The Standard

18 The Standard September 21 to 27 2014
Business
Radar back to profitability
There was little confidence in the economy,
company closures increased and
unemployment reached alarming levels
BY TARISAI MANDIZHA
Radar Holdings recorded an
after tax profit of US$288
006 for the year ended
June 30 2014 from a loss of
US$49,2 million in 2013.
Last year, Radar suffered a loss
from discontinued operations of
US$46,9 million after agreeing to dispose
its controlling shareholding in
Border Timbers Limited.
Revenue declined by 11% to
US$8,2 million as compared to
US$9,2 million in the comparable period
last year.
In a statement accompanying
the group’s audited results, Radar
chairperson Zondi Kumwenda said
the year under review was “very
challenging for the operating divisions”.
“The group experienced normal
trading patterns in the first half
and a market downturn in the second
half. There was little confidence
in the economy, investment continued
to decline, company closures increased
and unemployment reached
alarming levels. All these led to reduced
disposable income and reduced
demand for the group’s products
and services,” Kumwenda said.
Kumwenda said the sales volumes
dropped by 9% at Macdonald Bricks
from the prior year due to reduced
construction activity in Matabeleland.
“Demand for bricks was subdued
despite inroads made in supplying
products to Mashonaland, Midlands
and Masvingo regions. The division
experienced low orders in the second
half of the year, particularly as
a result of the reduced construction
activity in the Matebeleland region.
The subdued demand necessitated
the mothballing of Willsgrove factory
for four months during the wet
season,” Kumwenda said.
He however said Radar Properties’
occupancy level declined to 60%
in the period under review from 62%
last year compared with the previous
year.
“The operating environment continued
to be characterised by a high
rate of default on rental payments,”
Kumwenda said.
He added that the country at large
had a huge infrastructure backlog
which presents a potential market for
construction and building materials.
“In the short term, it is anticipated
that demand will slacken in line
with the declining economic activity.
In response management is focusing
on cost containment and process
efficiencies,” he said.
Zondi Kumwenda
Livestock situation
under control
BY OuR CORReSpONDeNT
The livestock situation in Matabeleland South
province, which lost over 12 000 cattle last
year, is now under control due to an improved
supply of pasture and water, an expert has said.
Over 12 700 cattle reportedly perished last year
in Matabeleland South due to drought. However,
Matabeleland South chief livestock specialist
Simangaliphi Ngwabi said this year the livestock
was not under threat.
“The situation is under control because there
was good rainfall this year. If you travel around
the entire province you can see that the condition
of our livestock is fair to good and I am confident
that we will have a fair season up to the onset of
the rain season. I am confident that we are not
likely to have any deaths and so far we have not
lost any cattle,” said Ngwabi.
Gwabi said some Non-Governmental Organisations
(NGOs) were also providing supplementary
feed to needy areas such as Gwanda South.
“There is feed which was provided by FAO and
farmers are buying it to supplement their pastures,
especially in Gwanda South where there is
a problem of grazing ,” said the official.
She said that during the same period last year,
the province had already recorded many livestock
deaths.
“In 2012, we started losing cattle as early as
March and so far we have not recorded any deaths.
The water situation is quite good and the boreholes
have not dried up. We had good rains that
actually raised the water table,” she said.
A visit to some areas in Matabeleland South
also confirmed that the situation had improved as
some dams still had water that could last up to the
beginning of the rainy season.
A farmer in the area, Thabani Mpofu, said due
to the improved water situation this year, the calving
rate was high.
“We hope this coming season we will again have
more rains and be able to restock our cattle that
have died in the past years due to drought,” said
Mpofu.
Matabeleland South region has an estimated
556 619 cattle, contributing about 10% to the national
herd. The region used to be the country’s
prime cattle producing area but the recurrent
droughts since 1992 decimated about 60% of the
province’s head.
The condition of livestock in Matabeleland South this year is
better than previous years.