“The short to medium-term strategy of selective expansion within the Southern African Development Community (SADC) region continues to receive critical attention, and the company is currently seeking strong alliances for this expansionary objective during late 2009 and 2010,” said HWWH chief executive Shaun Miller.
Miller said as African economies expanded, opportunities were opening up for HWWH, which was started in King William's Town in 1996.
“In the next decade Africa will be ready for the picking,” said Miller, adding that his company was poised to take advantage of the continent's economic growth and development. “We are in talks with some of the major retail chains who already have a footprint in Africa. We are looking at neighbouring countries such as Mozambique, Zambia, Botswana and Namibia first.”
The company grew its footprint by more than 80% in 18 months following its listing on the JSE Alternative Exchange (AltX). “Over an 18-month period to December 2008, an 82% store growth was attained, with the company now having a total of 20 stores under the expanded Hardware Warehouse, Bath and Tile Warehouse and On-Tap brand banners,” Miller said.
Further expansion plans were in the pipeline for Mpumalanga and KwaZulu-Natal.
The company's revenue grew by 61% to R165,7 million in the six months to December 2008, despite signs that confidence in the building industry was waning.
“We are not affected as much by interest rate and electricity price hikes as other businesses such as furniture retailers are.
“We supply customers whose building needs are a necessity as opposed to a luxury; the kind of people moving into formal housing,” said Miller.
Positive organic growth added 34,90% to revenue whilst 26,22% was attributable to new store openings.
Source: Daily Dispatch
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