Zimbabwe’s leading brick maker, Willdale, says it is banking on US$14,5 million in land sales to stabilise its finances, as it moves to shore up liquidity and steer itself back to profitability.
The group plans to generate the funds in the financial year ending September 30, 2026, primarily through the disposal of portions of its land bank, following a deterioration in its financial position.
Willdale widened its loss to US$953 490 for the year-ended September 30, 2025, reflecting constrained working capital, reduced production throughput and rising operating costs.
In response, the company has rolled out a turnaround strategy centred on unlocking value from its property portfolio.
“The company has obtained a subdivision and development permit for the first phase (50 hectares) of Dale properties, and sales of industrial and commercial stands are expected to commence shortly, with anticipated proceeds of approximately US$11 million in 2026 financial year,” Willdale said in its annual report for the period ended September 30, 2025.
“Additionally, a permit for 42 hectares at Tenerife is at the final review stage, with expected proceeds of US$3,5 million in the 2026 financial year. These will be used to finance acquisition of technologically-advanced equipment for brick manufacturing to increase operational efficiency and improve working capital position.”
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The company’s current liabilities exceed its current assets by about US$2,9 million, leaving it in a negative working capital position.
Despite these pressures, directors maintain that the business remains a going concern, citing the anticipated inflows from planned property sales.
“A growing construction industry, combined with our funding initiatives and production improvements, strengthens our confidence in a positive outlook,” Willdale chief executive officer Nyasha Matonda said.
“Land-related revenues are expected to meaningfully support cash flows over the next two years.”
Revenue declined by 42% during the period under review, largely driven by a 41% drop in sales volumes, resulting in an operating loss and prompting the company’s auditor to raise concerns.
“These conditions along with other matters as set forth in Note 24 indicate the existence of a material uncertainty that may cast significant doubt on the ability of the company to continue operating as a going concern,” BDO Zimbabwe said.
During the year, the board resolved to reclassify some of the company’s land from property, plant and equipment to investment property.
Part of the land is currently occupied by illegal settlers, although the company has secured an eviction order.
No provision has been made for a potential loss, as management is pursuing the removal of the settlers and believes the prospects of success remain high.