GIANT clothing manufacturer and retailer, Edgars Group, says its credit management efforts have borne fruit as various debtors’ books are all “clean” with “too many” paid-up accounts.
In a statement accompanying the group’s financial results for the full year January 6, 2019, the chairman Mr Themba Sibanda said:
“Debtors were very well managed throughout the year and the various debtors’ books are all ‘clean’.
“They are also too clean, with too many paid-up accounts.”
Total active accounts at the end of December 2018 were 151 552 reflecting a 9,5 percent decrease from the 2017 figure.
During the period under review, the group’s debtors were $19 million compared to $18,1 million in 2017 after an allowance for credit losses of $0,8 million.
“Net write-offs for the period averaged 1,8 percent (2017:6,9 percent) of lagged credit sales, and 0,3 percent of lagged debtors (2017:0,8 percent).
Edgars chain active accounts last December were 100 159 compared to 109 749 in 2017.
“Jet chain debtors were at $5,7 million (2017: $4,9 million) after an allowance for credit losses of $0,6 million (2017:$0,5 million).”
Jet chain total sales during the financial year under review totalled $30,5 million compared to $24,1 million in 2017.
Edgars chain, during the period under review, recoded turnover amounting to $45,7 million against $39,6 million in 2017.
Units sold for the year were 1,6 million compared to 1,9 million in 2017 and the chain’s profits to sales ratio decreased to 27 percent from 24 percent in 2017.
The group’s manufacturing unit, Mr Sibanda said, suffered a “small” loss of $0,2 million compared to $0,6 million in 2017 and some export orders were successfully completed in the second half of the year.
The Zimbabwe Stock Exchange-listed entity, which previously exported into the region as well as European markets to countries such as Germany, re-entered the export market last year.
Revenue from the group’s microfinance business increased from $0,1 million (four months trading) to $1,6 million (full year trading) with the operation reporting a profit amounting to $0,7 million .
The group’s profit amounted to $8,5 million representing a 114 percent growth compared to $3,98 million achieved in 2017.
The increase in profitability was attributed partly to increased margins in the last quarter.–chronicle.co.zw