AXIA has recorded a 16,6% decline in profit after tax to $7,8 million for the six months ended December 31, 2016 despite a rise in revenue on increased overheads.
BY BUSINESS REPORTER
In the same period in 2015, profit was $9,3 million.
In the period under review, revenue grew by 14% to $119,5 million from $104 million in 2015.
In a statement accompanying the group’s unaudited financial results, Axia Corporation Limited chairperson Luke Ngwerume said the six months under review have been challenging for the group, characterised by depressed consumer spending in certain sectors, liquidity constraints, difficulties in securing import permits and delay in making foreign payments to suppliers of goods and services.
Ngwerume said despite these issues, the group has produced a good set of results by managing to secure, in most cases, a reasonable supply of goods.
“The current environment will necessitate the group taking action in managing resource allocation proactively, settling high risk foreign creditors and managing relationships with suppliers of goods and financial services with regards to efficient sourcing of and payment for, inventories.
“The group remains confident and will continue to operate profitably despite the tough trading environment,” he said.
During the period under review the group reported an operating profit of $11,154 million and a profit before tax of $10,690 million was recorded.
Basic earnings per share for the period amounted to $0,74 cents, while headline earnings per share at 0,74 cents was 3% above the comparative period.
The group capital expenditure for the period totalled $643 000, while net borrowings decreased by $1,05 million due to increased cash sales in the furniture and electronic appliances retail operations.
The operating business units in the Axia Corporation Group are TV Sales and Home, Transerv and Distribution Group Africa.
Ngwerume said in the outlook, focus would be revenue generation, increasing vigilance on trade receivables collection, securing inventory to ensure adequate offering to customers and managing cost to protect profitability.
“The group will pursue the objective of retailing quality products and providing exceptional service to the satisfaction of its customers,” he said.