DT Correspondent
HARARE: – Willdale Bricks (Willdale) says it has commenced negotiations for the disposal of its idle assets.
Six years ago, the Zimbabwe Stock Exchange listed brick maker, disposed of part of its land for US$11 million, with the proceeds channelled towards servicing some of its debts and settling preference shares obligations.
In a statement this Wednesday, the company urged caution in the trading of its shares.
“The transaction, if successful, could have a material effect on the business and the share price.”
Despite a challenging environment, Willdale’s sales volumes for the quarter to June 30, 2023, increased by 26 percent over the comparative period as the construction industry picked up from the rain season shutdown period.
Year-to-date volumes for the nine months were however four percent below the prior year and still reeling from the effects of low production experienced earlier in the year due to electricity shortages.
A significant order book has been built to drive sales for the remainder of the year. In a trading update, the company said it continued to pursue various opportunities requiring bricks in various sectors.
Year-to-date revenue for the period grew by 83 percent to ZWL 20 billion in hyperinflation terms and by 704 percent to ZWL 10 billion in historical terms compared to the prior year.
Revenue continued to be impacted by exchange rate distortions.
The continued growth in demand for higher-margin brick types has helped to improve the product mix and margins.
The focus remains on efficient production and cost containment given the prevailing economic environment.
