RADAR

TO BE THE BEST
ec -12 Continuing operationsec -12

Unaudited Results For The Half Year Ended 31 December 2013

Directors: Z Kumwenda (Chairman), E Hwenga (CEO), HBAJ von Pezold, BD Mtetwa, KRR Schofield, H Mapara
GROUP STATEMENT OF CHANGES IN EQUITY

Total equity USD 116 868 221 (49 241 303) 31-Dec-13 31-Dec-12 30-June-13 USD USD USD 4 631 208 (3 257 959) 1 373 249 17 747 - (711 877) 679 119 (593 358) 90 684 176 445 (20) 176 425 53 301 229 726 203 715 26,011 229 726 229 726 - - - - - - - 229 726 203 715 26 011 229 726 176 426 27 289 203 715 51 085 875 0.35 0.05 0.40 0.40 9 229 511 (6 409 460) 2 820 051 74 613 (600 000) (3 353 610) (1 058 946) (935 775) (1 994 721) (295 224) (2 289 945) (46 951 358) (49 241 303) (49 898 210) 656 907 (49 241 303) (49 241 303) 3 906 320 (200 609) 3 705 711 53 385 (2 669) 50 716 3 756 427 (45 484 876) (46 141 783) 656 907 (45 484 876) 1 466 482 (47 608 265) (46 141 783) 51 085 875 (4.48) (93.2) (97.68) (2.18) Share Share Other Retained Total Non reserves capital reserves earnings shareholders controlling equity interest USD USD USD USD USD Balance as at 30 June 2012 510 859 59 629 643 4 626 156 64 766 658 52 101 563 Comprehensive loss: Loss for the year Other comprehensive income: Surplus on revaluation of property, plant and equipment Fair value gain on available-for-sale financial assets Transactions with owners: Transfer to retained earnings on disposal of subsdiary Dividend distributed Deferred tax release Transfer of non distributable reserves Balance at 30 June 2013 Comprehensive income: Profit for the period Balance as at 31 December 2013 - - (49 898 210) (49 898 210) 656 907

GROUP STATEMENT OF COMPREHENSIVE INCOME 6 months 6 months 12 months

Revenue 4 460 871 Cost of sales (3 091 212) Gross profit 1 369 659 Other operating income Fairvalue loss on investment property Administration and selling expenses Operating profit/(loss) 36 458 - (646 623) 759 494

Finance costs (460 559) Finance Income 231 Profit/(loss) before taxation 299 166 Income tax expense Profit/ (loss) for the period from continuing operations Discontinued Operations Profit/ (loss) for the period from discontinued operations Profit/(loss) for the period - 299 166 - 299 166

- -

3 705 711 50 716

- -

3 705 711 50 716

- -

3 705 711 50 716

(46 906 490) - 733,692

(6 313 418)

46 906 490 - (6 601 526) (6 601 526) - 733 692

6 313 418

(52 758 470) (52 758 470) - (6 601 526) - 733 692

Profit /(loss) for the period attributable to: Equity holders of parent company 299 166 Non Controlling interest - 299 166 Profit /(loss) for the period Other comprehensive income/(loss) Items that will not be reclassified to profit or loss: Revaluation of property, plant and equipment Income tax effect Items that may be reclassified subsquently to profit or loss: Net fair value loss on available for sale financial assets Income tax effect Total other comprehensive loss for the period, net of tax Total comprehensive income/(loss) for the period, net of tax Attributable to: Equity Holders of Parent Company Non Controlling interest Total comprehensive income attributable to equity shareholders arises from: Continuing operations Discontinued operation Profit/(loss) for the period Key Statistics Shares in issue Earnings / (loss) per share (cents) - Basic and diluted from continuing operations per share (cents) - Basic and diluted from discontinued operations per share (cents) - Earnings per share for the period (cents) - Headline earnings per share for the period (cents) At 3 ASSETS 299 166 - - - - - - - 299 166 299 166 - 299 166 299 166 - 299 166 51 085 875 0.59 - 0.59 0.59

510 859
- 510 859

10 899 854
- 10 899 854

1 346 328 12 757 041

299 166 1 645 494 299 166 13 056 207

- 12 757 041
- - 299 166 13 056 207

NOTES TO THE INTERIM FINANCIAL RESULTS

For the six months ended 31 December 2013 1 Accounting policies The principal accounting policies of the Group have been followed in all material respects and conform to International Financial Reporting  Standards (IFRS) and the Zimbabwe Companies Act (Chapter 24:03). The same accounting policies and methods of computation are followed in the interim financial results as compared with the most recent annual financial statements for the year ended 30 June 2013. The financial results are presented in United States Dollars which is the functional and presentation currency of the Group.

