Nictus Holdings more than doubled its capital expenditure on property, plant and equipment to N$124.8 million in the year ended June 2026, from N$56.3 million a year earlier, as the group increased investment in its retail and property operations.
The group also invested N$222.9 million in investments, up from N$80.9 million in the previous year, while N$84.9 million in construction costs was capitalised on three properties previously classified as investment property.
Nictus said the investments in its Property segment and retail subsidiaries affected short-term profitability, but are expected to generate returns in the coming years.
The increased investment coincided with a 25.9% expansion in total assets to N$3.30 billion, while cash and cash equivalents increased to N$1.36 billion from N$1.04 billion.
Nictus also strengthened its cash generation during the year, with cash generated from operations rising to N$665.7 million from N$436.4 million. Net cash from operating activities increased to N$659.8 million from N$432.2 million.
The investment programme comes as ventures launched by the group over the past 18 months begin to stabilise, with management expecting them to make a more meaningful contribution to earnings over the medium to longer term.
However, the spending weighed on parts of the business during the year. The retail segment increased external revenue by 17.2% to N$1.15 billion, but its segment profit declined to N$4.8 million from N$13.8 million as it absorbed costs related to new strategies.
The Properties segment also came under pressure, with its segment result falling to N$1.7 million from N$13 million, despite revenue increasing slightly to N$34 million.
At group level, revenue increased 15.3% to N$1.15 billion, while gross profit rose 6% to N$271.1 million. Higher operating and administrative expenses, however, contributed to a 3.4% decline in operating profit to N$73.5 million.
Despite the weaker operating result, profit for the year increased 18.9% to N$70 million from N$58.9 million, supported by stronger performance from the Insurance and Finance segment and lower taxation.
The Insurance and Finance segment increased its result by 27.2% to N$64.6 million, from N$50.8 million a year earlier.
Nictus is also rationalising its property portfolio and has entered into a binding agreement to sell its entire investment in Isuzu Truck Namibia. The disposal group had a net carrying value of N$10.8 million at year-end.
Headline earnings increased to N$69.8 million from N$57.5 million, while headline earnings per share rose to 130.62 cents from 107.53 cents.
The board declared a final dividend of 35 cents per share, equivalent to N$18.7 million.
