Edgars Stores Limited releases its 2017 abridged financial results and presentation for the period ended 7 January 2018. Below are excerpts from the results and Chairman's Statement.
Chairman's Statement
Improvements in merchandise assortments, customer service, promotions, revamps and the new political dispensation together with utilisation of excess RTGS balances resulted in improved consumer confidence which stronger second half sales...
Retail Operations
Edgars Chain: Total sales were $39.6m (2016:$33.9m) and sales per square metre were $1 784 (2016: $1 467) out of 26 stores (2016:27). Units sold for the year were 1.9m (2016:1.7m), an increase of 11.8%...
Credit Management
Edgars chain debtors were $17.7m (2016:18.7m), after an allowance for credit losses of $1.3m (2016:$1.8m) Net write-offs for the period averaged 6.9% (2016:7.9%) of lagged credit sales, and 0.3% of lagged debtors (2016:0.8%)...
Manufacturing
The factory made a trading loss for the year of $0.6m (2016:0.4m). Performance was affected by supply chain constraints due to the severely restricted allocation of foreign currency for fabric...
Microfinance
This operation, which offers small loans to consumers, traded for only the last 4 months of the year. At year end $643k had been advanced...
Financing and cashflow
At year end, borrowing had reduced to $4.6m, from $11.2m and gearing was 0.08 (2016:0.35). We expect borrowings to increase in the short term to finance growth of the microfinance business and fund capital expenditure to retool the factory and revamp stores...
Outlook
The limited allocation of foreign currency to the clothing sector is of grave concern to the Board and management Numerous measures are being pursued to mitigate this risk which will dampen growth prospects...
Dividend
The Board has declared a final dividend of US 0.33 cents per share payable in respect of all ordinary shares of the Company. This dividend is in respect of the financial year ended 7 January 2018 and will be payable in full to all the shareholders of the Company registered at the close of business on the 27th of April 2018. the payment of this dividend will take place on or about the 11th of May 2018. The shares of the Company will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of 24th of April 2018 and ex-dividend from the 25th of April 2018.
Appreciation
I am grateful to the board colleagues, management and staff for their dedication. I am also grateful to our customers for their loyalty and our landlords, bankers and suppliers for their continued support.
TN Sibanda
Chairman
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