CLOTHING retailer Edgars Stores Limited expects borrowings to decline in its current financial year ending January 2027, as it anticipates stronger cash generation from its debtors’ book.
During the financial year ended January 4, 2026, Edgars’ US-dollar retail debtors’ book closed at US$12,6 million, reflecting 8,6% year-on-year growth. Active USD accounts rose to 83 700 from 81 300 in the prior period, while credit limit utilisation improved to 30,6% from 16,8%.
The ZiG retail debtors’ book, however, closed the period at ZiG1,9 million, down from ZiG3,9 million in the prior year, following the curtailment of domestic currency credit in the first half of the year.
ZiG lending was later reintroduced in June 2025 after improved currency stability, with measured growth thereafter.
Consequently, the group expects better collections in the current year under review, which management believes will strengthen cash flows and reduce reliance on external borrowings.
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Borrowings were recorded at US$9,52 million for the period ended January 4, 2026, up from the prior year due to increased working capital investment.
“Borrowings are used to profitably fund our debtors’ book. As we generate more cash, the borrowings will come down in FY26,” Edgars chief executive officer Sevious Mushosho told NewsDay Business.
Net cash inflows from operating activities fell to US$1,8 million in the 2026 financial year, down from US$2,52 million in the prior period. However, bank and cash balances improved to US$3,87 million from US$2 million previously.
The group also ended the period with US$1,31 in current assets for every dollar of short-term debt, indicating improved liquidity.
“We have a robust credit and risk management system, which has given us the good result you have seen,” Mushosho said.
“As reported, our debtors’ book is at US$12,6 million, of which 85,5% is current, which is an exceptional achievement.”
He added that strong credit and risk management systems have safeguarded the quality of the debtors’ book and are reshaping the company’s performance.
“Profitability is a result of good margins and controlled expenses,” Mushosho said.
“Good margins are achieved when you procure right and price competitively to stimulate demand. This will be sustained into the future.”
Profit after tax more than doubled to US$1,94 million in the 2026 financial year.
The company is also investing in operational efficiency, including the retooling of its Carousel manufacturing plant, which is expected to enhance production capacity, strengthen support for its retail chains, and improve margin resilience.
Last year, Edgars’ market value rose nearly 87% to US$14,02 million on the Victoria Falls Stock Exchange (VFEX), reflecting investor confidence in its growth strategy.
However, year-to-date, the group’s VFEX market value had eased slightly to US$13,65 million as of Wednesday.
