Radar Holdings recorded an after tax profit of US$288 006 for the year ended June 30 2014 from a loss of US$49,2 million in 2013.
BY TARISAI MANDIZHA
Last year, Radar suffered a loss from discontinued operations of US$46,9 million after agreeing to dispose its controlling shareholding in Border Timbers Limited.
Revenue declined by 11% to US$8,2 million as compared to US$9,2 million in the comparable period last year.
In a statement accompanying the group’s audited results, Radar chairperson Zondi Kumwenda said the year under review was “very challenging for the operating divisions”.
“The group experienced normal trading patterns in the first half and a market downturn in the second half. There was little confidence in the economy, investment continued to decline, company closures increased and unemployment reached alarming levels. All these led to reduced disposable income and reduced demand for the group’s products and services,” Kumwenda said.
Kumwenda said the sales volumes dropped by 9% at Macdonald Bricks from the prior year due to reduced construction activity in Matabeleland.
“Demand for bricks was subdued despite inroads made in supplying products to Mashonaland, Midlands and Masvingo regions. The division experienced low orders in the second half of the year, particularly as a result of the reduced construction activity in the Matebeleland region. The subdued demand necessitated the mothballing of Willsgrove factory for four months during the wet season,” Kumwenda said.
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He however said Radar Properties’ occupancy level declined to 60% in the period under review from 62% last year compared with the previous year.
“The operating environment continued to be characterised by a high rate of default on rental payments,” Kumwenda said.
He added that the country at large had a huge infrastructure backlog which presents a potential market for construction and building materials.
“In the short term, it is anticipated that demand will slacken in line with the declining economic activity. In response management is focusing on cost containment and process efficiencies,” he said.
