Monday, October 19, 2020

FurnMart delays releasing financials as it winds up Zambian operations

FurnMart, the giant furniture retailer and home appliance company, has confirmed that its full year financial results will not be published on time. The Botswana Stock Exchange (BSE) quoted company has as such cautioned its shareholders to exercise caution when dealing in ordinary shares of FurnMart Limited until the results are released.

In line with the BSE regulations, FurnMart, which also trade as Home Corp was required to have published its financials by the last day of October 2016.

Late last week, Tobias Louis John Mynhardt, the group’s deputy chairman explained that due to a recent decision by the company to close down its operations in Zambia, the results will now only be published not later than 28 November 2016. 

FurnMart which also trades in Zambia as Home Corp has announced that it is closing its loss making businesses in Zambia, a move that will see around 350 Zambians losing their jobs.

“The Company commenced the winding up of the Zambian operations on the 1st November 2016. Management is confident that this will have a positive impact on future profitability. Management expects to release the audited abridged consolidated financial statements for the year ended 31 July 2016 by no later than Monday the 28th of November 2016”, reads part of Mynhardt’s statement. 

The decision by management of FurnMart to close down the Zambian operations follows concerns about FurnMart’s future in both the local and the Zambian market.

The group’s performance for the financial year ended 31 July 2015 shows that it recorded profit before tax which was 18.6 percent lower than the prior year mainly as a result of lower gross profit margins and higher operating expenses.

“The difficult trading conditions in the region and the currency fluctuations have had an impact on these results. However, management believes that the fundamentals of our respective business units are sound and that these businesses are well positioned to take advantage of future economic improvement. The Zambian business unit remains a challenge. The Group’s Home Corp model in South Africa also requires refinement,” the group said in a management analysis accompanying the interim results. 

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