RADAR Holdings Limited has secured approvals from relevant authorities to pursue a land development strategy.
BY VICTORIA MTOMBA
The approvals were secured during the six months ended December 31 2015, the group said in a statement accompanying the financial results.
“The land development strategy is still being pursued to take advantage of the company’s existing urban land. The board and management are now focusing on executing the land development project,” the group said.
It said the prevailing economic environment characterised by tight liquidity and subdued demand was expected to persist in the construction sector. The business will continue to focus on improving on efficiencies as well as cost reduction measures, it said.
The group said its performance was negatively affected by worsening economic environment that resulted in low construction expenditure in both the private and public sectors.
Occupancy declined by 8% on the investment property.
Revenue for the group went down by 17% to $3 million due to a 9% reduction in sales volumes and sales mix skewed towards lower value products.
The gross profit margin for the group was down to 18% compared to 21% in the prior year and the group incurred a loss of $288 071 for the half year.
“Sales volumes continued to be dominated by individual developers who accounted for over 85% of turnover. The weakening of regional currencies resulted in imported bricks becoming relatively cheaper. There was no significant capital expenditure during the period under review,” the group said.
The group said compliance with environmental regulations remains a priority and carbon emissions were managed within acceptable levels.