Medtech Holdings Limited recorded an operating loss of $109 000 and shut its textile and plastic divisions during the year ended December 31 2010 due to lack of working capital.
In 2009 the group recorded a $178 000 loss.
Group turnover rose to $7,4 million from $2 million in 2009.
In a statement accompanying its financial results, Medtech said the closure of Medtech Textiles and Plastics and low production by Zimbabwe Pharmaceuticals resulted in the company under-performing during the period under review.
“A small profit in distribution subsidiary was not sufficient to offset these losses,” the company said.
The company’s inventory increased by 282% and receivables stood at 55% for the year. The increases were attributed to borrowings and credits during the period under review that grew to 262% and 229% respectively.
The company’s subsidiaries include Medtech Distribution, Zimbabwe Pharmaceuticals and Medtech Trading.
Zimbabwe Pharmaceuticals resumed operations last month and output is expected to increase in second half of the year.
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Medtech Distribution contributed 93% to group turnover and recorded a sales growth of 328%.
The group seeks to increase its subsidiary’s sales by the last quarter of this year by $1 million.
