TEDCO Ltd yesterday said while its bad debt portfolio had been drastically reduced, it was owed $300 million.
any said due to increased management focus most of the debtors were now in current with a consequent reduction in bad debts provision to 16%.
In 2002 the figure stood at 19%.
In its results for the 15 months to December 31 Tedco’s turnover increased by 674% to $31,7 billion.
Profit before tax of $9,3 billion increased by 570% while earnings per share increased by 591% to $33,83.
“Our retail division experienced a very weak trading period over Christmas,” Tedco said. “This was somewhat offset by a very satisfactory performance from our Julie Whyte operation which far exceeded expectations and budget. Attempts to securities our debtors book had to be set aside due to the dramatic rise in interest rates.”
In inflation-adjusted results however Tedco performed badly.
The company recorded an inflation-adjusted loss of $3,9 billion as a result of the net monetary loss adjustment of $12 billion.
In 2002 this figure stood at $5,6 billion.
The $3,9 billion was incurred during the current trading period.
Tedco said the high monetary loss adjustment was in line with the business model applied during the year, which was heavily biased towards credit sales within a hyperinflationary environment.