• Bridgefort’s ability to pay off its current foreign debt of ZAR27,7 million (ZAR35.7 million) was negatively impacted by the macroeconomic environment
• Profit after taxes decreased by 16% throughout the dollarization period(2018-2019)
• Due to strict cost control, the company was able to maintain its market share and sales even in the middle of such a financial calamity

Overview of financials

 This article will take a detailed look at Bridgefort's management strategies and financial results to examine how it has been able to navigate the Zimbabwean economic landscape against the backdrop of a drought-induced recession, a de-dollarized environment, the Covid-19 era, and the current economic climate. Bridgeport Capital was formerly known as Medtech Distribution. The company's full-year financial results from 2019 to 2021 are listed below. For 2022, the business had officially changed its trading name from Medtech to Bridgeport, and the only financial information accessible for that period was 2022's audited half-year financials.

 Interestingly, despite operating in different economic environments during the five years under review, the company consistently maintained a profit. Profit after taxes decreased by 16% throughout the dollarization period(2018-2019), from US$1.037 million in 2018 to US$868K in 2019. Despite this decline in profitability, the company's turnover increased from US$12.3 million to US$70.48 million in 2019, and its operating profit skyrocketed by 352%, indicating that it had lower fixed costs and a better gross margin, which meant that it was growing its sales more quickly than its costs and giving management more discretion in setting prices. A great indication of excellent management this is.

                                                                           Extract of Bridgefort  Capital Financials:Equity Axis Research

The extract above, examines revenue, operating profit, and profit ade-dollarisation  de-dollarisisation(2020-current). The company still enjoyed a prosperous period despite tntroduction of the RTGS as the primary accounting denomination. It is sthe afe to assume that profitability of the FY2022 financials will most likely be more consolidated and a figure greater than the previous similar period is projected given that the FY2021 financials are 9% higher than the HY 2022.

The business recorded a negative operating profit in 2021, which is similar to an operational loss or higher-than-average fixed expenses. The increased trajectory of revenue from 2020 to 2022 is a strong sign that there will be more work for current staff. They frequently wind up filling in for workers who have quit.

This reduces the amount of time available for routine tasks. New employees had to go through an adjustment phase during which they learn how to perform their duties. Productivity experienced a slight decline throughout this training period but this bolstered the effectiveness of the employees. The company's strong turnover during the recession in 2019 up post-Covidd-19 and post Covid is explained by this increase in turnover. The company's performance during the past five years is depicted in the graph below.

Background-2019

As the drought got worse in 2019, millions of people in Zimbabwe were experiencing misery, starvation, and anarchy as the economy was on the verge of "melting down." A population already under strain from shortages of essential groceries, fuel, and medications saw annual inflation nearly double to 175% in June, according to official numbers released in 2019.

Many were reminded by the soaring prices of the economic catastrophe brought on by Mugabe's polices ten years prior, when hyperinflation wiped out supplies of staple items and forced the southern African nation to abandon its currency. Due to a severe drought, there had been rolling power outages and additional hardshtoly, in an effort to eliminate subsidies, the government continually raised the price of petrol and electricity. To safeguard the local currency, the central bank increased interest rates to 50% and outlawed transactions invBridgeportdstrategy

Bridgefort stategy-Cost Control

By controlling and analyzing financial data, cost control is a technique for lowering business expenses. Consolidating costs enables businesses to forecast expenses more accurately and intelligently, determine wherethey may cut costs, and spot areas where the y are overspending.Bridgefort’s itsty to pay off their current foreign debt of ZAR27,7 million (ZAR35.7 million) was negatively impacted by the macroeconomic environment but this was a blessing in disguise because the company decided to delay the payment. Delaying the remittance of foreign payments was a risk because it could have resulted in sustockoutsages and stock outs. The company took advantage of the uncertain macroeconomic and trading environment to delay payments of debts as a measure of controlling their costs which paid off.

Due to strict cost control, the company was able to maintain its market share and sales even in the middle of such a financial calamity. This strategy has always been employed by the company to address challenging economic conditions.

Change from Medtech to Bridgefort

Change of management

To prosper and expand, businesses need organizational transformation. The successful adoption and utilization of change withiarethe organization is driven by change mancanployees are able to comprehend the shift, commit to it, and perform wel l while working it.On June 13, 2022, drugBridgeportor Medtech changed its name to Bridgefort Capital Limited. Following resolutions adopted at the company's EGM in November 2021 that changed MedTech's capital struct ure, the firm decided  to change its name.This goes hand in hand with the company’s strategy of change management.

Along with the name change, Bridgefort also hired Sithulisiwe Ncube and Michael Nicholson as new financial directors. Nicholson has been in the business for more than 20 years as a Chartered Accountant. Ncube had eight years of experience and is a licensed attorney. In addition to Vernon Lapham, other Bridgefort directors include Pride Masamba, Christian Beddies, William Marere, and Oliver Lutz.

The struggling medical and cosmetics supply company suggested changing its legal structure to become an investment holding company, which owns and controls operational enterprises under the Bridgefort Capital banner rather than holding any of its own operating units. After omising start to 2020, the company had found it difficult to shareholders value as its shares have fluctuated between 17 and 30 cents each. Due to the plans to alter the structure, it has been trading with cautionary remarks for the better part of the last two years.

Looking ahead

Given the impending recession, Zimbabwe's high inflation rates, and the nation's ongoing electrical issues, we anticipate Bridgefort Capital to keep improving its operating tactics and controlling expenses. If we think back to when interest rates of 50% were considered to be a record, they are now over 200% and are predicted to stay there, posing difficulties for the borrowing needs of the firm.