The Board of Directors is pleased to release the annual report for the year ended 8 January 2011. The following are the highlights from the Chairman's Statement
Chairman's statement
A successful marketing program and enhanced product offering underpinned the consistently positive growth that continued from the first half. Credit retail was highly competitive and various initiatives that included an aggressive account drive and the introduction of high street brands led to a satisfactory performance.
Financial performance
Edgars Chain was the growth vehicle with unit sales growing by 201% on the back of strong credit expansion. Margins improved from 48% to 53%. Chain trading profit increased 1 740% while expenses remained tightly controlled.
The ExpressMart Chain, which operates in the cash sector, had a unit growth of 81% and margins remained tight in the face of stiff competition from cheap imports in an environment of low disposable incomes...
Credit management
The quality of the credit book continued to improve. During the year, accounts grew by 186% from 38 773 to 111 199. The active book at year-end was 91%. The collection rate and all other key indicators remain satisfactory. Bad and doubtful debts are fully provided for while actual handovers for the year were 0.68% of lagged debtors. The Edgars VIP account was successfully launched and plans are at an advanced stage for other credit related products.
Appreciation
On behalf of the board I wish to congratulate the management and staff of Edgars for a sterling performance.
Outlook
Over the last year, cotton prices increased by 160% and wool prices rose 44%. The focus going forward will be smart buying to minimize the impact on our customers. Growing market share, while managing costs and working capital, continues to be our key strategic focus...
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