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Axia Corporation says group turnover for the first quarter to September 30, 2016 is 12 percent up on the same period last year on increased contribution from TV Sales and Home as well as Distribution Group Africa (DGA).Giving a trading update at the company’s inaugural annual general meeting after its unbundling from Innscor, chief executive John Koumides said the group envisages the macro-economic environment to remain difficult, but the company has a strong balance sheet to enable it to pursue growth opportunities. After tax profit for the quarter was flat while headline earnings were maintained in the region of 4 to 5 percent.

“Overall, we are confident performance in the year will be fair as that of prior year,” he said.

During Q1, turnover at TV Sales and Home was 30 percent up on last year same period and has also registered significant growth in October and November. The group expects to maintain the growth in the year going forward. TV Sales and Home has 38 shops and its turnover is around 25 to 30 percent of group revenue.

At Transerv, turnover was down 10 percent largely as a result of the challenges with accessing battery imports following the promulgation of Statutory Instrument 20 of 2016 meant to control cheap battery imports. Mr Koumedis said the group had lobbied to Government and had received some concessions. “As a result, the unit is now performing well and we are certain over time it will perform profitably,” he said.

DGA turnover for the quarter was up 17 percent but low on margins. DGA has operations in Zimbabwe and the region with core capital of about $99 million in Zimbabwe and $25 million in the region.

DGA operations include inbound clearing and bonded warehousing, ambient and chilled warehousing, logistics, marketing, sales and merchandising services. It owns two warehouses measuring 10,000 square metres and leases five warehouses measuring 27,300 square metres and has a fleet of 65 vehicles.

Meanwhile, Mr Koumides said the introduction of bond notes into the basket of currencies will bring increased turnover to the business.

“Bond notes are just same as cash and these will increase our turnover as we have seen an increase in RTGs transactions,” he said.

At the AGM directors and audit fees were approved at $7 040 and $5 000 respectively. — Wires.