Nictus Holdings weathers the storm

Jo-Maré Duddy – Following a few tough years characterised by an economic recession and strained consumers, Nictus Holdings Ltd bounced back and reported a profit of nearly N$18.2 million for the 12 months ended 31 March 2021, an increase of around 147% or N$10.8 million compared to its previous financial year.

The locally-listed group’s performance in its past financial year was nearly back to its 2017 levels.

Dedicating the latest financial results to the late Nico Tromp - a non-executive director, as well as a former managing director and former chairman of group - Philippus Tromp, current group managing director, said Nictus last year faced the Covid-19 crisis “head-on, and plough through the worst parts of it with unprecedented grit”.

“We did not let one of the biggest crises in the history of mankind go to waste,” Tromp said in the results released on the Namibian Stock Exchange (NSX).

Business veteran Nico Tromp (72), also a former chairman of the NSX, passed away on Sunday after contracting Covid-19.

“He has been instrumental in the success and growth of the group, providing invaluable guidance and remarkable leadership both to the board of directors of the company and to the company during his tenure. Mr Tromp was the embodiment of integrity and hard work,” the group paid homage to the leader in an announcement on the NSX.

PERFORMANCE

Nictus Holdings reported revenue of about N$617.2 million in 2021, nearly N$44 million or 7.7% more than its previous book-year.

Operating and administrative expenses were slashed by some 20% year-on-year (y/y) to nearly N$175.96 million. Operating profit came in at nearly N$29.99 million, up about N$10.7 million or 56% y/y.

Nictus Holdings’ retail segments – Nictus Furnishers, TrenTyre Namibia and Auas Motors – reported a total net profit after taxation of just above N$10 million in its past financial year. In 2020, Nictus retail interests suffered a net loss after profit of about N$12.7 million in total.

The group’s property companies also reported a net profit after taxation of nearly N$4.1 million compared to a net loss after taxation of nearly N$1.3 million in its 2020 financial year.

Nictus Holdings’ insurance and finance segments made a net profit after taxation of around N$26.9 million, down about 14% y/y.

Headline earnings per share (HEPS), a profitability gauge, increased by nearly 121% y/y to 29.98c, the highest since 2017.

‘REINVENTION’

Commenting on the past financial year, Nictus Holdings’ chairman Gerard Tromp said: “Fighting through and surviving one of the deepest recessions in history was for certain not an easy task.” Namibia’s overall economy last year grew by -8% on an annual basis.

The chairman added: “The retail segment had a very good recovery from the past years and was profitable for the year under review. Long term strategies set in the past three to five years started realising and we are confident that these will work through in future.”

When the Covid-19 pandemic hit Namibia, Nictus Holdings’ “had to reinvent ourselves within a very short period”, MD Tromp said.

“When the crisis hit we regathered our forces and, since May last year, significant focus was centred on all management levels throughout the group to take ownership of the situation.

“Defeat was simply not an option and, although salary cuts were introduced, it did not stop us to go all-out to reach, and in many cases exceed, our pre-Covid estimates,” he said.

“The employees of the group turned the crisis into an opportunity,” according to the managing director.

“Proactivity was greatly amplified, which helped us to increase our market share in all segments we compete in, with excellent customer service enshrined throughout, and operating more efficiently in our ways and decision-making.”