Furmart Holdings, the emerging regional appliances and home-ware legion, saw its profits beating its own expectations but warned of dark clouds of subdued economic climate in the key market,┬áBotswanaÔÇö┬áwith a silver lining in the last quarter of the year.
The colour coded┬áhalf year results to January 31, 2011, are underpinned by impressive revenue growth and earnings per share that gives confidence to the market about the future prospects of the company.
Furmart is aimed at increasing its footprint across the region, including Botswana, Namibia, South Africa and Zambia. It is one of┬áthe best┬áBotswana brand exports with over 80 outlets┬áacross the region,┬ácompeting head to head with its South African counterparts.
The Mynhardts┬áare┬áthe father and son acting as chairman and managing directorÔÇögave the six months results a stamp of approval by appending their signatures which showed growth of their business empire.
The results showed an┬á improvement in┬á the┬á an unaudited of 21 percent to P 424.8 million┬á while basic earnings per shareÔÇöthe guiding principle in business performance and shareholders’┬á valueÔÇöwas faster by┬á 26 percent to┬á 92.65 thebe compared to the corresponding period last year.
The group, headed by the older man, John Mynhardt, the down-to-earth┬ábut one of the top wealthiest man, is planning to┬ágrow its outlets across the region.
Mynhardt is a prolific businessman with┬ádirect interest in CB Stores,┬áHome Corp, Taku Taku, Koko,┬áRiverwalk Mall,┬áMafenyatlala Mall and Kwando Safaris in the northern part of the country and South Africa.
┬áHe also has some interests in┬áMolapo Crossing Mall as well as owning properties wherever his businesses operate.
“The group will focus on improving the structure in order to support growth and it is currently busy consolidating its South African administration and warehousing operations into one large distribution centre in Isalando.
“The move is expected to significantly reduce supply chain drag and will enable the group to maintain its growth tempo without sacrificing efficiency,” Mynhardt co-signed the statement with his son, Tobias.
He said Furmart will adopt a business opportunistic┬ámood in its future growth strategy across the┬ásouthern African region where it already operates.
In South Africa, the┬ágroup is undergoing some re-branding┬áfrom Xtreme store to Furnmart and is geared to benefit from the larger South African population which tops 40 million but it will┬áface resistance from some of the already existing┬áand┬áJohannesburg Stock Exchange listed stores such as Ellerines and┬áJoshua Doore, which have close to 200 outlets in that country alone. The same applies to Zambia, which has a population of over 11 million people.
The company declared dividend of┬á30.88 thebe┬áa piece.