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Medical supplies manufacturer and distributor MedTech Holdings has returned to profitability after posting a modest $161 169 net profit for the year ended 30 June, recovering from a $278 000 loss during the same period last year. Buoyed by its disposal of loss making subsidiary Zimbabwe Pharmaceuticals and an improvement in performance by its medical division, the Zimbabwe Stock Exchange listed company recorded a jump in turnover to $7 million from $6,4 million.
Group chairperson Ms Rose Mazula said the group had diversified its operations by forming a new associate company involved in beverages production.
“The group is in the process of investing in an associate company, MedTech Food and Beverages and has commenced distribution operations for beverage products which are bottled in Zambia and Mozambique,” she said, presenting the company’s financial results.
The group has also set up a toiletries manufacturing subsidiary in Ruwa as part of initiatives to expand revenue streams.
Basic earnings per share also benefited from the profitability, recovering to a gain of $0.006 from a loss of $0.007 last year.
Ms Mazula said the group had not declared a dividend due to demand for cash to pursue its growth strategy.
She said the outlook was positive for the last half of the year given the peaceful environment prevailing in the country after the 31 July elections won by Zanu-PF and the company improved liquidity position.
“Liquidity has improved following the discontinuation of Zimbabwe Pharmaceuticals, given that financing of losses and recapitalisation of that unit ceased in November 2012,” she said.
The company has divided its operations into medical and manufacturing division, with the former involved in the sale of fast moving consumer goods.
In the period, the group’s total assets surged to $8,7 million up from $7,6 million, with fixed assets only amounting to $1,2 million
Currents assets at $7,6 million slightly edged current liabilities which amounted to $56,4 million. – New Ziana.
Bongani Ndlovu
Online Reporter