Radar to focus on brick making and property development

Published: 30 September 2013

Radar CE Elias Hwenga told analysts on Friday that Radar will continue focusing on brick making and property development in the aftermath of the successful demerger of Border Timbers.

"Going forward the focus of the group will be on brick making and property development. The growth strategy will be executed through replacing any aging equipment to improve efficiencies, removing any form of bottlenecks to capacity utilisation and we will continue to engage our financiers to attract long term capital," he said.

He also indicated that the group will start monetising existing land bank.

"It is an opportunity that we really want to pursue and we are doing it very aggressively," he said.

Giving the financial highlights, FD Walter Zimunya told the meeting that the group's revenue increased by 11% to $9.2 million on the back of a 12% increase in sales volumes in Macdonald Bricks.

He indicated that operational costs increases were contained within inflation resulting in margins going up by 1%.

Furthermore he said improved internal control systems saw MB recording a profit of $1.7 million against $480 000 in the prior year.

Zimunya said the group posted a loss of $2.3 million from continuing operations after non recurrent items of $1.8 million.

Commenting on the balance sheet of the group, he said the remaining balance sheet is clean and solid with verifiable assets with a net asset position of $12.8 million while net current liabilities are seating at $4.2 million, due to the absence of medium-long term debt funding in the local market.

He said the cost of funds is still unbearable with interest rates showing no signs of coming down.

Giving an operational review of Macdonald Bricks (MB), MD Lonely Nyathi told the meeting that production volumes went up 5% compared with prior year and the year recorded an improved production mix which saw an increase in face brick production by 5%.

Hwenga said Radar Holdings will remain listed on the ZSE.

- zfn

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