1 January 2018

Zimbabwe: 'Willdale to Benefit From Housing Development'

Brick manufacturer Willdale is optimistic that the company will benefit from the current housing development boom as well as the need for institutional and infrastructure development.

Chairman Alex Jongwe, said the board's confidence that the company will continue to operate as a going concern for the foreseeable future, is based on the successful implementation of its strategic plans that include investment in property as a hedge against inflation, continued support from current financiers and suppliers and other initiatives that are being undertaken to improve performance.

"The board is also encouraged by optimism in the construction industry that is driven by the current housing deficit of about 1,5 million units in the country. Demand for bricks for these projects will keep our order book full," Mr Jongwe said in the company's results for the year to September 30.

"Investment in property as a hedge against inflation is also expected to spur demand and our confidence of the future is therefore high. We will continue to focus on initiatives that grow margins. We will also consider alternative ways to source imported spares to support plant capacity availability," Mr Jongwe said.

In terms of production, the company said green and fired production volumes increased by 30 percent and 58 percent respectively despite the delayed plant. Capacity utilisation grew by 5 percent to 60 percent. Financially, Willdale reported a massive upsurge in after tax profit to $304 906, up from $32 125. However, the company said, profitability remains weighed down by interest expenses of $800 000.

Revenue for the period grew 26 percent to $9,7 million compared to prior year, driven by a 23 percent jump in sales volumes driven by individual home owners, cluster homes and schools as well as a 3 percent increase in average prices.

Net cash flows from operations also went up by $600 000. Capital expenditure for the year amounted to $300 000 and was financed through cash flows from operations. Borrowings closed the year at $7,1 million, up from $6,9 million.

Willdale said the borrowings consist of a five year loan overdraft for $2,6 million, from $2,7 million prior year secured by a mortgage bond of $5,7 million. The company leased assets under a three year finance lease, which in turn were sub-leased to a joint venture under similar terms as the head lease.

Zimbabwe

Liars - a Peculiar Headache for Foreign Poll Observers

Who should guarantee (or legitimise) a free and fair election in Zimbabwe? Put differently, who can ensure a free, fair… Read more »

Copyright © 2018 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.