Harare — WILLDALE Bricks, one of the country's biggest brick manufacturers recorded a decline in sales volumes of 73 percent for the half year ending March 31,2009.

The decline was due to lower order intake caused by subdued activity in the construction industry.

The company recorded a turnover of US$397 000.

An operating margin of 17 percent was achieved following various cost cutting initiatives.

"Cash generation was extremely challenging given the liquidity shortage in the market. Low activity in the industry reduced demand for bricks especially in the second quarter of the period. Individual home developers dominated the market.

"Our products are still preferred by the market due to their high quality and durability," said the company.

The company said green production volumes declined by 51 percent compared to the same period last year.

The decline was a result of inadequate working capital, which caused shortages of mobile equipment and the unavailability of some plant.

Clay mining declined due to the shortage of mobile equipment.

Burnt production declined by 63 percent due to labour shortages especially in the first quarter, and shortages of coal.

Production figures are expected to increase during the second half of the year, which is traditionally the peak period of operations.

On land acquisition, the company said they continued to engage the city council.

"The liquidity crisis prevailing in the economy continues to delay the return of the construction industry to full operations.

"We are however, encouraged by successes so far of the inclusive Government in mobilising funding for the economy and are confident that soon it will be the turn of the construction industry to benefit from these initiatives. The company said the success of the industry would depend on raising adequate funding to improve capacity.

"We have already begun initiatives to raise funding to refurbish plant and equipment in readiness for the upturn in the industry.

Emphasis in the short term will continue to be placed on efficient management of available working capital and achieving a low break-even point.

The company will explore market opportunities in Zambia and Mozambique.