MacMed, the leading supplier of medical, surgical supplies, services and equipment to the medical industry, which was only listed in July last year has posted good results for the year ending December 1998 and expects its turnover for the current year to nearly double to $600 million.
Turnover increased 95 percent from $179.5 million in 1997 to $350 million, way ahead of the $306.2 million forecast in its prospectus.
Net operating income before interest and taxation was up 122 percent from $26.5 million to $58.7 million, also above the $43.5 million forecast.
But the forecast was way out on interest paid which was forecast at $1.3 million but ended up at $17.7 million but net income before taxation was only $1 million down from forecast at $41 million against the forecast $42.2 million.
Attributable earnings were up 64 percent from $20.4 million to $33.5 million, $3.5 million above the forecast $30 million largely because taxation was $5 million below forecast at $7.5 million.
The company says the increased level of borrowings was largely due to larger accounts receivable coupled with accounts payable as the company sought to pay creditors promptly to reduce the risk of currency losses.
Its balance sheet shows that it had accounts receivable of $125.4 million and accounts payable of $98.6 million.
Because of its commitment to improving health care for all Zimbabweans, the company says its broad range of medical products and services will support strong growth in both turnover and earnings in the current financial year.
The company will only start paying dividends in August.