Furnmart eyes growth despite rising customer debt
Staff Writer | Wednesday May 7, 2025 06:00
The figures on trade receivables, or money it is owed by its customers, were released as part of the Botswana Stock Exchange listed group’s financial results for the six-month period ending January 2025. 'The spike in receivables, net of impairment provisions, reflects continued growth in credit sales over the past two years, which the company says has bolstered its finance and ancillary services income,' its directors noted. Despite the increase in receivables, Furnmart maintains the trade receivable book is adequately provided for, with impairment levels consistent with previous year-end figures
. The value of trade receivables on the group's books grew from P584 million in the year to July 2023 to P636 million recorded in the past financial year. Overall, the group generated P1.0 billion in revenue for the half-year, supported by strong activity during the peak trading period. Operating income stood at P179.4 million, slightly lower as a percentage of revenue compared to the previous annual average but still delivered a healthy profit after tax of P72.3 million. However, profit before tax fell to P93.39 million, a decline from the P150.48 million recorded in the corresponding period. The decline was due largely to heightened investment in trade receivables and inventory, which has also resulted in a drawdown of cash from operations.
During the reporting period, Furnmart expanded its footprint by opening seven new stores while closing one non-performing outlet. The group also reaffirmed its commitment to refurbishing older stores as part of its broader retail strategy. Notably, the company’s P150 million corporate bond has now been classified under current liabilities and is set for settlement in October 2025. Despite the dip in pre-tax profit, Furnmart remains optimistic, positioning itself for future growth with a strengthened credit book and a refreshed retail network.