Med Rescue International (MRI), the medical emergency company, is to end its First Division football sponsorship in a bid to aid its balance-sheet that has been dented by legal costs as a result of the loss of a big government tender.
The company, which released its results on Friday, came out flat due to a combination of factors that the management believes the bulk of which are once-off costs and should not be reflected again.
According to the half year financial results to the end of December 31, 2006, revenue jumped by 14 percent to P 10.2 million from P 8.9 million in the previous year, while net profit after tax stood at P 1.3 million against P 1.6 million.
The revenue was blighted by huge administrative costs?the involved fuel costs, maintenance of its fleet ? and the long running legal battle that resulted from the loss of a lucrative road assistance tender to its competitor in the market.
The administrative cost went up by 22 percent, including the legal case in which they spent close to a million. However, the company hopes to recoup P336 097 which was paid as part of the legal case.
MRI?s Acting Managing Director, Thabiso Kebotsamang, said as part of the plan for the company to find its feet in the competitive market, it is involved in a number of initiatives that should broaden its income streams going forward.
The new deals with cell-phone companies and medical aid schemes are expected to be signed in the near future. Further, the company is expected to enter into a strategic partnership with a new hospital and will provide training facilities and a trauma rehabilitation facility.
The company is also aiming to open a strategic evacuation office in Selebi Phikwe and a road assistance facility which are expected to bring cash into its coffers.
?Plans are in lace to increase revenue even further and to keep expense in check. Another substantial contract was tendered for and should be awarded in the next few months,? the company said on Friday.
It added: ?The Company continues to invest in people, equipment and new technologies, with the addition of telemedicine, to take advantage of the many opportunities developing within the Botswana economy.?
?We have purchased two new ambulances and we hope to get another one in the near future. That should reduce the maintenance costs of our fleet and make some savings,? Kebotsamang said.
Last year, MRI?s emergency service was enhanced with the purchase of a neonatal intensive care incubator, which places it in the unique position of being the only service provider that can safely transport neonates.
The company has proposed a dividend of four thebe for shareholders who bought before April 13.