TN Financial Holdings subsidiary’s zero-deposit accounts was oversubscribed and resulted in the company failing to meet customers demand hence creating a backlog of 2 000 people who are yet to receive their deliveries, a company official said.
Group chief executive officer Tawanda Nyambirai said the product was subscribed by more than 20 000 people countrywide.
The company launched zero-deposit accounts for civil servants last year where customers would take furniture from TN Harlequin without paying anything.
“There are people who have not received their furniture although they have registered. The backlog will be completed before end of August.
“We are dedicating our manufacturing unit to do those products,” said Nyambirai.
The holdings company said it expects a revenue growth of $50 million this year from a projected revenue growth of $20 million in June this year.
Group chief financial officer George Nyashanu said TN Bank loans and advances rose to $29 million from $23 million in December 2011.
Nyashanu said the group anticipates an increase of 106% in loans and advances to $60 million by year-end while 20 more branches are expected to be opened to increase the number of the 22 existing branches.
The bank advanced at least $17 million consumer loans in the half-year from $7 million for December 31 2010. A total of $30 million is expected to be advanced by the end of this year.
Nyashanu said TN Harlequin posted $11 million in net sales from $13,5 million in December 2010, finance charges were at least $5 million from $1,3 million in December 2010.
Gross sales for the first six months of the year at TN Harlequin rose to $16 million from $14,8 million in December.
Capacity utilisation for case goods, bedding and lounge suites was 70%, 60% and 100% respectively.