Radar pursues growth through private developers
RADAR Holdings Limited says it would pursue market growth through private developers as they are now a key driver of construction in the country.
The company said this after its turnover for the year ended June 30 declined by 17 percent to US$6,8 million from US$8,2 million last year due to 11 percent reduction in sales volumes at Macdonald Bricks.
Average selling prices realised also softened resulting in lower margins. Occupancy at Radar Properties was flat. Impairment totalling US$179 302 were recognised.
“Consequently, operating profit declined to US$124 302 compared to US$1,3 million achieved in the same period last year. Net finance costs marginally declined from US$1 million to US$971 324 on the back of nine percent reduction in borrowings,” chairman Zondi Kumwenda said.
The group incurred a loss of US$288 071 for the year.
The company’s Macdonald Bricks division’s turnover declined by 17 percent to US$6,7 million compared to US$8,1 million last year.
The decline was as a result of an 11 percent reduction in sales volumes in the period under review. The construction industry remained subdued throughout the year. Liquidity constraints continued to affect construction projects.
“There was no significant capital expenditure for the division during the year under review,” said Kumwenda.
Sales volumes continued to be dominated by individual developers as well as the retail sector which contributed 73 percent of sales volumes for the year under review.
Rental income from Radar Properties division increased marginally during the period under review driven by residential properties while commercial property occupancy was flat. Voids and rental defaults continued to be high in the period under review.
No dividend was declared due to the need to reduce the company’s debt which reduced by US$599 835 to US$5 941 428.
The bulk of the debt remains short term in nature.