Furnmart, Botswana’s top furniture retailer shrugged off trading conditions—that led to high impairment charges to hit a record turnover although profits were eaten by currency fluctuations.
The listed company said in its financial year ended 31 July 2013 that revenues amounted to P1.1 billion, a 13 percent increase on last year’s P987.6 million.
However, the company said profit after tax for the year is 1 percent below last year largely on account of two factors.
“First, there was a P10.7 million negative movement on account of a 9 percent depreciation of the South African Rand and Namibian Dollar against the Pula for the year,” the company said in a statement accompanying the results.
“Second, there was a P4.3 million gain on a sale of property in last year’s financials. As the foreign operations become a bigger part of the business, foreign exchange fluctuations will have a larger potential impact on results,” the company said in a statement accompanying the results.”
“Furnmart Limited gained IFSC certification effective 11th April 2013, whereby the company is eligible for discounted corporate tax in Botswana on its income from all sources outside Botswana,” reads the statement.
The company also revealed that the roll-out of the new IT system is underway in the Botswana Furnmart stores and this will continue into the other business units during the course of the new financial year.
“This system will improve efficiencies throughout the operations, in particular in the area of credit granting,” said the company.
The group pointed out that it has undergone a few years of consolidation which have seen the establishment of a distribution centre in Johannesburg, the implementation of a new IT system, the strengthening of the senior management team and the setting up of new business units.
It added that these foundations will facilitate acceleration in the group’s growth with 10 more new stores, including one Home Corp planned for this year should appropriate sites become available
The statement indicated that in line with the group’s dividend policy, a gross final dividend of 2.50t per share was declared on 30 October 2013 and is payable to shareholders registered on the 15 November 2013 for payment on or before 29 November 2013.
The furniture retailer which has operations also in South Africa saw its total assets increase by 14 percent to P844mn as eight more stores were opened for the period under review.