adminmay be offloaded by the company.
UBM is among the country’s leading building material suppliers.
Radar Holdings has issued a cautionary statement on the disposal of UMB.
In the six months to June 30, 2011, UBM suffered an operating loss of US$3,3 million.
During the year, the subsidiary faced many challenges, including stock pilferage and poor credit control, resulting in stock and debtors’ write- offs.
“The business has not been able to restock at the correct levels since the advent of dollarisation,” said the company
“This has been largely attributable to the unavailability of appropriate funding at competitive interest rates . . . The business can be turned around with the correct level of working capital support. The board is considering the future of UMB.”
Save for UBM, all group businesses have been able to fund working capital from internally generated fibnance and borrowings have been used for capital expenditure.
During the period under review, group revenue was US$37 million compared with US$24,9 million the previous year..
The increase in revenue was attributed to an increase in sales volumes across all businesses.
Radar said Border Timbers, which posted a profit of US$5 million, drove group profit for the year of US$2,2 million.
Apart from UBM, Radar owns 51 percent in Border Timbers, listed separately on the Zimbabwe Stock Exchange.
It owns 100 percent of MacDonalds Bricks and associated clay mines located outside Bulawayo.
UBM began operations in 1960, trading as A.F. Philip & Company. It is expected to benefit from the booming construction sector on the back of a growing economy
On the ZSE yesterday, Radar closed at US20c with no offers.
Radar and Border Timbers are some of the tightly held counters on the ZSE, going for several months without attracting trade.
Online Reporter