Radar revenue declines

HARARE - Industrial concern Radar Holdings (Radar)’s revenue for the year to June 2014 slumped by 12 percent to $8,2 million from $9,2 million due to depressed economic activity.

The group’s chairman Zondi Kumwenda said the continued investment decline, little confidence coupled with reduced disposable incomes significantly reduced demand for the group’s products and services.

“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,” said Kumwenda.

In the period under review, profit before tax for the group was $335 793 compared to a loss before tax of $1,9 million registered in prior year.

Profit for the year grew to $288 006 compared to a massive loss of $49,2 million in prior comparable period.

Finance costs were reduced by 11 percent to $1 001 408 as a result of improved cash holdings over the year.

Ongoing debt restructuring efforts resulted in $1,2 million being restructured from short to long term.

The group’s bricks making unit’s sales volumes dropped by nine percent from prior year due to reduced construction activity in Matabeleland region.

Kumwenda said that 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 Matabeleland region. The subdued demand necessitated the mothballing of Willsgrove factory for four months during the wet season,” he said.

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