HomeBusinessLack of funding stalls Radar projects

Lack of funding stalls Radar projects


RADAR Holdings says a number of construction projects lined up for 2015 in the Matabeleland and Midlands provinces are being stalled by lack of government funding.


Radar Holdings group financial director Walter Zimunya told Southern Eye Business that the liquidity crunch and lack of funding from the government threatened the projects.

“There are a number of construction projects expected in Matabeleland and the Midlands during this financial year, but most of them are waiting for funding from the government. We have some projects at the Midlands State University, Joshua Mqabuko Nkomo International Airport and National University of Science and Technology, but due to lack of funding, they remain frozen until they get the funding from the government,” Zimunya said.

He said Macdonald Bricks has the capacity to increase production to meet anticipated increase in demand.

Radar Holdings group financial director Walter Zimunya
Radar Holdings group financial director Walter Zimunya

The group’s revenue for the third quarter to September 2014 slumped 20% compared to the same period in 2013 due to depressed brick sales that fell 16% as construction activity slowed. The revenue was depressed in spite of production being 15% higher than in the same quarter in 2013.

Zimunya told stakeholders in 2014 that the operating environment was tough and was not expected to improve in the short term and the group was focusing on improving the top line.

Faced with a depressed market, he said the company was now focusing on cost containment and improving production efficiencies.

Occupancy in the commercially leased property fell marginally by two percentage points to 60%.

He also said the uptake of bricks in Bulawayo was now low and focus was on expanding into other towns.

The group had a net current liability position of $2,421 million as at June 2014 compared to $4,238 million in 2013.

It recorded a net profit of$288 000 in the 2013 financial year from a loss of $2,300 million in the previous year.  In 2013, Radar distributed its entire shareholding, 51%, in Border Timber to shareholders through a dividend in specie.

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