Edgars Group Managing Director, Linda Masterson
Source: Big Law IRSummary:
- 8% growth in debtors book to 204,000
- Profit before tax flat
- 2 new stores opened since December 2014
- Better working capital management
- New ERP system implementation set to improve efficiencies
- Dividend waived
- Customers given up to 12 months to pay
This however is expected to change by year end as trading has picked up since April and the Group expects to see positive bottom line growth for the year.Tight liquidity, sluggish economic growth, company closures and price based competition in the cash market have adversely affected the Group’s performance in the period with a turnover of US$29.5 million, which is lower than what the Group had projected for the period.
Commenting on the retail operations, Edgars Chairman Mr Themba N. Sibanda said in his statement that the Edgars chain opened two new stores – in Victoria Falls and downtown Harare – bringing the total number of Edgars branches to 28 from 24 in July 2013. The chain's turnover increased by 7.4% while its profits declined by 9.7%.
The Jet chain contributed 18.8% to the Group's turnover, from 18.2% last year, whilst total turnover for the 25 Jet stores was 12.3% above last year. The number of Jet outlets has increased from 18 stores in 2013 to the current 25 stores.
“July trading was more buoyant, and both profitability and old store growth rates improved. The chain has been seriously affected by price-based competition from the informal sector and unbalanced assortments arising from the rapid expansion last year. Concerted efforts to improve pricing and product assortment are underway and we expect a turnaround for the chain in the last quarter. Closing stock cover was 12 weeks, which is a solid improvement from 16.7 weeks last year,” said Mr Sibanda.
The Edgars store chain experienced growth in its debtors’ book to 203,728 accounts – an increase of 8% from the previous period last year.The factory contributed US$264 148 to the Group's Profit before Interest and Tax (PBIT) due to a 35% increase in production volumes to 170,197 units.
Source:Big Law IR
HY 2014 financial results presentation
HY 2014 financial results