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Business Reporter
RADAR Holdings is targeting to produce 60 million bricks in the current financial year with a 19 percent increase in volumes anticipated after the completion of a dedicated power-line project at its Willsgrove plant in Bulawayo.Giving a trading update at the AGM held on Wednesday, Chief Executive Elias Hwenga said the group expects demand to increase on the back of rising construction work in mining and Government projects.

Sales in the four months to October 31 were marginally ahead of last year at US$3,1million but were 20 percent below budget. Profit in the same period was US$389 000 against US$304 000 last year.

Mr Hwenga said profits had slightly increased in spite of the difficult operating environment.

“The deep liquidity constraints are driving up the costs of funding to unsustainable levels but this had been partly offset by the savings in overheads after the re-organisation.”

Following the restructuring of the group, there was now a lean head office which would result in permanent savings on overheads of US$400 000. In the year to June, production volumes at Mac Bricks were up 5 percent mainly on the back of strong demand for face bricks.

Managing Director for the unit Lonely Nyathi said there had been an increase in demand in the first three quarters and a decline in the last quarter. Sales volumes, however, increased 12 percent overall. There had been uninterrupted power supply after a dedicated power line was completed and commissioned in the second half.

Mr Nyathi said the division continued to be constrained by the high costs of labour, electricity and coal. He, however, said operational costs remained a key concern with respect to competitiveness. Costs such as electricity, labour, maintenance and transport had affected operational efficiency.

However, the group said efforts were in place to ensure efficient energy consumption while the group has in place an equipment replacement strategy. Occupancy at Charter House was at 64 percent with Mr Hwenga adding that the group had received enquiries and as such the figure could rise.

He said the Bulawayo property project was coming up nicely with development work expected to commence next year as they were currently getting the necessary statutory approvals.