adminNational Tyre Services (NTS) slid deeper into the red for the year ended March 31 this year after its net loss position widened to $626 000 from $176 000 the previous year as sales decreased. In the period under review, NTS saw its revenue slump to $13 million from $14,3 million last year leading to an operating loss of $1 million, which doubled from $464 000. The company’s basic loss per share also widened to 0,25 cents from 0,07 in line with the financial performance.
NTS chairman James. Moyo said a combination of increased competition and persistent liquidity challenges accounted for the decline in performance. “This tight environment resulted in down trading across most consumer goods including tyres,” he said.
“A swing away from premium high margin brands towards low margin tyres continued.” NTS opened two new branches in Harare and Mutare to widen its distribution footprint. “Competition continues to put pressure on margins as promotional price activity is now regular,” Mr Moyo said.
“There were promotional activities including road shows at all centres, improved market awareness thus assisting in efforts in our strategy to gain new ground in securing new business.”
Mr Moyo said the retreading business recorded an 18 percent decline but benefited from discounts from suppliers. In the outlook, Mr Moyo said the tyre manufacturer would continue working on strategies to boost sales, cut operating costs and would re-brand some of its stores. — New Ziana.
Online Reporter