8/12/2019 RADR Unaudited Results for HY Ended 31 Aug 13

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TO BE THE BEST

RADAR

Directors: Z Kumwenda (Chairman), E Hwenga (CEO), HBAJ von Pezold, BD Mtetwa, KRR Schofield, H Mapara

Unaudited Results For The Half YearEnded 31 December 2013

GROUP STATEMENT OF CHANGES IN EQUITY

Share Share Other Retained Total Non Totalreserves capital reserves earnings shareholders controlling equity equity interest

USD USD USD USD USD USD

Balance as at 30 June 2012 510 859 59 629 643 4 626 156 64 766 658 52 101 563 116 868 221

Comprehensive loss:Loss for the year - - (49 898 210) (49 898 210) 656 907 (49 241 303)

Other comprehensive income:Surplus on revaluation of property,plant and equipment - 3 705 711 - 3 705 711 - 3 705 711Fair value gain on available-for-salefinancial assets - 50 716 - 50 716 - 50 716

Transactions with owners:Transfer to retained earnings on disposalof subsdiary - (46 906 490) 46 906 490 - (52 758 470) (52 758 470)Dividend distributed - - (6 601 526) (6 601 526) - (6 601 526)Deferred tax release - 733,692 - 733 692 - 733 692

Transfer of non distributable reserves - (6 313 418) 6 313 418 - - -

Balance at 30 June 2013 510 859 10 899 854 1 346 328 12 757 041 - 12 757 041

Comprehensive income:Profit for the period - - 299 166 299 166 - 299 166

Balance as at 31 December 2013 510 859 10 899 854 1 645 494 13 056 207 - 13 056 207

Registered Office: 6th Floor Tanganyika House, 23 Third Street, Harare, Telephone (04) 250592, 798148, Fascimile 739916Transfer Secretaries: Corpserve Share Transfer Secretaries, P. O. Box 2208, Harare, Zimbabwe, Telephone (04) 751559/61

GROUP STATEMENT OF CASH FLOWS 6 months 6 months 12 months 31-Dec -13 31-Dec-12 30-Jun-13 USD USD USD

Cash flows from operating activitiesOperating profit for the year including discontinued operation 759 494 2 863 342 3 834 298

Adjusted for:Depreciation 351 579 1 435 352 2 792 826Fair value gain on biological assets - - (8 592 455)Fair value loss on investment property - - 600 000Impairment loss - - 1 266 145

Plantation redemption - - 177 776Loss on disposal of property, plant and equipment - 5 390 3,719

Changes in working capital:Inventory (292 784) (1 385 605) 2 787 545

Trade and other receivables (411 813) 339 329 2 147 504Trade and other payables 66 838 (138 013) 707 444Cash generated from operating activities 473 314 3 119 795 5 724 802

Taxation paid (13 046) (20) (36,923)

Net cash generated from operating activities 460 268 3 119 775 5 687 879

Cash flows from investing activitiesPurchase of property, plant and equipment (290 783) (495 580) (1 266 873)Expenditure on biological assets - (1 827 895) (3 141 994)Proceeds on disposal of property, plant and equipment - 191 075 228 720Proceeds on disposal of discontinued operations net of cash - - 2 654 176

Net cash utilised in investing activities (290 783) (2 132 400) (1 525 971)

Cash flows from financing activitiesProceeds from borrowings 1 711 849 1 544 624 1 546 971Repayments of borrowings (333 165) (2 698 669) (2 285 498)Interest paid (460 329) (1 847 221) (3 408 340)

Net cash generated from /(used in) financing activities 918 355 (3 001 266) (4 146 867)

Net increase/(decrea se) in cash and cash equivalents 1 087 840 (2 013 891) 15 041

Cash and cash equivalents at beginning of the period (3 096 993) (3 112 034) (3 112 034)

Cash and cash equivalents at end of the period (2 009 153) (5 125 925) (3 096 993)

GROUP STATEMENT OF FINANCIAL POSITIONAt At At At3 31-Dec-13 31-Dec-12 30-June-13ASSETS USD USD USD

Non current assetProperty plant and equipment 15 301 851 58 718 870 15 306 736Biological assets - 99 732 147 -Investment property 3 200 000 3 800 000 3 200 000Available -for- sale investments 101 146 47 761 101 146

Trade and other receivables 119 403 1 000 000 137 315Total non current assets 18 722 400 163 298 778 18 745 197

