Willdale pins hope on construction boom
ZIMBABWE Stock Exchange (ZSE)-listed brick maker, Willdale (Pvt) Limited, expects to leverage on the ongoing infrastructure development boom to boost production and grow revenue earnings and profits.
In a statement accompanying the company’s financial results for the year ended 30 September 2023, Willdale chairman, Mr Cleophas Makoni, said demand for bricks was relatively high throughout the year under review, driven by housing development, construction of educational facilities and shopping centres.
He said volumes were, however, five percent below the prior year largely due to supply side challenges caused by electricity shortages.
“The push towards higher margin brick types continued to drive margins up. The brand remained dominant in the market despite increasing competition.
“We will leverage on the prevailing boom in the construction of houses, commercial buildings, educational facilities and other infrastructure to improve revenues and profitability in the ensuing year,” said Mr Makoni.
ZIMBABWE Stock Exchange (ZSE)
“Efforts to raise funds from existing assets to upgrade production facilities will be enhanced in the coming year. Relevant cautionary statements have been issued to the market.”
In a cautionary statement released recently, Willdale said negotiations for the disposal of certain immovable assets, whose outcome could have material impact on the business and the share price, are still in progress.
Mr Makoni said output and efficiencies were affected by intermittent power outages that prevailed throughout the financial year under review.
He said clay crushing capacity was enhanced during the year by investing in a new plant resulting in better product quality.
“Capacity utilisation averaged 75 percent despite electricity supply deficits. The board is exploring various options to enhance plant capacity in the short-term and intends to leverage on its existing assets to source appropriate funding,” said Mr Makoni.
“A programme is under implementation to ensure consistent brick supplies during the rainy season to satisfy growing demand.”
The Second Republic led by President Mnangagwa, has invested significantly in infrastructural development as a key enabler to economic transformation despite limited access to external lines of credit.
This is evidenced by developments in construction of clinics, schools, dams and roads, which has seen the construction sector booming, resulting in higher business activity downstream.
Meanwhile, Mr Makoni said the company directors have resolved to pay a dividend of US$150 000 that is 0,0084 United States cents per share with respect to the financial year ended September 30, 2023. —-chronicle
