TV Sales acquires Restapedic

HARARE - TV Sales & Home (TV Sales) has acquired bed manufacturer Restapedic Bedding (Restapedic) for an undisclosed fee.

The furniture retailer’s parent company, Axia Corporation (Axia), said the acquisition was anticipated to see the furniture retailer export into the region, while hinting there were two more acquisitions on the way.

“We bought one of the suppliers of TV Sales. We got a significant stake in Restapedic Bedding. This will also present an opportunity for exports and to earn forex as well,” Axia group chief executive John Koumides said.

Restapedic was formed in 2010 but has been making beds for the last 15 years and produces a full range of beds for both the local and northern markets. The bed maker’s main export markets are Zambia and Malawi.

According to its website, Restapedic mostly produces for the retail trade but has also supplied large hotel chains and schools, with the firm essentially manufacturing six different levels of beds to suit all budgets and comfort levels.

In the year ended June 2018, TV Sales achieved a 19 percent increase in units sold over the prior year, translating to a turnover growth of 36 percent driven by a significant increase in both cash and lay-byes, amid indications the Restapedic acquisition will also boost bottom-line.

Meanwhile, Koumides said despite a tough trading environment, the group was looking at a string of acquisitions to take advantage of the economic headwinds.

“As a group we are looking at other extensions into the retail sector… The board is considering two particular interests. It is a hard time to dream but they also say it is the best time to dream,” he said.

The Axia boss highlighted the speciality retail and distributing group was performing above expectations, amid indications it was poised for another profitable year, after recording a 31,2 percent increase in profit after tax for the year ended June 2018.

In the full year to September, Axia managed to achieve a revenue growth of 31 percent to $275,9 million with the group placing its focus on reducing its foreign creditor position andsecuring additional inventory as a way to ensure superior offerings to customers

Although this resulted in a significantly changed working capital profile, the group managed to generate cash from operating activities.

In the year to June, Axia’s basic and headline earnings per share amounted to 2,02 US cents, with headline earnings came in 47 percent above the comparative period and when adjusted for income earned on the derivative option, were 28 percent above prior year at 1,76 US cents.

Axia also recently reassessed its position of control at Transerv, where the group has an effective 26,01 percent share.

 

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