Social unrest coupled with an uncertain economic environment following the introduction of bond notes have negatively impacted on Truworths Limited sales.
In the period ending July 2017, Truworths Limited recorded a 28.8% lower than the prior year resulting in an operating margin of -19.4% compared to -7.8% in the previous year.
Group chairman, Christopher Peechsaid the whole group is disappointed about the loss for the reporting period.
“Retail sales reflect the difficult trading conditions l have alluded to and l am disappointed to tell you that your company posted a loss for the period.
“Turnover was 28.8% lower than the prior year resulting in an operating margin of -19.4% compared to -7.8% in the previous year.
According to the group secretary Tinashe Chidovi, the capital expenditure for the year to July 09 2017 was $34.222.
“Capital expenditure for the year to July 09 2017 was $34.222. The approved capital expenditure for the year to July 08 2018 is $120.000.
“The authorised share capital of the company remains at $100.000 comprising 1.000.000.000 ordinary shares at $0.0001 each and the issued share capital has not changed during the year.
Meanwhile the group Chief Executive Officer, B Ndebele reported that the number of accounts increased by 4.1% over the comparative period which could turn things around for the struggling clothing shop.
“Number of accounts increased by 4.1% over the comparative period.
“Trade receivables increased by 15.3% due to more customers opting for the 12 month payment scheme instead of the 6 month payment scheme increased by 35.4% resulting in a 76.7% increase in the 12 month scheme increased by 35.4% resulting in a 76.7% increase in the 12 month scheme values,” he said.
Meanwhile the company did not declare a dividend due to the difficulties they are facing.
Truworths Limited was incorporated in Zimbabwe in 1957 and has been operating as a retailer since then. The company was listed on the Zimbabwe Stock Exchange in 1981 operating from 14 retail outlets comprised of Truwoths Stores and Topic Stores.
