ZIMBABWE Stock-Exchange-listed clothing retailer, Edgars Stores Limited, is operating within the set budget, managing director, Linda Masterson, said in a trading update at the company's annual general meeting (AGM) last week.
She, however, declined to give figures, saying the company was currently in a closed period.
"During the first four month of the year, we achieved a turnover of 30 percent compared to the same period last year. Gross margins have remained steady," she said.
"Our bottom line is well above last year. The number of accounts grew by five percent, while borrowing was down seven percent. Financing cost declined to 14 percent," Masterson said.
In their annual report for 2011, Masterson said Edgars' outlook would be constrained due to an absence of a lasting solution to the liquidity crisis in the country.
"Wage demands and lack of disposable incomes are increasingly being exacerbated by the micro-financing of customers," said Masteron in the annual report.
"Mindful of this, the group will continue with lowcost store improvements and opening of new sites as resources permit. Our focus wiII be on steady growth, refined merchandise assortment and improving the customer shopping experience," she said.
At the AGM, the company dropped a resolution to buy back its own share due to the liquidity challenges prevailing on the market.
Chairperson, Themba Sibanda, said the board had decided to drop the resolution as it did not see it fit to go ahead with the resolution as its present cash situation did not allow for such an operation.
"The board decided to drop the resolution to buy back its share because we do not have money at present. If we see it fit to do so we will calI for an EGM," he said.
Source: Financial Gazette