By Hilary Mare
IN accordance with the Namibian Stock Exchange (NSX) listings requirements, Nictus has advised its shareholders that the group´s earnings per share for the six months ended 30 September 2017 is expected to be a profit of between 3.50 and 4.00 cents per share, which is more than 30 percent lower than the previous corresponding period´s earnings of 21.74 cents per share.
In a statement issued this week on the NSX, the group also highlighted that headline earnings per share for the six months ended 30 September 2017 is expected to be a profit of between 3.30 and 3.70 cents per share, which is also more than 30 percent lower than the previous corresponding period´s headline earnings of 19.31 cents per share.
“Major contributors to the reduced results were the current downturn in the economy, as well as growth strategies undertaken,” said the group.
“Retail segment revenue and overall performance declined significantly, with the direct effect of the declining motor industry, as well as the withdrawal of General Motors from Southern Africa, being major contributing factors. Increased operating costs, as a result of a growing market share for furniture retail, had been anticipated, and in line with an endeavour to align the cost structures necessary for renewed focus and customer centricity.”
However, the group’s insurance and finance segment performed within expectations.
“As part of our continuing focus, significant cost savings were achieved, and good returns on investments generated, even with decreased interest rates,” the group added.
Traditionally, the majority of the group’s earnings have been generated during the second half of the financial year.
“Despite the challenging economic environment, we are optimistic that the trend will be sustainable in the current financial year. The growth in assets under management achieved is proof of the success of the growth strategies undertaken. We regard the changing trading environment and the challenges it poses, as an opportunity to strengthen our foundation further, to create exceptional wealth for the future. More than ever, meeting customer needs will put us in a position to maintain sustainable growth,” the group further explained.
Nictus Namibia is the holding company of a group of companies, which retail automobiles, tyres and furniture and provides financial and insurance services in Namibia. Since 1945, Nictus Namibia has become a household name in the country’s furniture business. Nictus Namibia, through its subsidiary, Auas Motors, also operates the General Motors (GM) franchise throughout the whole of Namibia, while Trentyre (Pty) Ltd is utilised for the distribution of tyre and tyre-related products in Namibia, in various sectors of the Namibian economy.
The financial services division of the Nictus Namibia Group is operated through Corporate Guarantee, which brings a unique approach to short-term insurance, through the alternative risk transfer model.
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