BRICK manufacturer, Willdale Limited (Willdale) has pinned its hopes on its property investment strategy to boost cashflow amid the firm continuing to experience a loss-making position.
In its half year performance ended March 31, 2025, Willdale revealed it implemented several strategic initiatives to secure adequate funding and ensure operational readiness for the peak production period from June to December 2025.
However, the brick firm’s ability to meet this objective had greatly lessened as at the end of the half year Willdale had just 83 US cents for every dollar of short-term debt, leaving it undercapitalised.
This is because during the period, Willdale revenue fell by 48% to US$3,14 million from the prior comparative period leading to a loss of US$1,79 million.
“The business outlook remains highly positive. We expect our property investment strategy to begin yielding material returns in the next quarter, with land sales and stand development providing a substantial boost to cash flow,” Willdale said in a statement attached to its trading update for the quarter ended June 30, 2025.
“This will allow us to modernise production technology, enhance efficiency and expand market share.
“Zimbabwe’s sustained growth in housing and commercial infrastructure—driven by both government and private sector initiatives—presents compelling opportunities for revenue expansion in the short to medium term.
“By combining sustainable production capacity with the strategic reinvestment of real estate proceeds, the company is well positioned to capture these opportunities and deliver strong shareholder value.”
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Willdale said it was confident that government initiatives to formalise business operations would level the competitive playing field, creating a fair and predictable environment for all market participants.
“We are entering a transformative phase, in the next quarter with production, sales, and liquidity expected to strengthen significantly as volumes are increased to optimum levels.
“Key to unlocking this growth is the strategic injection of capital for both operational requirements and investment in a modern, high-efficiency production plant,” Willdale said.
“Our capital-raising programme is progressing well, anchored by real estate and land development initiatives. Notably, one of the identified land parcels was issued with a development permit in May 2025.
“The ongoing removal of illegal occupants will allow for the full servicing of this land, enabling the sale of high-demand residential and commercial stands.”
Willdale said in addition, its Smartsuburb investment in Mt Hampden — situated within the boundary of the new city — was scheduled to commence servicing and sales next month.
“These property projects are positioned to generate strong returns, with proceeds directed towards strengthening working capital and funding the acquisition of a new, all-weather common brick plant,” the brick manufacturer said.
During the quarter, the shortage of working capital derailed the achievement of production and sales targets.
“Year-to-date extrusion was 52% below prior year while fired production declined by 41% for the comparative period. Sales volumes dropped by 34% in line with the decrease in production,” Willdale said.
“Management is pursuing various options to raise working capital and ramp up production while the peak production season lasts.”
Low production led to a year-to-date revenue drop of 45% compared to the previous year.
“Average prices for the period rose 10% above the prior year, supported by our strategic focus on high-value product lines,” Willdale said.
“While the common brick segment continues to face competitive pressures, the company’s targeted approach in premium categories has cushioned performance and positions us for stronger returns going forward.”
The half year loss was narrower from the comparative loss of US$6,46 million in its half year period from last year.
The improvement was owing to the firm growing its other income and recording no fair value loss on its investment property.
