% in H1 2023. Revenue from CE services decreased by 11% in H1 2024. Revenue growth from the CE services was primarily impacted by lower acquisitions of NPL portfolios. In H1 2024, Nutun invested ZAR 123 million in acquiring NPL portfolios in South Africa, down 81% on H1 2023.
Nutun's operating costs increased substantially in the last period, as the business invested in infrastructure for growth and increased contact center staff numbers to meet anticipated CX demand for CX services. However, the anticipated increase in the volumes has been delayed, creating a disconnect between the costs and the income. This is a timing mismatch, which is expected to reverse. The focus in H2 2024 is on driving revenue growth and further efficiencies in the delivery of CX services. As Jonathan has already highlighted, this has been a transformative period for Nutun, and it isn't the best time to evaluate its performance because of the corporate and restructuring activities. The CE business has incurred higher cost of collections in the last period due to the economic environment that has resulted in consumers battling to service their loans.
This, in addition to the reduction in book buying, has resulted in the muted performance of this division. At 31 March 2024, Nutun's NPL portfolios were valued at ZAR 4.9 billion. Management expects estimated remaining collections of ZAR 7.9 billion from this asset over the medium to long term, which is up 6% on the prior year. Over this period, the CE business continued to deploy capital conservatively as it applied a more cautious pricing framework in the current market. Due to the deteriorating consumer environment, there is currently a misalignment between sellers' expectations and what we are prepared to pay for NPL portfolios. This is a cyclical trend that the business has seen before, and we expect to return to higher levels of book buying when the market pricing dynamics normalize. Access to capital for Nutun CE business remains a crucial component of funding NPL acquisitions.
In response to this and the general funding environment, and in consultation with our funders, we have increased our equity underpin ratio to 30%. In addition, progress has been made in renewing, restructuring, and reprofiling our existing debt facilities. Furthermore, the sale of Nutun Australia and Nutun Transact will materially enhance our balance sheet and liquidity, which will support the Nutun CE business. With that, I'll hand back to Johnny for the outlook.
Thank you, Mark. In terms of prospects, we will continue our commitment to unlocking value for all our stakeholders. This is the dominant objective that drives us every day. As we have demonstrated from our activities over the last six months, and as we look to our planned execution over the next twelve months, we are confident that we will achieve all our objectives in this regard. As mentioned, we have presented SA Taxi funders with a proposed new business plan. This has, in principle, been well received, and we continue to engage with our funders on the terms under which it would be supported. In parallel, they've also shown their support for the services businesses that is being developed under Mobalyz. Within Nutun, we have taken bold steps over the last six months to bolster management, remove costs, and streamline the operations into two distinct businesses.
This has come at a short-term operating cost. We are confident that this is the correct strategy and that this will unlock value in the medium term. Transaction Capital's executive will continue to work closely with Nutun's enhanced management team to deliver on our ambitious growth plans. Mark and Nomonde will now join me for the Q&A session. Thank you.
Thank you for your patience, and welcome to our Q&A session. Reminder to please keep posting your questions on the online platform, and we will address them as we go along. Firstly, I would like us to talk about briefly talk about the unbundling of WeBuyCars. Jonny, the share price of WeBuyCars has jumped up significantly, almost 25% in the month since it listed. Do you not feel that maybe Transaction Capital undersold its shares at ZAR 18.75?
Great. I think, there's a few parts to that answer. I think firstly, it comes as no surprise to us that the WeBuyCars market cap has quickly gone to the level of just under ZAR 10 billion, which it has. You will note that when we did our book build, the guidance that we gave the market, which was an informed view of both management and, together with our advisors, PSG, was that fair value for the asset was between ZAR 8.7 billion and ZAR 10 billion, and, it's played out very quickly to be in the order of ZAR 9.5 billion. So there's no surprise for us of, that the price has moved to that level.
Obviously, what was disappointing at the time was that at the book build, we could only get away at ZAR 18.75 in the size that we wanted. I think it's a function of the cloud over TC affecting the book build process. That said, we faced a very clear reality, and that is we had debt at the holding company level that had been incurred by virtue of our support for Taxi. We had invested over ZAR 2.2 billion into Taxi out of holding company proceeds, and we had to settle that debt, and really, we felt that the only way, given that we couldn't restructure it with the banks, was to move ahead with the sale of WeBuyCars and the unbundling of it.
We feel that that transaction really unblocked the whole ability for us to implement all the strategic objectives which we've highlighted in the slide. And so I think that the loss, if you wanna call it, or the discount, that we gave away some WeBuyCars shares in terms of the book build was a very small percentage of our holding, only about 11% or 12%, has been more than made up by shareholders, A, in the growth in the value of their WeBuyCars shares, but in the simplicity and the clarity that it's created in Transaction Capital to facilitate the next wave of value uplift.
