NICTUS Holdings Limited’s insurance and finance segment has again led the group to taste profits for the 2019 financial year.
Gerard Swart, the group’s chairman, revealed this when the company released its annual report last week.
“The insurance segment once again contributed largely to the overall profit of the group. Other segments performed better than the previous year, although still not profitable,” he said.
Year-on-year, overall group revenue decreased from N$831 million to N$677 million, which the company attributed to the difficult prevalent economic times in the local economy.
The revenue figure has been decreasing over the last five years, from just above N$1 billion in 2015 to N$677 million this year.
Although revenue decreased, the gross profit margin increased from 25% to 29% year-on-year, showing that the company did away with certain procurement inefficiencies. Gross profit for 2019 stands at N$194 million, from N$210 million recorded in the previous year.
In addition to their popular Nictus furniture retail outlets, local companies such as Trentyre Namibia, Auas Motors and Hakos Capital and Finance fall under the Nictus group. The group has operations in 14 towns, with a portfolio of more than 30 outlets/offices countrywide.
Segment-wise, the retail and property companies who made up N$615 million of total revenue made a combined loss of N$13 million, set off by the insurance and finance segment which pocketed a profit of N$23 million, resulting in the group having a profit of N$7 million after the segments were consolidated.
The insurance and finance segment has the biggest share of liabilities at N$1,3 billion, just slightly lower than their assets at N$1,4 billion. Total assets and liabilities stand at N$1,7 billion and N$1,5 billion, repectively.
In April this year, Nictus appointed former PwC Namibia advisory partner and current chief financial officer of Namibia Wildlife Resorts Talita Horn to its board of directors.
Directors’ emoluments decreased from N$19 million in 2018 to N$15 million in the current year.
DIVIDENDS
The company has declared a 12 cents per share dividend for the year, expected to be paid from retained earnings. The company will cough up N$6,4 million to cater for its 52 million share book. Earnings per share for the year stand at 13 cents per share.
The N$6,4 million is about 7% of total retained earnings, now standing at N$92 million. The highest dividend the company ever paid was in 2015 and 2016 at 18 cents per share.
This dividend will be paid out on 22 July 2019. Non-Namibian residents will be subject to dividends tax at varying rates where double taxation agreements exist, and where not, a final tax of 10%.
JUNE TRADING
No one bought or sold Nictus shares for the month of June 2019 as per the Namibian Stock Exchange’s monthly statistics, and the share price was flat throughout at N$1,60 cents per share.
PROSPECTS
Group managing director Philippus Tromp said results of this kind have somewhat become the new norm, and the company is aligning itself to economic difficulties.
“Inefficiencies had to be addressed, and processes and systems needed to be realigned,” he noted.
He added that despite a total decline of 18,5% in their turnover, the group reported a 27% increase in profit after tax from the N$5,5 million attained in the previous financial year.
Tromp said although the future looks bleak, their adoption strategy and cutting out inefficiencies would see them through.
“I do not foresee any major upswing in the near future. Growth lies in adapting to the environment, and rooting out inefficiencies within our own businesses,” he said.
Nictus will hold their annual general meeting on 29 August 2019.
– lazarus@namibian.com.na; Twitter: Lasarus_A
