FSG eyes further regional expansion

Keikantse Lesemela | Friday August 15, 2014 13:42

 

The Botswana Stock Exchange (BSE) listed company says while the Botswana market was challenging in the first six months of the year, operating performance in Zambia was better, although the Kwacha volatility negatively impacted on Pula revenues.

“In a challenging environment,  especially Botswana’s market, the group’s performance during the first half of 2014 showed good growth in revenue and profit before tax.

“The Group is considering proposals for further regional expansion as part of the Group’s business vision. For the second half of this year the directors are confident that the Group will perform in line with expectations,” said managing director Milivoje Nikolic.

In the published financial results for the half-year ended June 30, 2014, the group recorded an increase in profits before tax by 8 percent to P11.666 million while the revenue   increased by seven percent to P57.872 million. 

Nikolic said although the business environment has been challenging, there have been some promising developments,  like a new branch in Palapye and plans to open another one in Ramotswa.

“During this period, a new branch was opened in Palapye and the results have been encouraging. The group will open a branch in Ramotswa shortly,” said Nikolic.

In Zambia, revenue increased by 11 percent during this period as the number of funerals serviced grew by 13 percent, as compared with 2013 while the number of policies grew by 250 percent.

“Due to volatility of  the Kwacha exchange rate, the results in Pula terms do not reflect the improvement in operating performance of the Zambia operation,” said Nikolic.

However, as the Kwacha weakened considerably the group incurred an exchange loss on investment made. Nikolic said the group, in line with its strategy, is now planning to open new branches in around Zambia. Total assets exceed P230 million as the group continues to expand its operations in Botswana and Zambia.

“For the second half of this year, the directors are confident that the group will perform in line with expectations,” said Nikolic.

FSG is the biggest funeral services provider in Botswana and recently expanded to Zambia. the Funeral Services Group is made up of Lyn’s and Kagiso Funeral Parlours and M&N Coffin and Casket Manufacturers.