Brick manufacturing firm Willdale Limited recorded increased revenue inflows in the first six months ending March 31 driven by a strong demand of bricks by individual home developers.
Turnover grew by 117% to $1,4 million. The company said despite the growth, it was unable to meet local demand as a result of supply side bottlenecks caused by low production.
In a trading update to shareholders, Willdale Limited chairperson Tendayi Mundawarara said strong demand for bricks should translate into positive returns if the company substantially increased its production levels.
“Efforts are currently underway to address supply problems. This should result in a shorter lead time and a reduction in back orders,” he said.
He said the company was in the process of exploring various funding options that would enable it to carry out critical refurbishments and re-tooling of the plant.
“This will only materialise if sufficient funding is secured within the shortest possible time to take advantage of the dry peak production period,” said Mundawarara.
“The resumption in mortgage lending and the expected boom in the mining sector should result in demand further strengthening in the second half.”
During the period under review, the company posted an operating loss of $812 419.
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“We will continue to engage lenders and shareholders to speed up the refinancing of operations despite the current challenges facing the company and the construction industry,” said Mundawarara
He said green and burnt brick production increased by 194% and 91% respectively over the comparative period. This followed on the capacity improvement programme that began in the second half of last year.
He however said production continued to be hindered by plant break downs, Zesa power cuts and insufficient working capital.
