Radar profit up on contained costs

Published: 27 March 2014

Rader Holdings Limited recorded a 30 percent rise in the profit for the year end December 31, 2013 from the previous period profit of $229 000 to the period under review profit which stands at $299 000.

The rise was as a result of a 9 percent decline in the administrative and selling expenses. The group saw the profit margin improve to 7 percent as compared to 5 percent achieved during the same period last year.

At $4,5 million, turnover is 4 percent behind prior year but management expects a recovery in the second half considering the current state of the order book.

In a statement released by the company, the group says the decline in turnover is attributable to reduced construction activity in the country and the incessant rains.

"Rental income on investment property remained at last year's levels.

Operating profit before finance charges increased by 12 percent compared to the same period last year. Overheads costs were 10 percent lower than last year following a successful restructuring of the Group and cost containment measures implemented at divisional level. Finance charges for the period under review stood at $460 559 compared to $502 674 in the prior period" reads the statement.

According to the statement during the half year, the company acquired mining equipment worth $290 783 as part of the continuing replacement program which will go a long way in reducing repairs and maintenance.

"Production costs remained high driven by the high cost of electricity and labour. Management continues to aggressively work on cost cutting initiatives" says the group.

Production volumes remained reasonably flat compared to the same period last year while recoveries of high value industrial and face bricks at both plants continued to improve.

During the period under review, power outages resulted in a combined production loss of 3,2 million bricks for the two plants.

"As reported previously, the company is looking at various ways of unlocking value from the existing land bank.

Approvals by various authorities are at different stages and steady progress has been made" reads the statement.
- zfn

Tags: Radar,