Brick demand continues

According to the Radar Holdings Limited unaudited results for the half year ended 31 December 2010, turn over at Macdonald bricks grew by 40 per cent in comparison to the previous year.

Radar Holdings group of companies include Border Timbers, Radar Investments, Radar Properties. Radar Investments has a portfolio comprising of MacDonald Bricks and United Builders Merchants (UBM).

The group results for the half year to 31 December 2010 show a commendable improvement in capacity utilisation and turnover growth, read the statement.

The results show that United Builders Merchants (UBM) registered a positive growth with turnover increasing to US$6.3 million compared to US$3.5 million the previous year.

The group cited small and numerous entrants in the building materials and hardware retail market as a major challenge.

Operating margins are under pressure due to increased competition from small but numerous entrants in the building materials and hardware retail market.

For Border Timbers Limited, turn over for the period under review increased by 43 per cent to US$9.7 million compared to US$6.8 million the previous year.

This is mainly attributable to the recovery of the poles market, increased sales volume on kiln dried timber on the local market and improved selling prices on the export market, read the statement.

According to the unaudited results, poles business recovered with an increase in the demand due to the focus on rural electrification projects.

The Zambian contract was the major contributor to revenue. Locally, the revived infrastructure maintenance by the Zimbabwe Electricity Transmission and Distribution Company has seen local demand increasing, read part of the results.

The export market has been recovering with prices firming up in the Southern region. The board of Radar Holdings said they were confident that the economy would continue to register positive growth.