Last year we enjoyed a modest rise in disposable incomes which led to strong monthly growths. The recovery in the economy has slowed markedly in 2011 and, since January we have detected stagnation in disposable incomes. However, because we are coming off a low base, Group turnover for the five months grew 85% to $15,2million. Retail unit sales grew 47.1% and a gross margin of 51.5% was achieved compared to 49.0% last year. Dollar figures grew faster than units partly due to price increases filtering through after the cotton and wool price increases last year. The bulk, however, was a result of the launch of up-market brands in October, as well as better stocking in areas that can carry better margins.
The number of debtors' accounts grew to 127,910 from the 111, 199 reported at year-end and the debtors' book currently stands at $12,2million. Monthly collections were an average of 24% of opening debtors. Bad debt handovers as a percent of lagged debtors were 0.49%.
Borrowings stood at $16,7million at the end of May at a cost of 16.49% per annum. Financing tenor and rates have improved with a further $5million deal being clinched for a two-year period. The weighted average rate of interest is projected to decrease to 16% from the 18.2% in December 2010.
Merchandise assortments in ladies-wear improved significantly with notable quality improvements being made by local suppliers. Imports and internationally recognized brands introduced in the stores are also performing well.
We expect the half year top line results to be around 90% up on last year while, at PAT level, we should produce a modest profit against the $1,7million loss last year.