Business Reporter LISTED clothing retailer Edgars reported on Tuesday that its net profit in the 26 weeks’ period leading to July 11, 2015 rose 13 percent to US$1,2 million. This was despite a 1 percent decline in sales during the review period. Much of last year’s sales were attributed to the group’s credit scheme where customers were given months to settle their accounts.
Turnover from Jet – a unit of the business – rose from 18,8 percent to 27,1 percent, buoyed by credit facilities. Retailers are mainly being plagued by falling disposable income. Edgars chairman, Mr Themba Sibanda said although there was a slight deterioration in the debtors’ book, the growth in debtors is being managed well. Total trade debtors were US$29,8 million net of provisions for doubtful debt which stood at 6 percent, compared to 2 percent in 2014.
Ten percent of the debtors’ book related to Jet customers. “While an increase in bad debt was anticipated, the quality of the book remains excellent with average gross handovers at 0,5 percent of lagged debtors and 2,7 percent of lagged credit sales,” said Mr Sibanda. He said that going forward, Edgars expects to streamline its business processes and improve efficiencies.