BY MISHMA CHAKANYUKA
National Tyre Services (NTS) recorded an increase in profit after — tax to ZWL$570 848 in the year ended March 31, 2019 from ZWL$117 851 last year, driven by improved revenue flows.
Revenue was up 12% to ZWL$15,5 million from ZWL$13,8 million in the previous year.
The group’s gross profit margin improved by five percentage points over the previous year due to a sales mix which was skewed in favour of high-margin premium brands.
In a statement accompanying the company’s financial results, chairman Rutenhuro Moyo said other income, which is largely made up of rentals from the company’s properties, increased by 41% due to rental reviews agreed with tenants.
Total assets grew by ZWL$2,2 million.
“Cripps Road branch in Graniteside, Harare, was refurbished into a bigger and modern shop to become the company’s flagship branch. Samora Machel Avenue and the Kelvin road Graniteside retail branches in Harare were also refurbished and rebranded during the financial year under review,” Moyo said.
“Our customers prefer retreaded tyres on high quality casings to enhance tyre performance. Availability of rubber and good workmanship improved factory retreading turnaround time in line with the company’s customer service excellence,” Moyo said.
Total liabilities increased from ZWL$7,9 million to ZWL$10,1 million during the period.
Moyo said the company expects the recently announced Statutory Instrument 142 to have a positive impact on the economy in the short-term.
“Pricing and accounting are expected to be easier under a single domestic currency and a unified exchange rate framework. However the support of all stakeholders is critical to the success of the currency and other economic reforms the country is undertaking,” he said.
“Long term real growth of the economy will be premised upon increased production and productivity, including an improvement in confidence and the resolution of the external debt overhang.”
The company did not declare any dividend.