2 

12 USD Related party transactions -12 (i) Transactions - Sales of goods and services - Purchases of goods and services - Professional services income

6 months 6 months 12 months 31-Dec-13 31-Dec-12 30-June-13 USD USD USD

79 857 130,572 - 114 139 237 197 118 290 783 351 579 -

173 950 102 461 - 118 019 313 801 180,629 2 323 475 1 435 352 -

291 627 203 144 490 053 95 155 26 541 342 592 495 035 2 792 826 -

(ii) Balances as at: - Receivable from related parties - Payable to related parties

(i) Key management remuneration - Salaries and other short term benefits Property, plant and equipment - Capital expenditure

GROUP STATEMENT OF FINANCIAL POSITION - Depreciation charge

At At At 31-Dec-13 31-Dec-12 30-June-13 USD USD USD 58 718 870 99 732 147 3 800 000 47 761 1 000 000 163 298 778 - Capital commitments: The group had no capital commitments authorised by the directors or contracted for at the reporting date Segment Information -

Non current asset Property plant and equipment Biological assets Investment property Available -for- sale investments Trade and other receivables Total non current assets Current assets Inventories Trade and other receivables Cash and cash equivalents Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Share capital Non - distributable reserves Retained earnings Non controlling interest Total Equity Non current liabilities Borrowings Deferred tax liability Total non current liabilities Current liabilities Trade and other payables Borrowings Total current liabilities Total liabilities

15 301 851 - 3 200 000 101 146 119 403 18 722 400

15 306 736 3 200 000 101 146 137 315 18 745 197

2 170 541 1 112 553 129 869 3 412 963 22 135 363 510 859 10 899 854 1 645 494 13 056 207 - 13 056 207 866 667 1 749 863 2 616 530 557 253 5 905 373 6 462 626 9 079 156

7 148 097 5 683 132 321 219 13 152 448 176 451 226 510 859 59 629 643 4 829 871 64 970 373 52 127 574 117 097 947 1 405 370 34 457 235 35 862 605 5 172 840 18 317 834 23 490 674 59 353 279

1 877 757 682 827 232 803 2 793 387 21 538 584 510 859 10 899 854 1 346 328 12 757 041 12 757 041 1 749 863 1 749 863 490 417 6 541 263 7 031 680 8 781 543

31-Dec-13 31-Dec-13 31-Dec-13 6months Manufacturing Services Eliminations 31-Dec-13 Total USD USD USD USD Revenue 4 411 987 64 407 (15 523) 4 460 871 Profit before interest and tax 274 278 485 216 - 759 494 Net interest expense (36 974) (423 354) - (460 328) Net profit for the period 237 304 61 862 - 299 166

Total assets Total liabilities

8 438 817 2 327 856

14 907 374 7 962 128

(1 210 828) (1 210 828)

22 135 363 9 079 156

s 31-Dec-12 31-Dec-12 31-Dec-12 31-Dec-12 6months Manufacturing Services Eliminations 31-Dec-12 Total USD USD USD USD Revenue 4 579 960 67 887 (16 639) Profit before interest and tax 791 475 (112 356) - Net interest expense (592 677) 90 003 - Income tax expense - (20) - Net profit /(loss) for the period 198 798 (22 373) - Total assets 134 684 995 28 444 455 13 321 776 Total liabilities 35 302 192 15 792 319 8 258 768 There were no events after the interim reporting date that would have any effect on these interim financial results. 4 631 208 679 119 (502 674) (20) (176 425) 176 451 226 59 353 279

