NTS remodels business
CLOUDINE MATOLA
National Tyre Services Limited (NTS) says it is committed to completing its business recovery strategy, which is premised on reorganising the business and implementing a number of cost-cutting measures.
Stewart Mandimika, the company secretary, revealed this and expressed optimism that the government’s new tax laws will lessen unfair competition in the market.
“The company is optimistic that the new regulations on tax introduced by the Government to enforce compliance will minimize unfair competition in the market. NTS is focused on full business recovery premised on remodelling the business and continued implementation of a raft of cost-cutting measures introduced during the year,” Mandimika said.
A trading update for the quarter to December 31, 2023 indicated that NTS achieved a 19% sales volumes growth for new tyres to 10 528 from 8 847 due to the marketing initiatives which were introduced.
However, volumes for retreaded tyres marginally dropped by 2% to 3 030 in the period under review from 3 081 reported in the same period in the previous year, largely due to production disruptions caused by electricity challenges.
The company’s tyre services trade also improved significantly by 11% to 30750 in the quarter under review from 27679 which was reported during the same period in the previous year.
“Tyre services sales in units increased by 11% during the period under review when compared to Q3 of 2022. Growth in tyre services was premised on increased volume of new tyres,” said Mandimika.
