Radar moves to delist from ZSE

HARARE - Brick manufacturing concern, Radar Holdings Limited (Radar) is moving to delist from the Zimbabwe Stock Exchange (ZSE), the group has said.

In an abridged information memorandum to shareholders and notice of an extraordinary general meeting to be held later this month, the group said the reason for its delisting proposal was under-performance.

“The reason for the proposed delisting is that the Group continues to under-perform. .  . Furthermore, compounding the group’s under-performance are the costs associated with it remaining listed on the Zimbabwe Stock Exchange that are exuberant,” Radar said.

The ZSE costs for the group include (among others) annual listing fees (amounting to +/-$4 271); auditors’ costs associated with maintaining a ZSE listing, that is, interim and final accounts (amounting to +/-$46 000).

Other costs also include expenses associated with publications of results and notices and any other corporate actions (amounting to +/-$18 000), and transfer secretaries maintenance of the company share register (amounting to +/-$6 000).

“Secondly, trading in the shares of the company has been limited and the absence of sufficient buyers and sellers of the shares has meant that the shares are relatively illiquid.

“During the 2015 calendar year, Radar traded a mere 79 483 shares valued at

$2 302, further reiterating the illiquidity of the shares,” the brick maker said.

Radar also informed its shareholders that the size of the company and the illiquidity of shares did not allow it to fully take advantage of being listed on the ZSE.

”For these reasons, the board believes that it is in the best interests of the company and the shareholders as a whole if the approval of the delisting occurs as soon as possible,” the group said.

In order for the group to delist it needs the approval of at least 75 percent of the company’s minority shareholders, according to ZSE requirements.

According to the circular, the company will remain a public company but will not be listed.

The struggling company’s after tax profits declined from $288 006 in 2014 to a loss of $288 071 in 2015.

In its results for the full year to June 2015, Radar said tight liquidity conditions prevailing in the country had affected its major customer — the construction industry — leading to an 11 percent decline in sales.

The group’s operating profit slumped to $124 302 from $1,3 million realised prior period, while net finance costs marginally declined to $971 324 from $1 million on the back of a nine percent reduction in borrowings.

The holding company’s operations currently include: Radar Properties (Pvt) Ltd, Radar Investments (Pvt) Ltd and MacDonald Bricks.

 

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