COMMENTARY

Background Following the demerger of Border Timbers Limited on 31st May 2013 the Group continuing operations now comprise of Macdonald Bricks, Radar Properties (Private) Limited and Radar Investments(Private) Limited. This has led to changes in the presentation of the 31 December 2012 financial results and the numbers have been changed to account for this demerger and BTLs trading results are included in the statement of comprehensive income as a discontinued operation. GROUP STATEMENT OF CASH FLOWS 6 months 6 months 12 months
TOTAL EQUITY AND LIABILITIES 22 135 363 176 451 226 21 538 584 31-Dec -13 31-Dec-12 30-Jun-13 USD USD USD 759 494 351 579 - - - - - (292 784) (411 813) 66 838 473 314 (13 046) 460 268 (290 783) - - - (290 783) 1 711 849 (333 165) (460 329) 918 355 1 087 840 (3 096 993) (2 009 153) 2 863 342 1 435 352 - - - - 5 390 (1 385 605) 339 329 (138 013) 3 119 795 (20) 3 119 775 (495 580) (1 827 895) 191 075 - (2 132 400) 1 544 624 (2 698 669) (1 847 221) (3 001 266) (2 013 891) (3 112 034) (5 125 925)

Cash flows from operating activities Operating profit for the year including discontinued operation Adjusted for: Depreciation Fair value gain on biological assets Fair value loss on investment property Impairment loss Plantation redemption Loss on disposal of property, plant and equipment Changes in working capital: Inventory Trade and other receivables Trade and other payables Cash generated from operating activities Taxation paid Net cash generated from operating activities Cash flows from investing activities Purchase of property, plant and equipment Expenditure on biological assets Proceeds on disposal of property, plant and equipment Proceeds on disposal of discontinued operations net of cash Net cash utilised in investing activities Cash flows from financing activities Proceeds from borrowings Repayments of borrowings Interest paid Net cash generated from /(used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period

3 834 298 2 792 826 (8 592 455) 600 000 1 266 145 177 776 3,719 2 787 545 2 147 504 707 444 5 724 802 (36,923) 5 687 879 (1 266 873) (3 141 994) 228 720 2 654 176 (1 525 971) 1 546 971 (2 285 498) (3 408 340) (4 146 867) 15 041 (3 112 034) (3 096 993)

Group Review Profit margin improved to 7% as compared to 5% achieved during the same period last year. At $4,5 million, turnover is 4% behind prior year but management expects a recovery in the second half considering the current state of the order book. The decline in turnover is attributable to reduced construction activity in the country and the incessant rains. Rental income on investment property remained at last years levels. Operating profit before finance charges increased by 12% compared to the same period last year. Overheads costs were 10% lower than last year following a successful restructuring of the Group and cost containment measures implemented at divisional level. Finance charges for the period under review stood at $460 559 compared to $502 674 in the prior period. The high interest rates prevailing in the market are unsustainable and management is working on restructuring debt. During the half year, the company acquired mining equipment worth $290 783 as part of the continuing replacement program which will go a long way in reducing repairs and maintenance. Production costs remained high driven by the high cost of electricity and labour. Management continues to aggressively work on cost cutting initiatives. The second half will realise an improvement in repairs and maintenance costs following the recent replacement of some of the old mining equipment plant. Production volumes remained reasonably flat compared to the same period last year while recoveries of high value industrial and face bricks at both plants continued to improve. Both plants continued to experience power outages with Montgomery plant being affected by load shedding while Willsgroove experienced faults on the dedicated power line. During the period under review, power outages resulted in a combined production loss of 3,2 million bricks for the two plants. As reported previously, the company is looking at various ways of unlocking value from the existing land bank. Approvals by various authorities are at different stages and steady progress has been made. Dividend The directors have not recommended a divend for the interim period ended 31 December 2013. Outlook Demand for bricks is expected to improve in the final half of the year and stocks are available to cater for increased demand on common and industrial bricks. Efforts will be directed at increasing production of face bricks to meet the anticipated increased demand. Going forward, management believes that the core business of manufacturing bricks will improve once liquidity issues are sorted. The housing backlog across the economy also points to increased construction activities. The land bank will add to this once the potential is unlocked. We remain focused on our key strategic pillars to grow sales and deliver value through cost saving initiatives. By order of the Board Radar Investments (Private) Limited Secretaries HARARE
20 March 2014

Registered Office: 6th Floor Tanganyika House, 23 Third Street, Harare, Telephone (04) 250592, 798148, Fascimile 739916 Transfer Secretaries: Corpserve Share Transfer Secretaries, P. O. Box 2208, Harare, Zimbabwe, Telephone (04) 751559/61