Edgars profits rise to $3.79 million

Published: 10 June 2013

CLOTHING retailer Edgars Stores Limited posted a profit of $3,79 million for the 52 weeks ending January 5 2013, due to the aggressive account drive, an official from the company has said.

Last year Edgars registered a $3,3 million profit.

Revenue for the group increased to $62,5 million from $52,9 million during the period under review.

Edgars chain sales grew by 12% to $48,8 million. Store trading profitability was at 22%, while unit sales grew by 3%.

"The Jet chain achieved a sale of $11,1 million a growth of 52%," Edgars chairman Thembinkosi Sibanda said in a statement accompanying the group’s year-end results.

He said marketing finalisation of rebranding Express Stores to Jet as well as the opening of additional outlets led to the group realising an 18% increase in turnover above that promised at half year.

During the period under review, Edgars Stores branches increased to 24, while Jet stores increased to 16.

Basic earnings per share rose to 1,53c from 1,37c.

The trading profit for the group stood at $7,9 million during the period under review, while cash generated from operations was $4,65 million.

Sibanda said their factory incurred a loss of $417 906 which was an improvement from last year figure of $565 793.

"Equipment has been purchased to enhance quality and production efficiencies.

"Efforts to attract additional customers and improve product mix will continue. The unit will be profitable in 2013,"he said.

Trade receivables were 19,7% up to $23,3 million from the prior year, while accounts grew to 181 581.

"In December, we concluded a medium-term guaranteed loan for $18 million, repayable over five years," he said.

"This will reduce borrowing costs in 2013 and going forward."

The group will this year focus on improving the customer experience, merchandise assortments, cost control and factory profitability.

"We are confident that the business will grow and profitability will improve," he said.
- newsday

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