Published: 30 September 2013

CONSTRUCTION group Radar Holdings plunged to a $49 million loss for the year ended June 30 2013 after disposing of its 51 percent controlling interest in Border Timbers Limited to focus on its core business.

Revenue came in at $9,2 million from $8,2 million in the same period last year with the loss from continuing operations only worsening to $2,2 million from a $736 annual profit in 2012, but a $47 million loss on disposal of Border Timbers Limited inflated the loss.

The decline in profits to $2,2 million from continuing operations was a result of a 23 percent increase in net finance charges to $937 000.

Radar Holdings owned 22 005 087 ordinary shares in Zimbabwe Stock Exchange listed timber group Border Timbers, but distributed its interest in Border Timbers in May this year through a dividend in specie.

However, Radar contends that its shareholders did not suffer a loss in real terms since they received shares in Border Timbers at individual level.

"None of the shareholders of the group suffered any loss as a result of the transaction as they continue to won the same shares in the two groups."

The disposal of Border Timbers resulted in the group’s total assets decreasing from $174 million in 2012 full year to only $21,5 million.
- herald

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