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Social Unrest Impacts on Truworths

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.

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“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.

 

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