First Mutual Holding Limited (FMHL) says it is battling to set up its funeral services unit as its executives are struggling to navigate unfamiliar territory.
BY FIDELITY MHLANGA
The funeral services subsidiary was expected to start operations early this year, but is behind schedule despite FML last December going on a recruitment drive for a finance manager, branch supervisors, funeral consultants, accounts clerks and undertakers positions.
Sources say the company has only managed to fill a few key positions.
FML CEO Douglas Hoto last week confirmed that the setting- up of the company had been moving at a snail’s pace.
“I didn’t talk a lot about it because it has not moved as fast as we want.
“But I can tell you that we have actually put money into it now and expect it to start operating early next year, but it’s behind schedule,” he said.
Hoto acknowledged the difficulties his firm was facing in setting up the funeral business.
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“Because it’s an area we are not familiar with and we have been focusing on other things like, acquisition of NicozDiamond, but we are on course now,” he said.
In the six months to June 2018, FMHL posted profit after tax of $8,662 million from $4,284 million in the comparative period last year.
Gross premiums written went up 40% mainly driven by NicozDiamond business, health insurance, pension and savings and life assurance.
Rental income increased by $600 000 to $3,8 million, versus $3,2 million last year, owing to new lettings in high-value space and increased turnover from rentals in retail properties
Operating profit went up by 227% to $5,3 million from $1,6 million last year, which did not include the NicozDiamond business.
This year, NicozDiamond contributed $1 million.
Total assets increased from $329,9 million to $344,2 million during the period.
