Edgars engaged in discussions that may impact share value

Edgars engaged in discussions that may impact share value
Published: 06 September 2018
EDGARS Stores (Edgars) says it is engaged in discussions with an unnamed investor in a deal that may impact value of the company's shares.

Buhlebenkosi Mpofu, the clothing retailer' company secretary, yesterday advised shareholders in a statement to be cautious on the local stock market when trading Edgars' shares.

"Edgars wish to advise all shareholders that the company is engaged in discussions that may result in a transaction which may have a material impact on the value of the company's shares. The directors therefore advise shareholders to exercise caution when trading their Edgars Stores shares and should consult their professional advisors before dealing in their shares," Mpofu said.

At the company's annual general meeting in April this year, managing director Linda Masterson said foreign currency shortages continued to pose a challenge to merchandise assortments and the high premiums were a threat to margins.

She hoped that the post-election period would bring the much needed positive business environment upon which the company was geared to take advantage of.

The group's turnover for the period to April 2018 was up 37 percent with management optimistic that Edgars would deliver its promise of a 14 percent growth in the top-line by year end.

Masterson indicated that the financials were pleasing especially in the face of the constrained environment characterised by foreign currency shortages.

Retail unit sales increased 13.9 percent over 27 and retail sales as at the end of April were 37 percent above last year against input inflation of 28 percent.

Finance income came down to $2,3 million from $3 million as a result of a cleaner debtors book driven by consistent civil servants salaries and enhanced control environment.

Profit after tax was at $ 1,3 million being 2,5 percent lower than last year.
- fingaz
Tags: Edgars,


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