Obtala Resources Limited African Home Stores Introduces Apple to Lesotho (4218D)
January 29 2015 - 2:01AM
UK Regulatory
TIDMOBT
RNS Number : 4218D
Obtala Resources Limited
29 January 2015
29 January 2015
Obtala Resources Limited
("Obtala" or the "Company")
(AIM: OBT)
African Home Stores Introduces Apple to Lesotho
Obtala Resources Limited (AIM:OBT), the vertically integrated
agri-processing, farming, timber and retail company, is pleased to
provide a brief update on activities relating to African Home
Stores in Lesotho.
Trading Update
Since the acquisition of Lifes' Comfort Solutions ("LCS") and
its chain of shops in Lesotho on the 23(rd) October 2014 to the
31(st) December 2014, LCS has generated revenues of M24.4 million
(US$2.1 million). This is in line with our expectations and gives a
gross profit margin of 21%. We have taken significant steps to
improve these margins and expect these to increase through a
process of improved buying, new suppliers (both regionally and
internationally) together with optimising stock and inventory
management We are confident of LCS' success going forward.
LCS has agreed terms with a supplier to open the first iStore
for Apple consumer technology products within the country. There
will be a specifically designated area within the LCS shops with
shop fitting which will be funded by suppliers commencing in
February 2015. We expect the successful launch of iProducts in
Lesotho to significantly enhance our IT and telecoms revenue and
customer foot fall generally. Also, LCS is currently re-negotiating
agreements with MultiChoice, the regional satellite TV provider, to
increase the revenue received for services provided by LCS to
MultiChoice.
Additional Outlets
LCS has also now signed binding terms for lease agreements on 2
additional outlets within Lesotho (totalling 7 units) and a further
unit in Bloemfontein, South Africa to facilitate and expand the
customer base, revenues and profitability. These new units will be
operational in Q2 2015, and will be expected to add approximately
15-20% to the overall sales revenues on a monthly basis.
LCS is also in the process of establishing a workwear wholesale
section which will seek to supply into Government contracts, the
mining industry and private sector businesses.
Managing Director's comment
Simon Rollason, Managing Director, commented: "We are pleased to
provide this update on African Homes Stores to our shareholders.
Revenues and margins are very encouraging and the improvements in
buying and cost management will generate higher margins going
forward. The implementation of improved management policy and
procedures, particularly focusing on stock and inventory control
and re-ordering systems will provide for better cost efficiencies.
The introduction of the Apple product range is an exciting
opportunity to bring a truly international brand name to Lesotho.
Our intention is to use the business model in Lesotho as the
blueprint for rolling out the business into neighbouring states in
2015. We continue to advance the other segments of our vertically
integrated business and look forward to providing further updates
as these project plans develop."
Obtala Resources
Francesco Scolaro - Chairman
Simon Rollason - Managing Director
www.obtalaresources.com +44 (0) 20 7099 1940
ZAI Corporate Finance Limited (Nomad) +44 (0)20 7060 2220
Ray Zimmerman
Richard Morrison
Brandon Hill Capital (Broker) +44 (0)20 3463 5000
Jonathan Evans
Square 1 Consulting (Public Relations) +44 (0)20 7929 5599
David Bick
Mark Longson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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