CLOTHING retailer Truworths’ revenue grew 8.2 percent to $25 million in the full year to July, on the back of tight cost controls and an improved product range, the company announced on Monday.
fter-tax profit grew 70 percent to $1.1 million.
Operating earnings grew 81.3 percent, yielding an operating margin of 6.7 percent compared to last year’s four percent.
Depreciation and amortisation increased 49 percent driven by capital expenditure of $1.2 million during the period under review as well as capital expenditure of $899 000 in prior year.
Gross margins grew 52 percent from 50 percent from the prior year.
The group declared a dividend of 0.078 cents per share.
Chief executive, Bekithemba Ndebele said some of the pillars underpinning the company’s performance were rigorous cost controls, opening of new accounts and active debt collection measures.
“This resulted in a reduced net bad debt expense,” he said in the annual report showing results for the full year ended July 7 2013.
Provision for doubtful debts stood at 41.6 percent.
The Truworths group is made up of Topics, Truworths and Number 1 clothing retail chains.
Topics contributed almost 52 percent of the group’s total sales with Truworths at 35.8 percent.
The group added four outlets to the Number 1 chain which helped increase sales by 26.9 percent and to 12, 5 percent overall.
Truworths cash sales grew 7.9 percent compared to credit sales growth of 10.9 percent while Topics experienced a growth of 6.6 percent and credit sales of 2.9 percent.
On the outlook, Ndebele said the group would continue with its credit granting criteria to minimise trade receivable costs and productively manage operating costs.
Chairman Christopher Peech said the group’s in-store credit card launched last month would have a positive impact on group’s performance in the next few years.
“The extension of additional credit will be done in phases, depending on how well the credit card performs and on what liquidity there is in the market,” he said.
The retailer’s major shareholders include Truworths International Limited with 34 percent shares; Old Mutual Life Assurance, 16 percent; Leraine Investment, 14 percent and Old Mutual Zimbabwe Limited seven percent.Advertisement