Furnmart, the giant furniture retailer and home appliance company, has confirmed that its full year financial results will not be published on time. The company says as such, “A request for extension of time for this publication has been submitted to the Botswana Stock Exchange.”
The Telegraph has been informed that the delay has been caused by the adoption of the new IFRS standard 10 requirements and the resultant change in accounting of cell captive arrangements by the South African and Namibian subsidiaries of the company. The two subsidiaries have since postponed the finalising of their results.
“These restatements will not have any impact on prior years’ reported PAT.”, Furnmart said in a statement released to the market this week.
In May this year, Furnmart┬áwarned its peers in the market that it would increase its footprint in the country by opening additional stores. The retailer also expects its full year revenues to register real positive growth.
The group, which operates its stores under the banner┬áFurnmart and Home Corp said four more will be added to the existing 49 stores as it looks to cement its position in the market.?“We plan to open two Home Corp stores and four more Furnmart stores by the financial year end and anticipate the growth momentum to continue in the foreseeable future subject to availability of suitable premises,” said Furnmart in statement as it released its half year results for the period ending 31 January 2014.
The company said it opened one Home Corp and one new Furnmart store during the first half of the financial year and also successfully rolled out a new system to all Furnmart stores in Botswana during the period under review.?┬á“We expect the system to be rolled out to the remainder of the Furnmart stores by the end of the financial year,” said Maynhardt.?Furnmart revenue went up 8 percent from P572.9 million to┬áP617.1 million while profit before tax rose 7 percent from P77.1 million to P82.2 million.
The retailer said as a result of an 11.4 percent appreciation of the Pula against the Rand, the mid-year accounts include a substantial exchange loss on the Pula value of our foreign assets.?┬á“Excluding the above exchange loss, profit before tax was up by 17.9 percent on a comparable basis. This performance reflects the continuing turnaround in the performance of our business units in RSA and Zambia.
Our business in Namibia continues to perform satisfactorily, whilst consumer demand in Botswana remains under pressure,” read the Furnmart statement.?┬áThe company put smiles on shareholders’ faces as it has declared a┬ágross interim dividend of 3.21thebe per share in 24 April 2014.