Edgars Stores Limited releases its 2013 interim financial results and presentation for the period ended 6 July 2013. Below are excerpts from the Chairman's commentary.
Picture: Edgars Group Managing Director, Linda Masterson
Introduction
The conclusion of the medium term guaranteed loan in December 2012, coupled with improvement in our merchandise assortments and increased factory profitability have contributed towards the group realising a 17% increase in after tax profit.
Retail operations
Unit sales within the Edgars chain grew by 4.4%, while store trading profitability increased by 23.9%. Turnover for the period was $22.1m. During the six months to June 2013, the chain traded out of 24 outlets (2012- 23)...
Manufacturing
The factory’s recovery resulted in a profit before interest and tax of $118 901 (2012- $141 664 loss). New Men’s and Boys’ Casual ranges have been successfully introduced.
Credit Management
At $18.8m, trade receivables were 14.7% up on last year, with the number of accounts being 188 447- of which 72.5% were active (2012- 74%). Average handovers for the period amounted to 1.2% and 0.3% of lagged credit sales and lagged debtors respectively. Our provision for doubtful debts is 2% of total debtors.
Capital expenditure
The bulk of capital expenditure was incurred on new stores and refurbishments of existing stores. Improvements were also made to factory plant and equipment as well as IT systems and hardware.
Outlook
It is too early to determine with certainty the direction in which the economy will move. We will focus on marketing to increase brand awareness of Jet as well as expanding its footprint through opening new stores. We will intensify efforts to improve product offerings and value within both retail chains while implementing tighter cost control across the board. Through these initiatives the group will realise the desired growth in profit by year end.
Dividend
The company is still not in a position to pay a dividend.
Appreciation
I am grateful to board colleagues, management and staff for their unwavering efforts, our customers for their continued patronage and our landlords and suppliers for their valued support.
T N Sibanda
Chairman
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