Harare - Specialty retail and distribution group, Axia Corporation Limited’s revenue for the year ended June 30, 2018 went up 31 percent to close at $275 925 217 compared to $211 421 504 last year buoyed by increased volumes across the board.
TV Sales & Home achieved a great result with a 19 percent increase in units sold over the prior year, which translated into a turnover growth of 36 percent driven by significant sales in both cash and lay bye sales.
DGA Zimbabwe recorded a 17 percent revenue growth over the comparative period owing to the acquisition of subsidiary companies, Hat On and Baobab, as well as growth in existing business.
Transerv recorded an average revenue growth of 31 percent against to the prior year. Volumes increased in the last quarter of the year, owing to right pricing and product availability.
The Group sustained growth in profitability by recording an operating profit of $25.808 million and a profit before tax of $24.335 million for the year notwithstanding substantial once-off legacy charges recorded in the distribution business.
“Most of these once-off charges were incurred as a result of derecognising some historical debtors and inventory balances that arose as a result of a compromised control and governance environment.
“Management had dealt with the control of environment issues and believes that they have cleared all historical balances as part of the balance sheet restructuring exercise in the affected subsidiaries,” said Group Chairman Luke Ngwerume in a statement accompanying the Group’s financial results.
He said the Group registered a good performance in an environment of increased risks and opportunities and notwithstanding some challenges characterised by delays in making foreign payments to suppliers of goods and services, difficulties in securing import permits and constraints in supply of some local products.
In the period under review, Basic and Headline earnings per share for the year amounted to 2.02 US cents.
Headline earnings were 47 percent above the comparative period and when adjusted for income earned on the derivative option, were 28 percent above prior year at 1.76 US cents.
Ngwerume said significant focus was placed on reducing the Group’s foreign creditor positions and to secure additional inventory as a way to ensure superior offerings to customer.
“Although this has resulted in significantly changed working capital profile, the Group managed to generate cash from operating activities,” he said.
The Group’s capital expenditure for the year totalled $3.997 million while net borrowings increased by $10.558 million mainly to support strategic working capital investments resulting in increased gearing.
- Equity Axis News
