FASHION manufacturing and retailing concern Truworths Group managed to record a substantial growth in turnover for the year ended July 7 2013 on the back of an innovative credit card facility.
BY KUDZAI CHIMHANGWA
Zimbabwe is currently experiencing a crippling liquidity crunch which has negatively affected cash flows for many businesses, with the clothing industry being one of the hardest hit.
Group turnover went up to US$25 336 987 as at July 7 2013 from US$22 million recorded during the same period last year. Truworths chairman Christopher Peech said it had not been an easy year but the company managed to get through.
He said that all manufacturing in the country was facing severe challenges but Truworths had made a plan in terms of optimising on the company factory’s capacity.
“Our main initiative [to remain afloat] is risk management, we’ve made sure that we take no unnecessary risks, we’ve been extremely cautious during the year because so many factors are uncertain but we are confident of survival,” said Peech.
He said it was too early to tell how well the company would perform over the festive season as people have not been spending owing to the liquidity challenges.
“We had an excellent October with the launch of our credit card and we are expecting a good Christmas. We are also conscious that the economy is not at its best at the moment so we will wait and see what happens in January,” he said.
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The company remained optimistic that its in-store credit card launched in October would have a positive impact on the group’s performance in the next few years.
As at July 7 this year, the number of active accounts increased to 76 500 as compared to the same period last year, where there were 70 724 active.
Peech said the company has always had well-maintained and established lines of credit but would also reduce exposure to borrowing as part of risk management.
