- BridgeFort report subdued sales volumes
- USD170,000 received towards legacy debt
- Tight fiscal and monetary stance by the govt has however been a significant drop in the real value and volume of sales.
ZSE Listed private equity company, BridgeFort Capital Limited (BridgeFort formerly known as MedTech Holdings Limited) recorded a 67% drop in sales volumes for distribution and 58% for manufacturing {with regards to its Class A Portfolio} for the quarter ended 30 September 2022 compared to the same period last year.
The significant drop was largely as a result of the huge drop in supermarket sales and demand in general. The company said this decline was largely as a result of the policy changes within the period under review.
The company received a payment of USD170,000 towards its legacy debt at the end of October however USD640,000 remains outstanding.
In the trading update BridgeFort noted that with regards to its Class B Portfolio the company is pursuing disposal of 8,072 m2 valued at USD200,000 under which the company will enjoy USD100,200 equivalent of its Class B share of 50.1%.
Class A Portfolio for the company refers to consumer goods mainly Medtech Business whilst Class B portfolio comprises an effective 50.1% of a stand registered in the name of MedTech Distribution.
Operating Environment
According to the company, the tight fiscal and monetary stance is achieving the desired results and the company said this is an encouraging step in the right direction. The company added that the impact has however been a significant drop in the real value and volume of sales.
BridgeFort said that such significant policy changes are inevitably painful although the company envisage some recovery in sales as the market recovers from the shock as the year progresses.
“In August, Government stopped payments to suppliers to review the pricing of invoices. Whilst payments have resumed, it seems that these are at a slower pace than prior to the stop in payments. If government is able to maintain their spending in line with revenue collection this will halt money supply growth and hence inflation”, the company said.
About BridgeFort
BridgeFort Capital Limited is a ZSE listed private equity company which exists to create sustainable shareholder value for shareholders in the various classes of listed shares. This will be achieved through the acquisition of unlisted businesses where the skills of the team will be applied to support the investee company in delivering on their goals.
BridgeFort consists of a number of divisions containing various assets, the economic interests of which are represented by different classes of listed shares within BridgeFort. Divisions shall target different sectors of the economy and may contain a single asset or multiple assets.
