Edgars interim profit jumps 400%

Edgars interim profit jumps 400%
Published: 19 September 2017
Listed clothing retailer Edgars Stores Limited's profit for the half year to July 2017 jumped 400 percent to $567 499 from $109 119 during the same period last year on increased sales and tighter debt management.

Revenue for the period also rose 7 percent to $24, 7 million compared to $23, 1 million.Total sales for Edgars chain for the period rose 4,8 percent to $15, 2 million from $14,1 million while its profitability increased by 6 percentage points to 27 percent.

Its comparable half year sales per square metre rose 5, 7 percent to $685 while it traded from 27 stores.Jet stores total sales for the period increased 12, 9 percent to $8, 7 million from $7, 7 million while its comparable sales per square metre was 13 percent higher at $913.

But its profitability remained flat at 16 percent, from the 24 stores that traded.The group employed tighter credit control and management strategies that have helped the company improve its earnings.

"The Enterprise Resource Planning (ERP) solution has enhanced controls over credit policies. This, together with improved debt collection and policy changes in credit management has resulted in savings of $1, 5million on last year.

"We anticipate savings of at least half this amount in the second half of the year. Other operating expenditure increased due to post go-live ERP continuing support," said group chairman Mr Themba Sibanda.

Mr Sibanda however bemoaned the prevailing foreign currency shortages that are expected to impact product range especially in the fourth quarter.

Edgars did not declare a dividend.
- BH24
Tags: Edgars,

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