RADAR Properties is geared for increased demand in bricks as the construction sector is projected to pick by year-end, but power outages at its Montgomery and Willsgroove plants accounted for loss of 3,2 million bricks in 2013. CHIEF REPORTER
The firm said the national housing backlog pointed to increased construction activity which translated to high demand for bricks. The construction industry had been experiencing financial constraints, hence the low activity.
In a statement accompanying the firm’s financial performance for the year ending December 2013, Radar Properties said the core business of bricks manufacturing was poised for improvement once liquidity challenges were a sorted.
“Demand for bricks is expected to improve in the final half of the year and stocks are available to cater for increased demand on common and industrial bricks,” the company said.
“Efforts will be directed at increasing production of face bricks to meet anticipated increased demand.”
Going forward, Radar Properties said management believed the core business of manufacturing bricks would improve once liquidity issues were sorted out.
“The housing backlog across the country also points to increased construction activities. The land bank will add to this once the potential is unlocked,” the firm said.
Zimbabwe has a housing backlog of over one million units.
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In the period under review, profit margin improved to 7% down from 5% achieved in the corresponding year.
“At $4,5 million, turnover is 4% behind prior year, but management expects a recovery in the second half considering the current state of the order books. The decline in turnover is attributable to reduced construction activity in the country and the incessant rains.”
