Nictus Limited. JSE: NCS

Nictus shares

Background of Nictus

  • Nictus Limited is a South African furniture, electrical appliances and home electronics retailer, with retail functions carried out by the Nictus Furnishers brand. The group also offers short-term insurance through the Corporate Guarantee brand. Nictus currently owns and manages three furniture retail stores in Randburg, Polokwane and Makhado, targeted primarily at the expanding middle to higher income black customer base. The group aims to provide quality local and international brands for customers to buy at affordable prices.

  • The group’s history can be traced back to 1945, with the selling of new furniture first commencing in Namibia in 1955. The Randburg store was established in 1983, and Corporate Guarantee was established in South Africa in 2002. Nictus Limited was formed when the Namibian operation was unbundled from the group in 2012, leaving the South African operations under a separate entity. A large proportion of sales are accounted for by credit customers, with a high level of recurring sales occurring in both the furniture and insurance divisions. Corporate Guarantee offers a unique approach to short-term insurance through the alternative risk transfer model.

  • Today, Nictus shares are listed on the Johannesburg Stock Exchange (JSE) with a market cap of R34 million. The live online stocks chart shows that Nictus share price has stuttered on the JSE.

Nictus Shares Growth Driver

  • After several difficult years, Nictus went through a restructuring process and enjoyed a profitable performance for the financial year ended 31 March 2016. Despite slightly decreased revenue of R51 million, profits grew from R6.8 million to R7.9 million for the year. Nictus shares delivered headline earnings returns of 12 cents per share, and the company was able to distribute dividends for the first time since 2013. The furniture retail segment staged an impressive turnaround, from a loss of R764 000 in 2015 to a profit of R820 000. The insurance and finance segment had reduced profits of R3.6 million from R4.5 million, but this was offset by a R1.9 million profit increase from the Nictus head office.

  • In the furniture segment, focus has been placed on staff recruitment and development, along with information technology development, whilst the insurance and finance segment has also been prioritising IT development, along with stakeholder relations.

  • The full benefits of the group’s restructuring are forecast to bear fruit within the next five years. Despite low growth in South Africa’s economy, Nictus will buy into increased shareholder and policyholder value and development of management and related structures. Higher interest rates should have a positive impact on the investment side of the group.

Nictus Group Investor Tip

  • Nictus share price history won’t instill confidence in investors looking to buy small-cap stocks. After achieving highs of almost R5 in 2012, Nictus shares have been languishing at around 50 cents since 2012. Although the business has returned to profitability and management has forecast that positive effects will arise from the restructuring, investors will be losing patience in the company. There are currently much better small-cap JSE stocks to buy.

Nictus Major Shareholders

NC Tromp, Nictus Holdings, GR de V Tromp, PJ de W Tromp, KCB Trust.

  • Sector

    Consumer Discretionary

  • Industry

    Retail – Discretionary

  • Sub industry

    Automotive Retailers

How to buy Nictus Group Shares

  • Nictus : How to buy Nictus Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Nictus Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Nictus Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Nictus Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Nictus Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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