Willdale Limited posted improved revenue for the year to September 30, 2020, but profitability was reduced on asset depreciation during the period under review.
Total revenue for the year jumped 19 percent to $596 million, compared to the prior year (from $499 million over the same period last year), which management attributed to a 12 percent increase in volumes.
But operating profit decreased by 50 percent to $166 million (from $331 million in 2019) “after charging $8.7 million to depreciation of property, plant and equipment” (2019: $22 million).
The group reported that exchange gains amounting to $26 million (2019: $34 million) were earned from translation of foreign currency denominated balances.
Net cash flows generated from operations amounted to $125 million (2019:$72 million).
Capital expenditure for the year, which was all financed from internal resources, totaled $35 million (2019: $30 million), said the group.
“Land and buildings were revalued to reflect fair values in line with our policy,” said management.
In respect of production, Willdale said fired production for the year declined by 20 percent compared to the prior year.
“About 2 months’ production was lost due to the Covid-19 induced lockdown,” reported management.
“Annual maintenance of the plant will be carried out during the seasonal shutdown to ensure efficient production that delivers sufficient bricks for projects during the ensuing year in line with approved budgets for the new financial year.”
The group’s sales volumes increased by 12 percent compared to the prior year, despite effects of the Covid-19 induced lockdown on projects.
Business however ticked up in the last quarter of 2020.
“The relaxation of lockdown conditions from Q4 witnessed a steady increase in orders especially from individual home developers,” said Willdale.
“The continued opening up of economic activity coupled with the RBZ introduced foreign currency auction system resulted in a stable currency and inflation rate.
“This will present opportunities from dormant and new projects including government infrastructure and housing development programs.”
The board has declared a dividend for the year under review of 1.35 cents per share.