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BH24 Reporter
HARARE – National Tyres Services Limited (NTS) saw its revenue jumped to $13, 8 million in the year to March 31, 2018 from $11, 9 million in the prior comparable period.
According to management “this was the result of a strategy to supplement direct sourcing with local supplies and pushing sales of premium products to improve margins. The mix of budget and premium brands also ensured that out of stock situations were minimised.”
“Generation of cash remains a paramount requirement for our industry. Cash on delivery sales for a large part of our customer base was introduced and this led to a significant reduction in debtors,” said the group in a statement accompanying its results.
Notwithstanding the increase in revenue, the topline remained adverse.
The group’s operating profit for the period was $8, 2 million, while profit from operations stood at $251 728, an increase of 208 percent from the previous year’s loss
Profit before tax $42 318, and the group posted a loss for the year of $61 016.
During the year under review, NTS opened a new branch in the Harare Market Square Area, which enabled the introduction of new services such as exhausts and suspension on a pilot basis, said the group.
Management said the distribution footprint will be extended to cater for demand expansion as traffic flows develop, and several branches have been earmarked for refurbishment and repositioning with the support of a major international supplier.
Going forward, the group said the introduction of SAP in its information technology systems will complement its distribution footprint expansion.
The company did not declare a dividend for the period.
Online Reporter