MedTech results surpass expectations

Ndamu Sandu

MEDTECH Holdings Ltd finance director Suleman Girach says the company’s first quarter results exceeded expectations.


He

said this showed significant organic growth compared with the same period in 2002, despite problems facing the economy.


Girach said the company had good stock holdings.

“This has enabled the company to trade strongly,” he said.

The finance director said the increased stock holding had resulted in an improvement in productivity and utilisation, which contributed immensely to volume growth and an increase in market share.


He said the contribution by Baines Image group which was not included in the first quarter results last year led to the increase in the group’s turnover.

Girach said production had also increased.


“MedTech Distribution, which began in February, is trading well and this has buoyed the company,” he said.

In the first quarter turnover firmed by 520% from last year, while contributions rose by 540% in the year comparable.


Girach said Baines Imaging operations in Lusaka and Beira, which began last year, were contributing positively to the group.

“We are getting them established and they are performing well,” he said.

MedTech, Girach said, would capitalise on the standard of the health delivery system in those countries, which did not have advanced systems.


He said plans were underway to set up imaging practices in Botswana and possibly the Congo.

He said the company would also pursue regional listings in due course as part of the group’s expansion drive.


“We are working on the listing on the Botswana and Mauritius Stock Exchange in due course,” he said.

He said there was a strong order book for all divisions.

Girach said the group remained on track to perform well ahead of inflation and budgets set.


He said MedTech was gearing itself towards additional exports and the development of a regional presence.

“We export to South Africa and the company is trying to make inroads into Zambia,” said Girach.


He added that MedTech had recorded a debt-free balance sheet and had a strong order book for all divisions.


The ZSE-listed company operates five divisions, namely MedTech Medical and Scientific, Baines Imaging Group, Hospital products, Consumer products and MedTech Distribution.


MedTech shares yesterday traded at $8.

Top