The insurance and finance segment of listed
Profits are continuing on a downward trend, this time around down by at least 37%.
This and more is included in the recently released interim unaudited financial statements for the six months ending
Overall, with consumer spending still under pressure, profits for the whole group dipped and when compared to the 2018 six-months period, profits now only stand at N$1,1 million, from an all-high N$1,8 million.
The three segments - retail, property, insurance and finance made a N$6,3 million loss, N$2,5 million loss, and N$13 million profit, respectively, shifting away from growth that the company had predicted last year.
When compared to the same six months last year, the insurance and finance profit increased by 17% from N$11 million, the retail segment's loss decreased by 14% from N$7,3 million, while losses in the property segment skipped up by a whopping 38% to reach N$2,5 million from N$1,8 million.
At the release of the final 2018 financials, The Namibian reported that the insurance segment has over the years become a saviour to the group, as the other segments have been recording losses over the previous periods.
With a footprint of over 30 offices/outlets countrywide, Nictus is the parent company of Trentyre Namibia,
Analysis shows that revenue for the three segments dropped, with the retail sector showing the biggest revenue fall of 22%, followed by properties at a 14% decrease, and then the insurance segment at a 12% fall. Combined, revenue fell by 22% to now stand at N$316 million, from N$406 million earned in the first six months of the 2018 financial year.
Revenue for the 2018 full financial year stood at N$677 million, while profit was recorded at N$7,1 million. These are all indicative that should the same environment which caused the group to earn such revenue and profit continue to exist in the remaining six months of the 2020 financial year, profit and revenue all should be expected to drop by significant margins.
On assets, the insurance and finance segment continues to lead the assets pack at N$1,4 billion, followed by properties at N$390, and the retail sector at N$248 million.
The total N$1,6 billion asset base after eliminating inter-office transactions is largely matched against a N$1,3 billion insurance contract liability, amongst other liabilities, all lower than N$300 million after accounting eliminations.
There were no dividends declared for the six months ending
On future prospects, the company said various promotion and special transactions have been planned and implemented during the first six months within the retail segment, and they are bearing fruit.
"The initial results of these actions have been positive. The constant drive to achieve higher investment returns, even if only marginal, will remain a focus area. Traditionally, the majority of the group's earnings have been generated during the second half of the financial year, and the expectations are that this trend will continue during this financial year," said the company.
Earnings per share for the six months ended
The share price as of last week Friday was N$1,60, and no one bought or sold Nictus's shares the whole of last week on the
The full financial statements are available on Nictus' website.
Copyright The Namibian. Distributed by AllAfrica Global Media (allAfrica.com)., source