Bulawayo-based Haddon and Sly, which runs a department store and supermarkets, had a disappointing year which saw profits after tax decline from $772 000 to $215 000, although the latest results are only for 10 months because the company has changed its financial year to end in December instead of February.
In its results for the 10 months to December, turnover increased from $57.6 million for the year ending February 1997 to $73 million but earnings declined from $1.2 million to $345 000.
The net outturn for the 10-months, however, increased to $1.4 million because of a surplus from the sale of an industrial property which brought in $1.1 million.
The company says although sales grew by 27 percent, the performance of the department store side was below expectations. The company was however shielded by improved sales in the supermarket and from the new Spar outlet which was opened in April 1997.
The company remains optimistic because its balance sheet is very strong with current liabilities of only $12.8 million against current Assets of $20.3 million.
It also says although an option was given to a developer to buy the company’s Bulawayo central business district properties this was not taken up. The project is still under consideration.
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