First Mutual to roll out medical facilities by year-end
LIVINGSTONE MARUFU
Listed diversified group, First Mutual Holdings Limited is set to roll out several clinics and pharmacies before year-end, as it moves to control the value chain.
The company’s group CEO, Douglas Hoto told Business Times that resources have been mobilised for the ambitious project to be undertaken by its unit, First Mutual Health.
“We expect to be operational by year end, with US$500,000 already mobilised for the project,” Hoto told this publication.
The forward integration move, Hoto said, would make First Mutual Health a one-stop-shop and a giant in the health services sector.
The group would in the initial phase roll out the clinic network and open pharmacies through partnership arrangements.
Hoto said the group’s solid balance sheet, coupled with robust strategies are expected to deliver sustainable growth and value creation for all stakeholders, despite a turbulent operating environment and the Covid-19 pandemic.
He said the group will continue to invest in core businesses and complementary areas.
In its financial results for the 12 months to December 31, 2020, First Mutual Holdings’ profit went up 1791% to ZWL$2.3bn from ZWL$123.9m reported in 2019, largely due to a massive increase in investment income.
The company recorded some marginal increases across most divisions due to the slowing down of inflation and the stability of the foreign currency exchange rate.
Gross premium written grew 2% to ZWL$5.9bn in inflation adjusted terms as a result of organic growth on the existing portfolio and the continuous revaluation of insurance policy values in line with inflation to ensure clients had adequate cover.
Rental income for the year amounted to ZWL$257m and was ahead of prior year by 9%.
The real growth, relative to prior year, was due to quarterly rental reviews and increases in occupancy rates in retail and residential properties.
The group achieved investment income of ZWL$346m for the year under review compared to an investment loss of ZWL$1.8bn in 2019.
The investment gains were driven by fair value gains on listed and unlisted equities in line with the general performance of the ZSE Industrial Index.
The group’s total assets appreciated in value by 43% at December 31 2020 compared to December 31 2019 with the increase mainly attributable to the fair value adjustment on investment properties and listed equities as well as revaluation of net foreign currency denominated assets.
During the last quarter of the year, the group commenced the process to implement a solar powered energy solution for the company’s head office in Harare.
