Retail credit group, Tedco, which owns among others, Nyore Nyore Zimbabwe Furnishers, Radio Limited, CW Stores and the House of Kumali, had a 59 percent increase in pre-tax profits in the six months ending March, increasing from $41.7 million to $66.3 million.
It expects to better this performance in the second half of the year recording pre-tax profits of $135 million up from $103.7 million last year if there are “no material adverse factors”.
The company however says because of the unstable financial and economic circumstances the country is facing, it has adopted a cautious approach in providing for doubtful debts.
Turnover which stood at $150.3 million in the first six months of last year rose to $328.4 million and is expected to increase to $625 million for the year, up from $505.5 million last year.
The company says because of the effects of the depreciating Zimbabwe dollar on working capital requirements, and having regard to the benefits of conserving cash, it will be offering shares as an alternative to a cash dividend.
The group intends to commit its cash resources to installing new computer systems for both retail and manufacturing divisions to take it through the millennium.
It is also improving its transport fleet, acquiring new machinery, and establishing more retail branches.
Tedco is also planning to establish an Export Processing Zone factory.
It says some of this expenditure is being financed by the funds raised through last year’s rights issue with the balance coming from its own resources.
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