Lewis share price explodes as furniture group doubles profit

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Lewis share price up 17% on news of increase in profits.
Lewis share price up 17% on news of increase in profits.
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JSE-listed furniture and appliance retailer Lewis Group's share price rocketed by more than 17% on Wednesday morning after the group said its profit will more than double for the year to end-March. 

In a trading update, the company said its headline earnings will rise by between 116% and 136% compared to the profit of R204.5 million in the previous year, driven by robust growth in cash sales, despite Covid-19.

The furniture and appliance retailer said it is also benefitting from the health of its debtor's book as satisfactory paid accounts increased for the year and collection rates improved steadily post the lockdown.

"Debtors' costs reduced significantly compared to last year when an additional Covid-19 debtors' impairment provision of R189.5 million was raised," said the group in an update on Wednesday.

The group's brands include Lewis, Beares and United Furniture Outlets.

Its share price is up almost 180% from lows reached in August.

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