Rex Trueform feels the pinch
By Marc Hasenfuss - Sep 11th, 14:37
Operating margins were ripped to shreds at Rex Trueform — the owner of niche fashion retailing chain Queenspark — in the year to end-June.
Results released on Friday showed Rex Trueform’s operating margin at a threadbare 0.13% compared with 2% in the previous financial year.
This is well below the margins achieved by larger listed fashion retailers like TFG, Truworths and Mr. Price.
Operating profit came in at just R755,000, well down on 2016’s R11.5m figure.
The effect on the bottom line was cushioned by interest received of R4.4m — earned from Rex Trueform’s cash pile, which started the financial year at R81m but ended the trading period at R58m.
Rex Trueform CEO Catherine Radowsky said that additional operating costs were incurred with the opening of a Queenspark store in Namibia.
The Queenspark division recorded an operating loss of R1.9m, compared with a R9.4m operating profit in the previous year, Radowsky said.
There was better news from the company’s property division — for which its Rex Trueform Office Park complex located in Salt River, Cape Town, is the main income-generating operation.
Radowsky said the property segment managed to generate operating profits of this segment amounted to R8m, falling from R8.5m in 2016. The drop in profit stemmed mainly from one-off maintenance costs, she said.
Rex Trueform intended to develop two more Cape Town-based properties in the medium term, she said.
Radowsky noted one of the properties was classified as a heritage site.
"This limits the development opportunities and has caused a delay in the development process," she said.
On Friday, Rex Trueform and its holding company, African & Overseas Enterprises, announced the appointment of empowerment pioneer Marcel Golding, formerly chairman of Hosken Consolidated Investments, as chairman.
Golding is part of an investment consortium that has effectively taken control of Rex Trueform and African & Overseas Enterprises. © BusinessLIVE MMXVII
Checkers partners up with UberEATS
17/11/2017 - 14:37
Checkers announced it is partnering with UberEATS to make holiday entertaining even more convenient for its Cape Town consumers this summer.
Weylandts launches concept store in Sandton City
17/11/2017 - 14:13
SA’s leading furniture and homeware retailer, Weylandts, has launched an exciting new concept store in Sandton City. A dramatic luxury hotel-themed shop fitting canvas has been created on which to display their furniture and homeware, providing a shopping experience unique to South Africa.
Walmart online growth leaps 50%, lifts annual profit guidance
17/11/2017 - 13:42
Walmart is on a roll as it continues to reap the benefits of its e-Commerce push, seeing 50% online sales growth in Q3. The total remains well ahead of Walmart’s 40% e-Commerce growth projections for 2018.
Trading hardship continues for Italtile
17/11/2017 - 11:19
Italtile says weak trading conditions in the second half of the financial year persisted in the 19 weeks from July 1 to November 10.
Festive retail sales may help give GDP a boost
16/11/2017 - 13:53
The retail sector is set to make a positive contribution to third-quarter GDP as retailers adapt to the difficult economic conditions and as they look forward to the festive season for relief.