EDGARS Stores Limited (Edgars) still owes its major shareholder, Annunaki Investments (Private) Limited, US$2,64 million in shareholder loans despite posting a 139,4% surge in profit for the year ended January 4, 2026, underscoring the clothing retailer’s continued reliance on shareholder funding.
In its annual report for the 52 weeks ended January 4, 2026, Edgars disclosed that Annunaki, which held a 22,28% stake in the retailer as of last year, remained a key source of financial backing through loan facilities and guarantees.
The company said the loans remained outstanding at year-end, highlighting the shareholder’s strategic role in sustaining the business even as Edgars returned to stronger profitability.
This comes as the retailer posted a profit of US$1,94 million for the period, up 139,4% from the prior year.
The outstanding shareholder loans illustrate the extent to which Edgars continues to depend on external funding to support operations and growth initiatives. While profitability has improved significantly, the retailer remains leveraged and is preparing to ramp up capital spending, making shareholder support an important pillar of its financing strategy.
The shareholder backing also comes as Edgars plans to step up investment, with capital expenditure for the 52 weeks ending January 3, 2027, budgeted at US$2,1 million, nearly double the amount spent during the period under review.
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“The breakdown of the Annunaki loans is as follows: Edgars Stores Limited has a loan of US$680 000 availed by Annunaki effective January 25, 2025. Interest is chargeable at a rate of 14% per annum and payable in 24 monthly instalments. The loan capital amount, together with any interest due, is payable on January 25, 2027,” Edgars said in its annual report.
“Edgars Stores Limited has a loan of US$1 908 222 availed by Annunaki effective January 8, 2024. Interest is chargeable at a rate of 14% per annum and payable in 24 monthly instalments. Interest is payable over a period of 24 months ending December 5, 2026.”
Edgars also revealed a loan of US$50 000 availed by Annunaki in July 2025, carrying interest of 14% per annum payable in 12 monthly instalments.
The retailer said all related-party relationships exist between the group, fellow subsidiaries and the holding company.
“All purchasing and selling transactions were concluded at market rates,” Edgars said.
“All intra-group balances, income and expenses, and unrealised gains and losses resulting from intra-group transactions are eliminated in full. Intercompany balances have no fixed repayment terms.”
The group has also obtained guarantees in respect of certain borrowing arrangements.
“These include guarantees from shareholders and/or related parties to support the group’s credit facilities,” Edgars said.
“These guarantees provide additional security to lenders but do not result in the recognition of assets in the financial statements, as they do not meet the recognition criteria under IFRS [International Financial Reporting Standards].”
Beyond the shareholder loans, Edgars carried total borrowings and bank overdrafts of US$10,47 million at the end of the reporting period, down from US$10,93 million a year earlier.
Loans accounted for US$9,52 million of the total, while bank overdrafts stood at US$957 025.
The group said the facilities are secured against movable assets, the debtors’ book and property deeds, with shareholder guarantees also supporting some of the funding arrangements.
Despite its sizeable debt obligations, Edgars ended the review period with a current ratio of 1,32, indicating that the retailer had sufficient short-term assets to meet its near-term liabilities.