Medtech records loss, shuts subsidiaries

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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.

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.