Investigation shows that as a result of the positive results
from some of the initiatives, the company’s total systems revenue (corporate
and franchise) has grown in the last two years by a minimum of 6% per annum and
is projected to grow further by an additional 10% to N4b in 2017.
According to sources close to the company, to address the
capital structure imbalance which had threatened its business fortunes, the
company two years ago engaged notable consulting groups to assist in bringing
in equity investors and, though the process has been largely stalled with the
economic recession in the country, there has been a renewed interest from both
local and foreign potential investors which is expected to crystallize before
the end of 2017.
“The company is
constantly looking at its cost structure particularly with the high cost of
doing business in Nigeria. To this end, we have reduced outlet space where
necessary in our renovated stores to make us more attractive, compact and
efficient. We will continue to explore more avenues for cost reduction, while
addressing other areas that we are sure will improve our competitiveness”, a
recent media statement from the company stated.
“In the meantime, to manage the existing debt portfolio, the
company has been in discussion with the local banks and IFC for debt
restructuring. The discussions have been positive as the debts are already
being re-structured. The overall effect of this will be seen in the results of
the second half of the year”.
While predicting a strong outlook for the second half of the
year 2017, the company in a recent presentation on the floor of the Nigerian
Stock Exchange said its franchise model which was adopted three years ago is
already yielding positive results.
“In the second half of 2017, we will open 5 additional stores
in virgin territories thereby increasing our total foot print to 65 outlets.
The planned opening of these outlets is an attestation to the strong equity of
the Tantalizers brand and the consumers’ yearning for its location in their
community. This will have significant impact on our market share and further
consolidate our position as a market leader in the industry”.
The company further noted that “based on these ongoing
initiatives and the support from all our stakeholders, we expect to commence
the return to profitability position by the end of 2017 while we project
dividend payment to commence as profitability improves within the next 24
months”.
“As we continue to grow total systems revenue, we will
aggressively pursue over the next five years business expansion through new
outlets, franchising and diversification. With this planned growth, we will
return the company to a healthy profitable position and improve shareholders’
fund to over N3billion in the next three years”, it further stated.
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