Current assetsInventories 2 170 541 7 148 097 1 877 757

Trade and other receivables 1 112 553 5 683 132 682 827Cash and cash equivalents 129 869 321 219 232 803Total current assets 3 412 963 13 152 448 2 793 387

TOTAL ASSETS 22 135 363 176 451 226 21 538 584

EQUITY AND LIABILITIESShare capital 510 859 510 859 510 859Non - distributable reserves 10 899 854 59 629 643 10 899 854Retained earnings 1 645 494 4 829 871 1 346 328 13 056 207 64 970 373 12 757 041Non controlling interest - 52 127 574 -

Total Equity 13 056 207 117 097 947 12 757 041

Non current liabilitiesBorrowings 866 667 1 405 370 -Deferred tax liability 1 749 863 34 457 235 1 749 863Total non current liabili ties 2 616 530 35 862 605 1 749 863

Current liabilitiesTrade and other payables 557 253 5 172 840 490 417Borrowings 5 905 373 18 317 834 6 541 263Total current liabilit ies 6 462 626 23 490 674 7 031 680

Total liabiliti es 9 079 156 59 353 279 8 781 543

TOTAL EQUITY AND LIABILITIES 22 135 363 176 451 226 21 538 584

GROUP STATEMENT OF COMPREHENSIVE INCOME 6 months 6 months 12 monthsec -12 31-Dec-13 31-Dec-12 30-June-13Continuing operationsec -12 USD USD USD

Revenue 4 460 871 4 631 208 9 229 511Cost of sales (3 091 212) (3 257 959) (6 409 460)Gross profit 1 369 659 1 373 249 2 820 051

Other operating income 36 458 17 747 74 613

Fairvalue loss on investment property - - (600 000)Administration and selling expenses (646 623) (711 877) (3 353 610)Operating profit/(loss) 759 494 679 119 (1 058 946)

Finance costs (460 559) (593 358) (935 775)Finance Income 231 90 684 -Profit/(loss) before taxation 299 166 176 445 (1 994 721)

Income tax expense - (20) (295 224)

Profit/ (loss) for the period from continuing operations 299 166 176 425 (2 289 945)

Discontinued OperationsProfit/ (loss) for the period from discontinued operations - 53 301 (46 951 358)

Profit/(loss) for the period 299 166 229 726 (49 241 303)

Profit /(loss) for the period attributable to:Equity holders of parent company 299 166 203 715 (49 898 210)Non Controlling interest - 26,011 656 907

299 166 229 726 (49 241 303)

Profit /(loss) for the period 299 166 229 726 (49 241 303)Other comprehensive income/(loss)Items that will not be reclassified to profit or loss:Revaluation of property, plant and equipment - - 3 906 320Income tax effect - - (200 609) - - 3 705 711

Items that may be reclassified subsquently to profit or loss:Net fair value loss on available for sale financial assets - - 53 385Income tax effect - - (2 669) - - 50 716

Total other comprehensive loss for the period, net of tax - - 3 756 427

Total comprehensive income/(loss) for the period, net of tax 299 166 229 726 (45 484 876)

Attributable to:Equity Holders of Parent Company 299 166 203 715 (46 141 783)Non Controlling interest - 26 011 656 907

299 166 229 726 (45 484 876)

Total comprehensive income attributable to equity shareholders arises from:Continuing operations 299 166 176 426 1 466 482Discontinued operation - 27 289 (47 608 265)Profit/(loss) for the period 299 166 203 715 (46 141 783)

Key StatisticsShares in issue 51 085 875 51 085 875 51 085 875Earnings / (loss) per share (cents)- Basic and diluted from continuing operations per share (cents) 0.59 0.35 (4.48)- Basic and diluted from discontinued operations per share (cents) - 0.05 (93.2)- Earnings per share for the period (cents) 0.59 0.40 (97.68)- Headline earnings per share for the period (cents) 0.59 0.40 (2.18)

6 months 6 months 12 months12 31-Dec-13 31-Dec-12 30-June-13USD USD USD USD

Related party transactions -12(i) Transactions - Sales of goods and services 79 857 173 950 291 627

- Purchases of goods and services 130,572 102 461 203 144

- Professional services income - - 490 053

(ii) Balances as at: - Receivable from related parties 114 139 118 019 95 155

- Payable to related parties 237 313 801 26 541

(i) Key management remuneration - Salaries and other short term benefits 197 118 180,629 342 592

Property, plant and equipment- Capital expenditure 290 783 2 323 475 495 035

- Depreciation charge 351 579 1 435 352 2 792 826

- Capital commitments: The group had no capital commitments authorised by the directors or contracted for at the reporting date - - -

