EDGR.zw | Release of 2017 annual report

The Board of Directors of Edgars Stores Limited is pleased to release the 2017 annual report. Below are excerpts from the Chairman’s Report.

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 contributed to a stronger second half sales. Sales of merchandise for the year at $62.9m were 25% above 2016 ($50.3m). Group margins were maintained at 43%…

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 writeoffs for the period averaged 6.9% (2016: 7.9%) of lagged credit sales, and 0.3% of lagged debtors (2016: 0.8%)…

Financing and cash flow

At year end, borrowings 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. We are currently adequately stocked in most departments and the sales and profit performance in 2018 is ahead of last year. Much focus will be given to development of our staff in 2018.

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 final 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 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 the 24th of April 2018 and ex-dividend as from the 25th of April 2018.

Appreciation

I am grateful to 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