Thank you. Moving on to Nutun, and maybe, Mark, you can talk to this one. In December, the company spoke of the losses in SA Taxi and the related funder sentiment impacting Nutun's access to funding. What are you doing to manage that, and is it still an ongoing situation?
Yeah, I mean, I think, you know, we must be clear that that is still a factor that impacts on access to funding from Nutun. But I think we need to distinguish quite clearly between different approaches that funders take. For those funders that are focusing their sort of attention on Nutun as a business, its strengths, its balance sheet, particularly with all of the additional restructuring that Johnny spoke about, the further strengthening of that balance sheet, the cash flows that come out of that business. With that hat on, we have many of our funders who are perfectly willing to continue to fund Nutun, and those are the people that we are obviously continuing to deal with on that basis.
There are, of course, another group of funders who are coming at it with a different kind of lens, one which is really more focused on the fact that they may have taken on some difficult exposures in SA Taxi, their losses that are likely to result. And that simply for that fact, almost as a way to penalize TC or Nutun, that they will then kind of say, "No, well, you know, we're not really interested in funding Nutun."
I think that there are two categories. Fortunately, we've got enough that are in the first camp that can keep our business moving, and in fact, with the additional liquidity that we've already raised from selling off Australia, and hopefully the sale of Transact. That will not be our issue. In fact, as we alluded to in the presentation, the bigger sort of dynamic that we've been dealing with in the last six months has been more a market dynamic, where the sellers of books seem to be reluctant to sell at prices that we deem to be fair value, given the current market conditions.
So the slowdown that you saw in the acquisition of portfolios in the last six months is almost entirely attributed to pricing and not because of a lack of access to funding. And the last point I'll just make around the funding is that obviously the whole other side of the business, which is the CX or the BPO part of the business, is not capital dependent. It's a services business, and therefore is unaffected by anything that might be taking place in the capital markets.
Okay. There's a question that is connected to Nutun and book buying, so I'll just ask that at this point: Has the reduced book buying by Nutun forced the traditional sellers to collect their own debt, or are there other buyers willing to still buy the NPLs?
So I think, l et me just quickly take that one as well. That there's it'll be a mix of realities. But one thing that has been quite interesting, that we've seen in the last period in particular, is we've seen a number of instances where there've been multiple bidders for a book. So not just us and our pricing, but actually, the sort of array of potential investors have been bidding for books where nobody won the book. The seller decided to withdraw the portfolio from the sale process simply because nobody was willing to match the seller's expectations. So I don't think that we should say that this is a unique sort of phenomenon that's particular to Nutun. It's something that we're seeing more and more in a more general basis. So, you know, that's, sorry, did you want to add to it?
Yeah. And I think if I could add to that, it's an important point because the relationship between the recovery side of the business, the contingency collections, and the principle, the book buying, are symbiotic. So we have seen, and we've been in this business now for just on 20 years, so we have seen over those period where there's a shift from clients to a contingency-based collections, and then at times, a shift towards rather selling the asset, depending on where they sit in terms of capital, provisioning, and operations. So this doesn't happen overnight. A lot of our sellers are big institutions, and it takes time to filter through. But one thing that we don't see happening, we don't see these big institutions starting to hire up staff and actually look towards collecting this debt themselves.
So ultimately, it will be a shift between recoveries on a contingency basis and the book buying, and that will take time. We, of course, play in both, and we're the biggest player on both sides, so we will benefit once the market settles down. But that kind of recalibrating of the market is not overnight and can take a few months.
Thank you. Let's now talk a bit about Mobalyz. So in the presentation, we spoke a bit about Mobalyz's services business, which, although overshadowed by the lending business, has promising prospects. Could you tell us more about it, and what makes you optimistic that Mobalyz Services will deliver on your expectations?
Well, I think, there's a few aspects to that. One, what we have realized through this process, this is something that we had started embarking on, but obviously, it's been accelerated through this restructure process, is that the integrated approach of SA Taxi, in terms of how it deals with collections, recovery, asset recovery, disposals, on an integrated and holistic basis, is actually quite unique to the market. And as we have engaged with the various other players in the space, we have realized that, the service offering that we have is quite unique, and that the very same challenges that we are facing in the SA Taxi business are being experienced by all players in the VAF space.
In other words, the fact that the consumers are under pressure, the interest rates, all the things that we've alluded to. And what is clear through that engagement is that there are services that we can offer other players that can enhance their performance in those various areas of asset recovery, disposal, et cetera, et cetera. And the reason for our optimism is twofold: one, because it's self-evident, the service offering that we have, and secondly, the response that we've had from different players, where it's evident that the skill set that we have is lacking and is relevant to those other players. And we are in deep conversations at an advanced stage with many players, not just one, to start performing those services, and it's for that reason that we have the optimism.
