EDGR.zw | Release of 2012 annual report

The Board of Directors of Edgars Stores Limited is pleased to release the annual report for the year ended 31 December 2012. Below are excerpts from the Chairman's Report.
Chairman's Report

Aggressive account drives, marketing, finalization of re-branding Express Mart Stores to Jet as well as the opening of additional outlets led to the Group realizing an 18% increase in turnover, above that which was promised at half year…

Retail Operations

The Edgars chain grew sales by 12% to $48,8m (FY2011 $43.4m). This represents 81% of group retail sales (FY2011:86%) of which 73% were credit sales…
Manufacturing

The factory incurred a loss of $417 906 (FY2011:$565 793) which was an improvement of $147 887. Equipment has been purchased to enhance quality and production efficiencies…

Credit Management

Average handovers were 0.3% and 1.6% of lagged debtors and credit sales respectively. Provision for doubtful debts was 1.64% of total debtors.

Capital Expenditure

The bulk of the capital expenditure was for new stores and refurbishments, with the balance spent on IT systems, vehicles and other plant and equipment.

Outlook

Our focus areas this year are to continue improving the customer experience, merchandise assortments, cost control and factory profitability while developing and motivating our people. We are confident that the business will continue to grow and that profitability will improve.

Dividend

The Board is conscious of the need for the payment of dividends. This will be done when our recovery is complete in terms of gearing.

Appreciation

I am grateful to board colleagues, management, staff and other stakeholders for their unwavering efforts and support of the business.

T.N Sibanda
CHAIRMAN