HARARE – National Tyres Services Limited (NTS) operating profit grew 31, 3 percent to RTGS$5,3 million for the period up to 31 March 2019 from $4 million in the comparable period last year.
The buoyant financial year saw the tyre making firm posting a modest 12 percent revenue growth to $15, 5 million from $13, 8 in the corresponding period last year.
Profit before tax stood at $765 233 from $251 688 in the prior comparable period as profit after tax jumped 384 percent to $571 000 from $117 851 posted in the last financial year.
In a statement accompanying the financial results NTS board chairman James Moyo said “Gross profit margin improved by five percentage points over the previous year due to sales mix which was skewed in favour of premium brands which have high margins.”
Total assets grew by $2, 2 million due to the refurbishment of the Cripps branch and investment in equipment tools and machinery for the workshops.
This was on the back of improved rental income from the company’s properties registering a 41 percent increase compared to the previous year due to rental reviews agreed with tenants.
Profit from operations grew by $551 592 to $838 060 from $286 468 recorded in the same period last year.
The company however did not declare a dividend for the period under review being considerate of some other critical areas of its business operations.
“In a view of the need to conserve working capital the directors did not declare a dividend for the year ended 31 march 2019,” said Mr Moyo.