Radar gets approval for property development; revenue down 17%
RADAR Holdings says operating costs in the period July to October 2015 went down 13 percent resulting in a positive Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA).
Chief executive Elias Hwenga however said revenue went down 17 percent during the same period although profitability is on target as a result of reduced expenses.
He said the trading environment remains depressed but the company is dedicated to creating revenue streams from the land project after the group received approvals to move into property development.
“Regulatory approvals for property development have been granted and we are now moving into that space. We are currently evaluating projects to be undertaken but we will make a formal announcement soon,” he said.
The company plans to have a combination of stands and built up stands.
At F14, Radar announced plans to grow into a complete construction company as part of an ultimate aim to become a provider of housing solutions.
Hwenga said the objective is to make Radar Properties dominant going forward but the overall is to become a significant player in the construction sector.
In terms of construction, the group will leverage on its brick making unit MacDonald Bricks. The company has installed capacity of 80 millon bricks but the group added that volumes are likely to remain depressed until year end. FinX
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