RICK maker, Willdale Limited (Willdale) expects cash from its land bank sales to fuel production and support business operations during the second half of its financial year ending September 30, 2026, as it faces declining revenue.
The strategy comes after revenue fell 27% to US$2,28 million in the six months to March 31, 2026, as sales volumes declined by 50% owing to limited working capital which restricted production and left the company unable to meet market demand.
Consequently, the firm recorded a loss of US$1,5 million during the half-year, although this was a 16% improvement from a year earlier.
The urgent need for fresh liquidity was evident in Willdale’s current ratio of just 0,63 times, leaving the company with only US$0,63 in current assets for every US$1 of short-term liabilities at the end of the half year.
“The outlook for the remainder of the financial year is positive. The company’s primary focus remains the mobilisation of working capital resources to support increased production and improved stock availability,” Willdale chairman Brian Mataruka said in a statement attached to the firm’s half year report for the period ended March 31, 2026.
“Management expects higher production volumes during the dry season to translate into stronger sales performance and improved operating results.
“The company also expects continued cash generation from its land development projects to strengthen as stand sales gain momentum.”
Included in its land development projects is its Smartsuburb investment in Mt Hampden.
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“Subject to the granting of the necessary approvals, saleable space within the company’s land banks is anticipated to increase from the fourth quarter, creating additional opportunities to generate cash flows and support business operations,” Mataruka said.
“The board believes that the combination of development of the commercial real estate portfolio, enhanced production levels and sustained market demand provides a clear pathway towards improved financial performance in the second half of the year.”
The urgency for fresh capital was evident as working capital constraints left Willdale’s extrusion output 29% below the prior-year level during the review period.
“Management is actively pursuing funding initiatives aimed at increasing plant capacity utilisation to at least 70% by the fourth quarter.
“This will position the company to fully leverage the peak dry season [May–November], when operating conditions are most favourable for increased production and improved efficiencies,” Mataruka said.
“In parallel, efforts to acquire a new plant are at an advanced stage, with funding alternatives having been streamlined and under evaluation, by the company’s financial advisors.
“Together with continued development of the company’s commercial real estate, these initiatives are expected to enhance production capacity, strengthen market responsiveness and support long-term growth objectives.”
Despite the challenges, the company maintained its strong market position despite increased competition within the sector as demand for bricks remains resilient, underpinned by continued investment in cluster housing developments, shopping malls, and educational infrastructure projects.
“The sustained level of activity across these segments provides a solid platform for growth as production volumes improve and stock availability increases,” Mataruka said.
“The board remains confident that the company is well positioned to capitalise on these opportunities.”
