Radar FY15 results update

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Radar reported a decline in both revenue and profitability for the year ended 30 June 2015. Revenue for the period was down 16.63% to $6.8 million due to an 11% reduction in sales volumes at Macdonald Bricks. Average selling prices realised also softened resulting in lower margins. The drop in revenue coupled with impairments totalling $179,302, resulted in a decline in operating profit to $124,302, down 90.1% from $1.3 million prior year.

Borrowings costs

The Group has high finance costs having paid $971,324 in the period under review, down from $1.0 million paid prior year comparative. The Group has borrowings of $5.9 million, the bulk of which remains short term in nature, down from $6.5 million. The average cost of debt is currently at 13.7% which we believe is unsustainable going forward, considering the weak current ratio of 0.44. Prospects for future earnings growth are also not that encouraging which is not a good sign.

Positive cash generation

The Group improved its cash generating capacity with a total $1.8 million having been generated from operations, up from $1.3 million prior year. The generated cash was enough to repay borrowings amounting to $841,137 and also interest payment of $958,563, remaining with net cash of $344,957 for the year.

Going forward the prevailing economic environment is expected to persist, characterised by tight liquidity and subdued aggregate demand in the construction sector. As a result prospects for future earnings growth are not encouraging.

Activity
Value
USD 0.00
Foreign buys
USD 0.00
Foreign sales
USD 0.00
Volume
0
Market Cap
USD(m)1.27
Performance
Bid
0.00
Ask
0.00
Sales
2.48
YTD
-29.14%
YOY
-0.80%
Market Info
Currency
US cents
Founded
1983
Listed
1983
YOY high
3.50
YOY low
2.00
Fundamentals
Year End
June
P/E
4.42
EPS
0.56
P/B ratio
0.09
Shares Issued
51,085,875

Radar Holdings Limited info table is from Sep 23rd, 2015 | All prices are in US cents unless otherwise stated.

 

By |September 24th, 2015|Categories: Investor Alert|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.