Direct marketing group Homechoice increased
headline earnings per share (HEPS) by 15.9% to 218c for the six months
to end-June, the group reported on Monday.
The group, which is divided into retail and financial services operational divisions, said group revenue was up 14% to R1.3bn for the period, driven by growth of 24.3% in retail sales.
Cash generated from operations increased by 19.8% to R174m.
The National Credit Regulator’s (NCR’s) reduction of the maximum prescribed interest rates on credit contracts in May 2016, together with the strategic introduction of a lower interest-earning retail credit facility account, resulted in group finance charges and initiation fees falling 7.5% to R445m, the group said.
The affordability assessment regulations the NCR had introduced, in particular the requirement for customers to provide proof of income, had resulted in significant cost increases and lost revenue for the group.
Retail revenue increased 14% to R997m and 14.2% to R317m at financial services. The customer base at financial services increased by 5% to 149,000 from December 2016.
Homechoice shares were untraded at R31.99 at 9.15am. The share price is down 8.6% so far this year.
BDLIVE - SA
The group, which is divided into retail and financial services operational divisions, said group revenue was up 14% to R1.3bn for the period, driven by growth of 24.3% in retail sales.
Cash generated from operations increased by 19.8% to R174m.
The National Credit Regulator’s (NCR’s) reduction of the maximum prescribed interest rates on credit contracts in May 2016, together with the strategic introduction of a lower interest-earning retail credit facility account, resulted in group finance charges and initiation fees falling 7.5% to R445m, the group said.
The affordability assessment regulations the NCR had introduced, in particular the requirement for customers to provide proof of income, had resulted in significant cost increases and lost revenue for the group.
Retail revenue increased 14% to R997m and 14.2% to R317m at financial services. The customer base at financial services increased by 5% to 149,000 from December 2016.
Homechoice shares were untraded at R31.99 at 9.15am. The share price is down 8.6% so far this year.
BDLIVE - SA
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