Green shoots in Nictus’ financials
Cutting operative and administrative expenses was the main force behind the 46%-jump in Nictus Holdings’ interim operating profit.
Jo-Maré Duddy – Locally-listed Nictus Holdings yesterday reported profits for its retail, property, as well as insurance and finance segments – the first time since 2016 the group has boasted green interim figures across the board.
Nictus Holdings, which celebrates its 75th anniversary this year, reported a profit of about N$2.1 million for the six months ended 30 September 2020, up nearly 86% or N$978 000 from the same half-year in 2019.
Cutting operative and administrative expenses was the main force behind the 46%-jump in operating profit to about N$6.6 million. Nictus cut these expenses by nearly 14% year-on-year (y/y) – from about N$103.4 million to nearly N$89.2 million.
The group drove expenses lower without cutting a single job during the period under review, the managing director of Nictus Holdings, Philippus Tromp, told Market Watch yesterday.
Tromp said the group has been busy with a major growth strategy and was well prepared when Covid-19 hit Namibia.
“Our people were geared, trained and willing to adapt. We could react fast and act quickly.”
Tromp said Nictus Holdings was “firing on all cylinders” and working with a long-term plan.
“We are very thankful,” Tromp said.
‘VERY CHALLENGING’
In its results report released yesterday on the Namibian Stock Exchange (NSX), Nictus said trading conditions in the first six months of its current financial year were “very challenging, especially due to the impact of the Covid-19 and the resultant lockdown” in the country.
This is evident from revenue figures.
The group reported total revenue of about N$285.5 million for the past half-year, down around N$31 million or 9.8% compared to the same period in 2019.
Nictus’ retail segment was hit worst, recording a revenue drop of 13% y/y to nearly N$243.8 million. The property segment generated revenue of nearly N$11.05 million, 3% lower y/y. Insurance and finance generated revenue of about N$49.04 million, a decrease of 10% y/y.
PROFITABILITY
Nictus’ headline earnings per share (HEPS), a profitability gauge, rose by 84% from 2.17c to 3.99c.
Basic and diluted earnings per share (EPS) came in at 4.04c, up 86% y/y from 2.17c.
Nictus’ board proposed no interim dividend. Ordinary dividends of 12c per share were paid on 24 August, totalling N$6.4 million.
At the end of September, Nictus’ total assets exceeded N$1.695 billion, up 3% from September 2019.
The group’s cash and cash equivalents at the end of the period under review were more than N$248.7 million, nearly 34% less than the end of September 2019.
Nictus said various promotions and special transactions were planned and implemented during the first six months within the retail segment.
“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,” the group said.
“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,” Nictus said.
Nictus Holdings is listed on the Local Index of the NSX. On Wednesday, Nictus’ market capitalisation by total shares in issue was N$85 million.
The group closed Wednesday at N$1.59 per share. The share price has shed 0.6% since the end of 2019.
Nictus Holdings, which celebrates its 75th anniversary this year, reported a profit of about N$2.1 million for the six months ended 30 September 2020, up nearly 86% or N$978 000 from the same half-year in 2019.
Cutting operative and administrative expenses was the main force behind the 46%-jump in operating profit to about N$6.6 million. Nictus cut these expenses by nearly 14% year-on-year (y/y) – from about N$103.4 million to nearly N$89.2 million.
The group drove expenses lower without cutting a single job during the period under review, the managing director of Nictus Holdings, Philippus Tromp, told Market Watch yesterday.
Tromp said the group has been busy with a major growth strategy and was well prepared when Covid-19 hit Namibia.
“Our people were geared, trained and willing to adapt. We could react fast and act quickly.”
Tromp said Nictus Holdings was “firing on all cylinders” and working with a long-term plan.
“We are very thankful,” Tromp said.
‘VERY CHALLENGING’
In its results report released yesterday on the Namibian Stock Exchange (NSX), Nictus said trading conditions in the first six months of its current financial year were “very challenging, especially due to the impact of the Covid-19 and the resultant lockdown” in the country.
This is evident from revenue figures.
The group reported total revenue of about N$285.5 million for the past half-year, down around N$31 million or 9.8% compared to the same period in 2019.
Nictus’ retail segment was hit worst, recording a revenue drop of 13% y/y to nearly N$243.8 million. The property segment generated revenue of nearly N$11.05 million, 3% lower y/y. Insurance and finance generated revenue of about N$49.04 million, a decrease of 10% y/y.
PROFITABILITY
Nictus’ headline earnings per share (HEPS), a profitability gauge, rose by 84% from 2.17c to 3.99c.
Basic and diluted earnings per share (EPS) came in at 4.04c, up 86% y/y from 2.17c.
Nictus’ board proposed no interim dividend. Ordinary dividends of 12c per share were paid on 24 August, totalling N$6.4 million.
At the end of September, Nictus’ total assets exceeded N$1.695 billion, up 3% from September 2019.
The group’s cash and cash equivalents at the end of the period under review were more than N$248.7 million, nearly 34% less than the end of September 2019.
Nictus said various promotions and special transactions were planned and implemented during the first six months within the retail segment.
“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,” the group said.
“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,” Nictus said.
Nictus Holdings is listed on the Local Index of the NSX. On Wednesday, Nictus’ market capitalisation by total shares in issue was N$85 million.
The group closed Wednesday at N$1.59 per share. The share price has shed 0.6% since the end of 2019.
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