Axia Corporation up its stake in automotive spares distributor Transerv

Axia Corporation Limited ( 2018 Presentation - AfricanFinancials

ZIMBABWE – Specialty retail and distribution group Axia Corporation Limited, has increased its stake in automotive spares company Transerv to an effective 51 percent shareholding from 26,01 percent.

The acquisition, effective January 1, 2020 was done through the group’s wholly owned subsidiary domiciled in Mauritius, Excalibur Mauritius Limited for a purchase consideration of US$900,000.

Read also: Sasol To Sell Part Of Lake Charles Business To LyondellBasell For $2bn

Group chairman Mr Luke Ngwerume, indicated that goodwill amounting to $15,63 million was recognised at the date of the transaction.

Axia Corporation operating profit doubles - Business Daily News Zimbabwe

“This acquisition will enable Transerv to pursue strategies that maximise shareholder value with further alignment and support from the Axia group which will enhance the long-term returns,” said Mr Ngwerume in a statement accompanying the group’s financial results for the year to June 30, 2020.

“As a result, the group has consolidated the results of Transerv with effect from 1 January 2020,” he said.

According to the group, Transerv remained profitable despite a challenging year characterised by economic volatility.

“The operating environment was volatile and presented a number of challenges characterised by the weakening Zimbabwe dollar, re-emergence of hyperinflation, shortage of foreign currency and liquidity constraints that led to reduced consumer disposable income and demand,” said Mr Ngwerume.

This was worsened by Covid-19 which resulted in reduced business hours with the retail services closing for almost the whole month of April in compliance with lockdown regulations.

For Transerv, the business had to endure a month of national lockdown with no business activity thus significantly affecting the year’s revenue and volumes.

Overall, the business suffered a volume decline of 38 percent compared to prior year.

This image has an empty alt attribute; its file name is GFA-Contributors-1024x576.jpg

However, the strategy to focus on fast-moving stock lines and managing operating costs despite inflationary pressures helped the business to remain profitable.

An operating profit growth of 274 percent was achieved against prior year.

Axia Corporation up its stake in automative spares distributor Transerv |  AFRICA INC. MAGAZINE

Despite the adversities, the business maintained its 24 trading outlets, 15 Fitment Centres, a diesel pump room (ADCO), Clutch and Brake Specialists (CBS) and an Autocycle Centre. Renovations were completed on 5 retail outlets and 5 fitment centres to enhance customer experience.

Despite the economic uncertainties compounded by Covid-19 pandemic, the group is upbeat of good performance driven by volumes as the group consolidates its market share.

“In the coming year, management will continue to explore ways to improve volumes as well as expanding the store footprint”, said Ngwerume

Axia Corporation Limited operates within the speciality retail and distribution sector with dominant businesses across retail of household goods and appliances, retail of automotive goods and distribution of fast moving consumer goods.

Read full article here

GetFundedAfrica’s mission is to uplift people and economies in Africa through entrepreneurship; helping companies find funding, grow, create jobs and solve society’s greatest challenges

GFA Attract, GFA Weekly Recap & Application Portal For Funding

GFA Weekly Round- up Podcast

In this week’s weekly round up podcast, Nichole discussed about the funding activity between September 28- October 2
Listen Here

GFA Attract Interview

Victor Boyle-Komolafe, the co-founder of Garbage In, Value Out (GIVO), a system that automates and digitises the collection, processing, and sale of recyclable materials. Watch Here

Apply For Funding

GetFundedAfrica provides equity capital from $1,000 to $50,000.
For larger amounts (Above $50,000)
we organize syndicated funding rounds of up to $500,000.
Apply Here

Follow Us

See the source image
See the source image

“Entrepreneurs have to learn the power of networking and the value of mentorship, as these are the things that most entrepreneurs take for granted. And also they must know that opportunities will not come to them; they have to go out there and create them by knocking on corporate doors with proposals. Personally, I am where I am because of a business mentor who changed the way I see things.”

– Anda Maqanda, founder of AM Group in South Africa

Nichole Manhire

Is the media and brand manager at GFA News. She works very closely with editors and podcasters that contribute to telling the African business success story. For marketing and advertising send Nichole an email:

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button