Share price in freefall as Transaction Capital CEO David Hurwitz abruptly axed

With results much worse than expected, Transaction Capital has notified shareholders that its CEO, David Hurwitz will be stepping down at the end of the year, after yet another startling trading statement.

In a terse Sens announcement after close of trade, Transaction Capital said Hurwitz will leave his position as CEO, as a director of all boards and as a member of all committees within the group, effective 31 December 2023. Hurwitz will be available to the group for the 2024 calendar year, which includes his notice period, “to ensure a smooth handover of his duties”.

Co-founder of Transaction Capital, Jonathan Jawno, will, in addition to his role as chairman of SA Taxi, take over as CEO of Transaction Capital, where his “primary focus” will be on unlocking shareholder value.

Transaction Capital’s share price has already plummeted by more than 80% over the past six months.

The group issued a second trading statement on Monday in the late afternoon, which revealed how untenable Hurwitz’s tenure had become. 

In the update, the group referred to the dire profit warning it issued in March this year, when it blamed ongoing macroeconomic “challenges” affecting the minibus taxi industry, which started at the onset of the pandemic. This had prompted an aggressive restructuring of SA Taxi, a process that is still hurting Transaction Capital profits.

Transaction Capital CEO David Hurwitz. (Photo: Supplied)

Worse than expected