Thank you. Moving back to Nutun, question from Ruan: How will Nutun use the proceeds received from the sale of Australia?
Well, not to management bonuses. But I would say that, you know, we look at the balance sheet holistically. I think that you will see from the pro forma balance sheet that we presented that the initial, remember, this money has really just come in, and that's why this reporting period reflects the assets as discontinued, but the benefit of the earnings are not reflected. It really bolsters the balance sheet, improves our liquidity, improves our capital underpin. That invariably finds its way to the book buying business, as Mark said, because the BPO business is very capital light, and that continues to grow without funding. So in short, I think we find that the bolstering of the balance sheet will support the book buying activity.
Right now, ironically, we find ourselves in a position where the book buying activity has slowed down for non-capital reasons, as Mark alluded to. But in the fullness of time, that stronger balance sheet will allow us to continue to deploy capital into the capital-enabled services, which is an important side of the business, although the BPO is the faster growing side of the business.
Thanks. Another question from David at SaltLight Capital: Could you kindly give us an update on the holdco running costs for the next year? So what do you see that looking like in the next year?
Okay, so I think an important question, because just so that we clarify, the holdco operates on a pure break-even basis. So effectively, when you see the performance of the underlying subsidiaries, that is after the head office costs, if you want to call them that, have been recovered. So it's a net, it's an absolute, you know, cash in, cash out basis. Two things have happened in the holdco. We have significantly simplified the business, simplified the debt structures, tidied up the operating procedures. I would say, when we started this process, there were maybe 60 people in the head office when I joined a few months ago, and I think we're now at about 20 people, and doing a good job, hopefully. These costs don't come.
We are always under pressure to reduce the cost, because the more we reduce the cost, the benefit we can pass on to our subsidiaries, which is important. And therefore, we are very motivated to do this. These, a lot of these people are senior people. Like, if you see the role that we've just done, where we've merged two senior roles, that takes time to do, and there are costs in and of itself to do those. So we see the costs coming down dramatically. It will be constantly trickled down, and that benefit will be reflected in the subsidiaries, because the holding company will continue just to break even. But, as well, with the WeBuyCars having been IPO'd, the pure asset base is less.
We look to get to a point where the head office, if you want to call it that, not a term I like, is the bare minimum number of people to do two functions, really: manage the reporting, the investor relations, and listing requirements on the one hand, and make sure that the risk and the governance and the strategy amongst the two, between the two operating business. It's significantly down and going further.
Thank you, Jonathan. Moving back to you, Mark. You spoke to this in your presentation, but I think just a question to clarify: the funding runway will be ending soon for SA Taxi. Is the debt restructure on track for June 2024?
Yeah, listen, I mean, that is obviously the key milestone that we're all working frantically towards. The person who asked that question is correct, that we're down to a matter of weeks, really, in terms of funding a runway and our ability to continue to originate loans uninterrupted. What has been quite interesting, as we've been through this restructure process, really since March of last year, is that whenever there has been some kind of a milestone that we needed to get through with our funders, barring whatever, this is just how it seems to work out, is that it always goes right down to the wire. You kind of go right to the edge before you get, whether it be a waiver or whatever it is that you require.
I think it's probably got something to do with the fact that we do have a particularly complicated structure that we are working with, with many different lenders, and so I suppose it should be kind of expected that these things do take long. That said, we're coming very towards the end of this process now, and I believe in the next few weeks, we will have clarity on moving down this proposal that we've put forward in terms of revolving the assets in some of the structures. As we said, you know, we remain of the view that we will get this done and the business will continue for the next 24 months at least. But we can't, as we sit here today, tell you that it is signed and sealed, because it isn't quite yet.
Thanks. That question was from Thando Mtshali, and we will conclude with another question from Thando: What is the estimated timing of the unwind of the revenue cost mismatch at Nutun? Do you have an estimate?
No, I think that's live. In other words, that's work in progress. I think that's not more than a couple of months of unwind. That is just short-term operating inefficiencies, maybe some, one or two, poor judgment calls internally in terms of the rate of ramp-up relative to the onboarding of new business. I would describe that as purely operational, and that is not endemic or strategic in any way. So that will unwind in the course of the next six months. How does it happen? Not, it shouldn't happen. But I think it's part, it's a cost that you pay when you.
Well, we are paying for the extent of the restructuring that we are going in, you know, that that business is going through and in the tight, tight parameters that we're trying to achieve it. So that's a, that, that kind of is a fallout of the restructure, rather than something systemic in the business, and it's already reversing, and it won't be there, this time next year for sure, but before that.
Thank you. Thank you, Mark and Johnny. That concludes our questions for now. We are obviously on Investor Roadshow for the next few days. But that concludes for today, Transaction Capital's results, interim results for the half year ended 31 March 2024. Thank you all for joining us this morning.
Thank you.