Segment Information - 31-Dec-13 31-Dec-13 31-Dec-13 6monthsManufacturing Services Eliminatio ns 31-Dec-13

TotalUSD USD USD USD

Revenue 4 411 987 64 407 (15 523) 4 460 871Profit before interest and tax 274 278 485 216 - 759 494Net interest expense (36 974) (423 354) - (460 328)Net profit for the period 237 304 61 862 - 299 166

Total assets 8 438 817 14 907 374 (1 210 828) 22 135 363

Total liabili ties 2 327 856 7 962 128 (1 210 828) 9 079 156

s31-Dec-12 31-Dec-12 31-Dec-12 31-Dec-12 6months Manufacturing Services Eliminatio ns 31-Dec-12

TotalUSD USD USD USD

Revenue 4 579 960 67 887 (16 639) 4 631 208

Profit before interest and tax 791 475 (112 356) - 679 119Net interest expense (592 677) 90 003 - (502 674)Income tax expense - (20) - (20)Net profit /(loss) for the period 198 798 (22 373) - (176 425)

Total assets 134 684 995 28 444 455 13 321 776 176 451 226

Total liabilit ies 35 302 192 15 792 319 8 258 768 59 353 279

There were no events after the interim reporting date that would have any effect on these interim financial results.

COMMENTARY

BackgroundFollowing the demerger of Border Timbers Limited on 31st May 2013 the Group continuin g operations now comprise of MacdonaldBricks, Radar Properties (Private) Limited and Radar Investments(Private) Limited. This has led to changes in the presentation ofthe 31 December 2012 financial results and the numbers have been changed to account for this demerger and BTLs tradingresults are included in the statement of comprehensive income as a discontinued operation.

Group ReviewProfit margin improved to 7% as compared to 5% achieved during the same period last year. At $4,5 million, turnover is 4% behindprior year but management expects a recovery in the second half considering the current state of the order book. The declinein turnover is attributable to reduced construction activity in the country and the incessant rains. Rental income on investmentproperty remained at last years levels. Operating profit before finance charges increased by 12% compared to the same periodlast year.

Overheads costs were 10% lower than last year following a successful restructuring of the Group and cost containment measuresimplemented at divisional level. Finance charges for the period under review stood at $460 559 compared to $502 674 in the priorperiod. The high interest rates prevailing in the market are unsustainable and management is working on restructuring debt.

During the half year, the company acquired mining equipment worth $290 783 as part of the continuing replacement programwhich will go a long way in reducing repairs and maintenance. Production costs remained high driven by the high cost of electricityand labour. Management continues to aggressively work on cost cutting initiatives.

The second half will realise an improvement in repairs and maintenance co sts following the recent replacement of some of th eold mining equipment plant.

Production volumes remained reasonably flat compared to the same period last year while recoveries of high value industrial andface bricks at both plants continued to improve.

Both plants continued to experience power outages with Montgomery plant being affected by load shedding while Willsgrooveexperienced faults on the dedicated power line. During the period under review, power outages resulted in a combined productionloss of 3,2 million bricks for the two plants.As reported previously, the company is looking at various ways of unlocking value from the existing land bank. Approvals byvarious authorities are at different stages and steady progress h as been made.

DividendThe directors have not recommended a divend for the interim period ended 31 December 2013.OutlookDemand for bricks is expected to improve in the final half of the year and stocks are available to cater for increased demand oncommon and industrial bricks. Efforts will be directed at increasing production of face bricks to meet the anticipated increaseddemand. Going forward, management believes that the core business of manufacturing bricks will improve once liquidity issuesare sorted. The housing backlog across the economy also points to increased construction activities. The land bank will add to thisonce the potential is unlocked. We remain focused on our key strategic pillars to grow sales and deliver value through cost savinginitiatives.

By order of the BoardRadar Investments (Private) LimitedSecretariesHARARE20 March 2014

NOTES TO THE INTERIM FINANCIAL RESU LTSFor the six months ended 31 December 2013-

1 Accounting policies

The principal accounting policies of the Group have been followed in all material respects and conform to International Financial ReportingStandards (IFRS) and the Zimbabwe Companies Act (Chapter 24:03). The same accounting policies and methods of computation are followed

in the interim financial results as compared with the most recent annual financial statements for the year ended 30 June 2013.

2 The financial results are presented in United States Dollars which is the functional and presentation currency of the Group.