RADAR Holdings Ltd says output in all its operations is much higher than in the last quarter to June, helped by re-investments and refurbishments it made in subsidiaries.
In a statement attached to the group’s financials, Radar says demand for the group’s products has remained strong in the same period.
“Post year end, demand for the group’s products has remained strong. The investment in new equipment in harnessing operations and considerable refurbishment of saw milling equipment has started to bear fruit. Production output at all operations is at higher levels than in the last quarter of the year to June 2010. Power outages have continued to impact on production.”
But the company is optimistic that negotiations with Zimbabwe Electricity Transmission and Distribution Company on direct power imports from Electricidade de Mozambique (EDM), which are already at an advanced stage, will pay off.
The listed company’s fortunes changed in the course of the year, moving from a loss making to a profit position.
Radar posted a modest US$4,577 million profit during the 12 months to June 30, a marked improvement from the US$1,1 million loss during the same period last year.
The company, which owns United Builders’ Merchant, Border Timbers and MacDonald Bricks, has attributed its change of fortunes to a strong overall performance throughout the year.
This was a period which it described as “dominated by transition from a previously unknown level of hyperinflation to a dollarised environment.”
“This has not only brought with it predictability but high cost of real money, liquidity constraints and unmasked deficiencies in the way the country conducts business,” said Radar.
Radar sales grew, with turnover doubling in the comparative period in the prior year.
Results released by Radar this week showed that the operating environment is still constrained by very expensive borrowings, high labour costs, unsettling rental charges, intermittent power cuts and massive competition from other products from the region.