Nyambirai wins Pelhams fight

general meeting held on Tuesday, Mr Nyambirai won 56 percent of the votes through TN Asset Management and Lifestyle Holdings, making the outcome a foregone conclusion.
Had a judgment not been made on the 35 percent shareholding, the vote would have been close.
The vote resulted in the appointment of Mr Nyambirai, Mr Rugare Chidembo, Mr Alexander Gonese, Mr Winston Makamure and Ms Charity Chanetsa as directors.
They garnered with 63,2 percent in their favour and the removal of Mr Chidawu and Mr Mupandanyama with 18,2 percent against.
Mrs Florence Ziumbe, Mr Doug Munatsi and Mr Phineas Whata resigned from the board in July this year.
Mr Liberty Razunguzwa survived as a director with 81,8 votes percent in his favour.
Last week, Mr Chidawu bought a 11 percent stake of the company in a special bargain deal involving 118 million shares.
In Mr Chidawu’s absence, Mr Nyambirai challenged the appointment of Mr Simbarashe Mupandanyama as chairman on the grounds that he was up for removal in terms of Article 5.1.
Chief executive Mr Oswald Masoha was appointed in his place.
With Mr Masoha acting as chairman, chief operating officer Mr Isaiah Mukudu gave a brief trading update, noting that since the group was in a closed period, he could not offer much detail.
Management said operations from the beginning of the financial year had been subdued, mainly because of the failure by the company to access meaningful funding for the debtors book.
This is mainly due to the business model being driven by credit, although the credit sales create funding gaps which are usually covered by securitisation of the debtors’ book. Sales volumes on major lines were down 7,7 percent from 3 856 units to 3 561 units while the gross profit margin for the quarter was 22,15 percent from 30,1 percent in the prior period.
Credit sales were down 9 percent to make up 68 percent of total sales as compared with 77 percent at year-end in March 2012. There has been a deliberate shift in the credit period from 24 months to 12 months due to the absence of substantial debtors funding. 
Up to 27 percent of the debtors book was above 12 months at year-end and in the first quarter it had been reduced to 6 percent. The debtors book was down 10 percent from the last financial year at US$ 9,4 million. Various discounts are now being offered to customers in an effort to boost cash sales.
But the margins continue to be tight and the market highly competitive. There were no branches closed or opened in the period under review.
In an interview yesterday, Mr Nyambirai said focus would remain on local procurement of furniture.
“Pelhams will continue to buy from local furniture manufacturers other than TN Harlequin, which is just a distributor (to Pelhams). This is meant to ensure that we continue to support local furniture producers and the growth of the economy,” he said.
Nonetheless, Mr Nyambirai said the furniture retailer would also continue to import other exclusive furniture products not available in the country to give its customers variety on the exotic products.
He said after gaining control of the board and management, his directors would take a closer look at the company’s operational and financial position to determine what the listed furniture group requires.
But Mr Nyambirai ruled out the possibility of merging Pelhams with his other furniture focused operations, Lifestyle Holdings, also listed on the ZSE.