Radar revenues up

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459

Radar Holdings Ltd recorded an increase in revenue due to improved sales volumes in all its operation with Border Timbers leading the pack.

The listed company owns United Builders’ Merchant (UBM), Border Timbers and MacDonald Bricks.

In a statement accompanying the group’s financials, Radar said it realised revenue of $37 million for the full-year ended June 30 against $24, 9 million in the previous year.

“Capital expenditure across the group for the year amounted to $4,9 million of which $2 million was in plantation development and $2,6 million in property, plant and equipment. The expenditure is in line with the asset replacement programme which was initiated in the 2010 financial year and is expected to be complete in the next two years,” said Radar.

The group said except for UBM, the business units had been able to fund working capital from internally generated funds and borrowings had been utilised to fund capital expenditure.

It said assert replacement at Border Timbers Limited was on course and $2, 1 million had been spent on equipment.

The bulk of the equipment is for harvesting and plantation road maintenance operations and a positive had been noticed.

However, labour costs, over reliance on diesel generators for production at sawmills and repairs at $2, 3 million are having an impact on operating margins at Border Timbers.

Production levels at MacDonald Bricks division which registered volume increase of 43% from last year could have been higher had it not been for increased power outages at the Willsgrove plant.

The Willsgrove plant was restricted to three-day power availability per week impacting negatively on drying operations.

Despite a high demand for bricks and plans to scale up production in the coming year, the unit suffered a $216 000 from its staff through falsification of brick sales.

This contributed to a loss before tax of $320 000 and police have been engaged to bring perpetrators to book, though culprits are still on the run.

Similarly, UBM revenues were below set targets owing to frequent stock outs on key value items and stock pilferage and poor credit control.

This resulted in stock and debtors write-offs during the year.

The unit posted an operating loss of $3, 3 million and the board is considering the unit’s future.