PRIVATE home developers accounted for 75% of sales volumes at MacDonald Bricks during the six months ended December 31 2014, the parent company has said.
BY VICTORIA MTOMBA
In a statement accompanying the group’s results, Radar Holdings said revenue during the period under review was 18% down to $3,7 million due to a decline in sales volume and softening of prices at MacDonald Bricks.
MacDonald Bricks production was 2% above during the same period in 2013 but it would have been higher if operations at Willsgrove plant had not been scaled down deliberately in the second quarter to match demand.
“Both plants continued to experience power outages. A total of 190 production hours were lost compared to 263 hours in the same period last year.
Sales volumes were down 13% compared to the same period prior year. Demand remained subdued as all major projects continued to receive erratic funding. Sales were mainly driven by private home developers which accounted for 75% of the volume,” the group said.
The group said bricks sales will continue to be driven by private home developers and marketing efforts would be directed towards the same in an effort to increase volumes.
Rental income grew by 10% above the prior year after the half witnessed a more consistent averaging 60%.There was a reduction in defaults rates due to a more stringent tenant screening.
“Occupancy is expected to remain flat while efforts will be directed at strict screening of potential tenants to avoid defaults,” the group said.
The company said the operating environment remained constrained due to poor funding of infrastructural projects and declining aggregate demand and liquidity challenges.
The company posted a loss for the period of $169 532 compared to a profit of $299 166. Finance costs for the group were up to $492 948 from $460 559, while borrowings were reduced to $6,3 million from $6,8 million.
The group said it will continue to restructure its debt and reduce short-term borrowings.