The Board of Directors is pleased to release the annual report for the year ended 4 January 2014. Below are excerpts from the Chairman's report.
Chairman's report
The group's footprint was increased through the opening of 9 new outlets during the year to close the year with 49 stores. The performance of our business is largely dependent upon the level of formal sector employment and its capacity to obtain credit...
Retail operations
The Edgars chain grew sales by 5% to $51,4m (FY 2012 $48,8m). This represents 80% of group retail sales (2012:81%) of which 72% were credit sales (2012:71%)...
Manufacturing
Profit for the year before interest and tax was $376 680 versus a loss in 2012 of $280 525, a significant turnaround of $657 205.
Credit management
The number of debtors accounts grew to 197 932 (2012:181 581), an increase of 9%. Average handovers were 0,3% and 1,4% of lagged debtors and credit sales respectively...
Capital expenditure
$1,8m was spent on new stores and refurbishments. The major capital expenditure project in the coming year is an upgrade of our IT systems, which form the backbone of our business, to a fully integrated system which will enable us to better serve and interact with our customers, suppliers, bankers and other stakeholders.
Outlook
The main focus is on improving customers' experience in our stores and with our brands. Through various initiatives that we are currently finalising, we will be giving our customers more value and wider choice...
Dividend
The company is still not in a position to declare a dividend. There is a backlog of capital expenditure projects to be embarked on and the level of debt is still too high.
Appreciation
We are grateful to management, staff and other key stakeholders for their efforts and support of the business.
T.N Sibanda
CHAIRMAN
6 March 2014