Willdale leverages existing assets to raise capital

Willdale Limited, a brickmaker, says it is looking into a number of short-term possibilities to increase plant capacity and is using its current assets to secure the necessary funds. According to a recent statement from the business, negotiations are still ongoing to sell some idle assets and raise money for capital projects. Group chairman Mr. Cleopas Makoni stated in a financial statement for the year ending September 30, 2023 that more will be done in the coming year to earn money from current assets to update production facilities. The corporation sold a portion of its land for U$11 million in 2017, using the funds to pay off debt and fulfill preference share commitments. Speaking about operations, Mr. Makoni stated that intermittent power outages that persisted throughout the fiscal year had an impact on throughput and efficiencies during the period under consideration. Brick demand was reasonably high during the year under review, spurred by the construction of shopping centers, educational institutions, and new home developments. But by purchasing a new plant, the crushing capacity of clay was increased during the year, leading to higher-quality product output. In parallel, capacity utilization averaged 75%, mostly due to demand from building projects and other housing developments. However, volumes were 5% lower than the previous year, mostly as a result of supply-side issues brought on by power outages, according to Mr. Makoni. To meet the rising demand, a scheme is being implemented, nevertheless, to guarantee steady brick deliveries during the wet season, according to Mr. Makoni. He mentioned that margins were still rising as a result of the move toward higher-margin brick varieties, and the brand was still leading the industry in spite of growing competition. Moving ahead, the business observed that the fundamentals of the economy have been strong, providing a solid basis for improved operational conditions in the coming year. The company stated, "We will use the current boom in residential and commercial building construction, as well as the construction of other infrastructure, to increase revenues and profitability in the coming year." In terms of financial success, the year's inflation-adjusted revenue came to $37 billion, which was 106% more than the previous year's $18 billion. Exchange losses, which accounted for 21% of revenue, demonstrated the extent to which fluctuations in exchange rates affected foreign currency-denominated balances. Nevertheless, exchange rate distortions persisted in their impact on the revenue figure. "A favorable product mix, however, maintained margins by maintaining average prices at reasonable levels," Mr. Makoni stated.