RADAR HOLDINGS LTD has been hard hit by weakening of regional currencies against base units prompting the importation of cheap face bricks in the country.
In a statement accompanying its half year results to December 2015, the construction concern said the harsh economic situation has seen the firm recording low construction expenditure in both public and private sectors.
“Sales volumes continued to be dominated by individual developers who accounted for over 85% of turnover. The weakening of regional currencies resulted in imported face bricks becoming relatively cheaper,” the company said.
The company which last month announced that it was seeking shareholder approval to delist from the local bourse reported a US$251 762 loss during the six month period to December 2015 from US$288 071.
Turnover for the group slumped by 17% to US$3 million due to a 9% reduction in sales volumes and sales mix skewed towards lower value products.
During the period, the firm had no significant capital expenditure.
Sales volumes continued to be dominated by individual developers who accounted for over 85% turnover.
Due to the need to settle debt, the company did not declare an interim dividend.
The firm’s total current liabilities stood at US$6,2 million by end of December 2015.
“The prevailing economic environment characterized by tight liquidity and subdued demand is expected to persist in the construction sector. The business will continue to focus on improving on efficiencies as well as cost reduction measures. The board and management are now focusing on executing the land development project,” the company said.
Announcing its intention to go private last month, the struggling firm said its current market capitalisation and illiquidity of shares do not allow it to fully take advantage of being listed on the ZSE.
In 2015, Radar traded a mere 79 483 shares valued at US$2 302.
“The reason for the proposed delisting is that the group continues to underperform. After tax profits declined from US$288 006 in FY14 to a loss of US$288 071 IN fy15. Furthermore, compounding the group’s underperformance are the costs associated with remaining listed on the Zimbabwe Stock Exchange,” reads a notice of the company’s extraordinary general meeting slated for February 23.