adminfurniture and financial products.
Presenting financials for the half year to June, TN projected revenue to grow by 66 percent by December 2011 from US$30 million in the interim period.
To that end, production capacity was seen at 70 percent in the case goods, 60 percent in the bedding and 100 percent in the lounge suite divisions.
At the half-year stage, capacity utilisation stood at 50 percent in the case goods, 40 percent in the bedding division and 50 percent in production of lounge suites.
Group finance officer Mr George Nyashanu in June said bank deposits would top US$100 million by year-end from US$53 million in first six months.
The group had also forecast TN Bank’s loan book to reach US$60 million by the end of the year from US$29 million in the six months to June 2011.
Furniture sales were seen at US$26 million from US$11 million in the interim. Total sales for the year to December 2010 stood at US$13,5 million.
Chief executive Tawanda Nyambirai said in an interview yesterday that the group was on course to achieving its year-end revenue, profit and operational targets.
TN posted US$5,7 million after tax profit in the interim.
“We are close to reaching our projections. (In terms of the bank branch network) we have not opened all of them, but we have managed all the important ones, including Beitbridge, Victoria Falls and Triangle,” said Mr Nyambirai.
Mr Nyambirai said the Zimbabwe Stock Exchange listed financial services group can “now safely say we have nationwide (bank) branch network”.
And the group contends its banking mall concept, where customers access capital at the point where they make the decision to buy furniture, would be central to the group’s push for more revenue and profits.
Mr Nyambirai said the solid performance during the half-year period was evidence the TN banking mall concept would deliver the firm’s objectives.
“Its convenient and successful model, which achieves the objectives of our group. A careful analysis of our half-year results indicates success of the banking model. The deposit base has grown significantly,” he said.
In the half year Mr Nyashanu said consumer loans would top US$30 million from US$17 million in June 2011 and US$7 million achieved last year.
The growth was seen in the context of plans to increase the TN Bank branch network from 22 in June to 40 in December after countrywide expansion. TN has been working on a number of innovative products as it seeks to enhance revenue and profitability.
New innovative products in its plans included mobile banking and extending financial services to remote rural places.
Online Reporter