NTS optimistic

14

NATIONAL Tyre Services (NTS) says it is optimistic that road infrastructure development, continued investment in the productive sector and economic stability will create opportunities for the tyre business.

The company suffered an inflation adjusted loss of $62,2 million for the half year to September 30, 2021 from a profit of $53,5 million in the prior year.
Revenue was $434 million from $287,5 million.
The company, however, says it expects to increase its net profit as economic recovery continues to stimulate infrastructure developments.
Board chairman Rutenhuro Moyo said Zimbabwe will likely find effective measures to stabilise foreign exchange currency, manage inflation and generate enough electricity to power industry.
“Current road infrastructure development and continued investment in productive sectors will create lucrative opportunities for the tyre business. The company will remain focused on ensuring that there are adequate mitigatory measures in place to control the spread of Covid-19, thus complementing business operations in a sustainable manner,” he said in a statement accompanying financial results.
NTS is the largest retailer in Zimbabwe of new tyres and tubes, both imported and locally manufactured.
Moyo said the company’s board deemed it prudent not to declare a dividend due to the need to fund capital expenditure for the retail network expansion and working capital requirements to enhance service delivery.
During the period under review, the company’s sales grew by 51 percent to $434 million from 288 million due to the implementation of the turnaround strategy buoyed by “the right product mix”.
Gross profit improved by 51 percent to $208 million from $138 million, while total operating expenses increased by 58 percent to $399 million due to increase in administration costs incurred for new branches.