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Brick manufacturer, Radar Holdings’ revenue for the half-year period to December 31, 2015 was down 17 percent to $3 million compared to the previous comparative period.The company recorded a reduction in revenue for the period due to a 90 percent reduction in sales volumes and sales mix that was skewed towards lower value products experienced during the period.
Consequently the group’s gross profit margin was down 18 percent compared to 21 percent recorded in the prior year.
Radar Holdings incurred a loss $288 071 for the period under review.
“The group’s performance was negatively affected by the worsening economic environment that resulted in low construction expenditure in both the private and public sectors,” said the company in a statement. Borrowings during the period under review were marginally down to $5,5 million from $6,3 million much of which remains short term in nature.
The group’s shareholders last week gave greenlight for the firm’s exit from the Zimbabwe Stock Exchange.
According to the group shareholders that attended the EGM last Thursday authorised directors of the company to apply to the ZSE for the deletion of the company’s shares from the ZSE.
The effective date for the delisting of Radar’s shares is April 30, 2016. The holding company’s operations currently include: Radar Properties (Pvt) Ltd, Radar Investments (Pvt) Ltd and MacDonald Bricks. The group’s delisting has been necessitated by prolonged underperformance, which has constrained both its viability and ability to remain in compliance with the listing requirements of the exchange.
“Trading in the shares of the company has been limited and 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.
“Finally, the size of the company and the illiquidity of shares do 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,” said the group in earlier abridged information memorandum to shareholders.
Online Reporter