MEDTECH Holdings posted a profit after tax of $231 638 for the year ended December 2015 from a loss of $1,2 million registered the previous year.
BY VICTORIA MTOMBA
In a statement accompanying the group’s financial results, Medtech said the improved performance was due to the weaker Rand. It said the group had benefited from translation of foreign denominated balances into United States dollars, as evidenced by the increase in net exchange rate gains included in the net finance income for the year of $855 739.
“Stringent credit control management also contributed significantly to the improved performance whilst also bringing about a decreased but healthier and manageable debtor book,” Medtech said.
“However, as reported at half year, amounts due from one of the major customers who was facing difficulties at the time were provided for in full year end. On-going cost cutting initiatives resulted in lower expenses as compared to prior period.”
The group said the trading environment remained subdued as real income was still minimal while unemployment worsened thereby having a negative effect on consumption and resulting in decrease in revenues.
Revenues for the group went down by 7% to $13,3 million during the period under review from $14,3 million the same period in 2014.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Significant reduction in operating loss was recorded in 2015 to $378 825 from $1,43 million in 2014.
Going forward the group expects the macro economic situation to remain the same and even to deteriorate.
“There are a number of factors which we believe will constrain growth in 2016. These include policy uncertainty, delays by the banks in remitting payments to foreign suppliers, the drought, smuggled competing products and increased competition by unregistered operators,” the group said.
The company operations are in FMCG, medical and manufacturing which recorded decreases in their performance due to the unfavourable trading environment.
