TN Holding’s says it is still on track to turn over a minimum of US$50 million by year-end, driven mainly by the furniture segment, TN Harlequin group chief financial officer, George Nyashanu, told an analysts briefing yesterday.
The group said its financial performance improved significantly with the group finally turning the corner to return to profitability recording an first half operating profit of US$7,25 million against a US$1,74 million loss incurred in H1:10.
This also surpasses the December 2010 FY operating loss of US$0,25 million. The group’s loan book also went up by 184% to US$47,16 million whilst total assets almost doubled to US$90,5 million when compared to the same period last year.
EPS went up 181% turning from a negative of 0.43c to a positive 0.78c for the half year.
Turning to the segmental analysis, TN Bank, regarded as the flagship unit recorded a 77,7% increase in net interest income to US$3,53 million whilst the cost to income ratio came down 18% points to 80%.
Deposits went up 180% to US$49,14 million and operating profits increased by 1072% to $1,2 million consequently leading to an improved capital adequacy ratio of 12% up 200 basis points from last year’s figure of 10%.
Interest income dominated total income for the bank with 70% of the incomes coming from lending activities and the remaining 30% coming from non-interest income. The loan to deposit ratio (LDR) for the bank also came down from 111% in last year to 98% whilst the group is targeting an LDR of 70%.
The furniture segment remains the leading contributor to the top line with 55.8% of total revenues.
GP margins for the furniture segment were unchanged at 62% whilst the operating margin improved significantly to 37% from a negative 91% last year.
The drive to acquire some buildings where the retail unit operates from led to a 23% decrease in the occupancy costs.
The stock turnover ratio also went up by three times. One ratio that went up astronomically is the gearing ratio which is now at 42% up from a no gearing position in H1:10 as more debt was assumed to support furniture manufacturing and extension of credit to consumers.
Retail space has increased to 24 720 square metres (m2) up from 16 704 m2 last year whilst sales per square metre went up 418% to US$736 with sales per employee also growing by 463.8% to $17 124 largely as a result of a growth in sales outlets from 21 to 35 and the availability of credit to customers.
The debtor’s book remained impressive with the collection rate now sitting at 96% which is in line with the group’s target collection rate.
Post published in: Business