RADAR Holdings’ shareholders last week gave the nod for the firm’s exit from the Zimbabwe Stock Exchange.
According to an announcement by Radar concerning the EGM that was held last Thursday, the shareholders approved “that the directors of the company be and are hereby authorised to make a written applications to the ZSE for the deletion of the company’s shares from the ZSE”.
The effective date for the delisting of Radar’s shares has been set for April 30, 2016. The holding company’s operations currently include:
Radar Properties (Pvt) Ltd, Radar Investments (Pvt) Ltd and MacDonald Bricks.
The struggling firm’s delisting has been necessitated by prolonged underperformance, which has – in turn – constrained both its viability and ability to remain in compliance with the listing requirements of the exchange.
“Trading in the shares of the company has been limited and the absence of sufficient buyers and sellers of the shares has meant that the shares are relatively illiquid.
During the 2015 calendar year Radar traded a mere 79,483 shares valued at $2, 302, further reiterating the illiquidity of the shares.
“Finally, the size of the company and the illiquidity of shares do not allow it to fully take advantage of being listed on the ZSE. For these reasons, the board believes that it is in the best interests of the company and the shareholders as a whole if the approval of the delisting occurs as soon as possible,” said Radar in earlier abridged information memorandum to shareholders.
Meanwhile, the group reported revenue of $3 million for the half-year period to December 31, 2015, which declined 17 percent from the prior comparable period. Radar posted a loss of $251,762 for the period under review.
Management attributed the negative performance to “the worsening economic environment that resulted in low construction expenditure in both the private and public sectors,” said the company in a statement accompanying the results.
Gross profit margin for the half-year was down 18 percent from 21 percent in the prior year. Borrowings were marginally down from $6,3 million to $5,5 million, much of which remains short-term in nature, said the company. For the half-year just ended the board felt it “prudent not to recommend any interim dividend.” – BH24