Zimbabwe Stock Exchange listed furniture retailer, Pelhams Limited says favourable credit terms had driven a 156 percent jump in turnover for the half year to September 30, 2011.

 

“Revenue grew by 156 percent from the prior year comparative of $2, 7 million driven mainly by credit sales which increased by 239 percent relative to prior year and contributed 73 percent of revenue,” Oliver Chidawu ,Pelhams chairman said..

 

The furniture retailer’s operating profit increased by 591 percent from a prior years negative position of $311 958.

Pelhams had total borrowings of $5,2 million compared to $2,8 million prior year.

Chidawu said its manufacturing unit, Tradewinds had managed to maintain its revenue contribution of 5 percent to the group.

Going forward, the retailer said it would work to reduce financing cost and seek long term finding for its operations.

“The focus in the last half year will be to grow revenue through improved credit terms, increased stock holding and improved stock mix.

Pelhams said it aimed to take advantage of increased disposable incomes to grow its sales, a position that has seen its credit repayment terms increased to 24 months.

“The extended terms, which have generated market excitement, are anticipated to have a positive impact on performance in the last half of the year as the company positions itself as the credit retailer of choice,” Chidawu said.