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<\/a><\/p>\n18 December 2011<\/p>\n
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ZIMBABWE Stock Exchange-listed firm Radar Holdings Limited has adjusted its full-year turnover forecast by 18,9 percent from US$53 million to US$43 million following the disposal of loss its loss-making unit, UBM.<\/p>\n
Group turnover for the four months to October amounted to US$14 million, which was about US$3 million less than the projected revenue.<\/p>\n
Group chief executive Mr Elias Hwenga, giving a trade update at the company’s annual general meeting recently, said profitability is expected to improve with the hardware business expected to contribute significantly.<\/p>\n
Radar’s revenue for the year ended June 2011 was US$37 million against the period comparative of US$24,9 million.<\/p>\n
The group was targeting US$40 million in revenues for the year to June 2011. The increase in revenues was mainly attributed to an increase in sales volumes across all business.<\/p>\n
A new plant was installed in July while the second one arrived during the first week of December.<\/p>\n
About 730 hectares of timber had been lost due to fire but the group had embarked on a replanting exercise.<\/p>\n
UBM was sold to a management consortium for an undisclosed sum.<\/p>\n
Radar wholly owned UBM, which is among the country’s leading building materials suppliers.<\/p>\n
For the year ended June 30, 2011, UBM suffered an operating loss of US$3,3 million faced with many challenges including stock pilferage and poor credit control resulting in stock and debtors write-offs.<\/p>\n
The business had not been able to restock at the correct levels since the introduction of the multiple-currency system in 2009.<\/p>\n
This has been largely attributed to the unavailability of appropriate funding at competitive interest rates.<\/p>\n
During the four months, the group said the MacDonald Bricks plant had been affected by power cuts amounting to 676 hours or 2,7 million bricks. A dedicated power line had been installed even though at a premium.<\/p>\n
Radar has secured a seven-year offshore facility at 8 percent.<\/p>\n
Radar owns 51 percent of Border Timbers, that is listed separately on the Zimbabwe Stock Exchange.<\/p>\n
It also owns 100 percent of McDonalds Bricks and associated clay mines located outside Bulawayo.<\/p>\n
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