Edgars posts $3,3m profit

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Steady growth in accounts, improved merchandise and successful rebranding of Express to Jet Stores ensured Edgars Stores attained total revenues of $52,9 million for the full-year ended January 7 2012.

Retail sales were up 44% to $51 million. Credit sales contributed 76% to turnover with Edgars cash sales contributing 14% while Jet-Express cash sales amounted to 10%.

Profit before taxation for the group was $4,6 million while profit for the period was $3,3 million up from $1,5 million in 2010.

The number of debtors accounts jumped 43% to 158 901 during the period under review.

Earnings per share rose 200% to 1,37 cents from 0,62 cents the previous year.

Edgars group managing director Linda Masterson told an analyst briefing the rebranding to Jet was a success as nine out of 13 Express Stores have been rebranded.

“It (Jet) was positively received by our customers and we expect it to contribute 20% to turnover in 2012,” she said.

Masterson said Jet contribution for this year was expected to increase and the company would be considering credit for the brand.

Edgars’ average spending for new and existing accounts per customer stood at $89.

New account spending for average purchases was $141,24 per account and $81 on existing accounts.
Group financial accountant Jacqueline Ngwenya said the group was projecting a trading profit margin of 15% and expected finance cost to be below 4% of turnover in 2012.

“We are looking for a profitable growth, account growth and new stores this year,” Ngwenya said.
She said the company was considering introducing quality international brands and increasing production at low cost.

Ngwenya said negotiations were underway to substitute short-term borrowings with long- term funding.

“We are negotiating with local banks for long-term finance,” she said.

Borrowings for the group stood at $15,6 million for the period under review while total assets were $33,2 million.