| Fri 9 Nov 2007, 7:25 | | BIK - Brikor Limited - Reviewed financial results |
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BIK
BIK
BIK - Brikor Limited - Reviewed financial results for the six months
ended 31 August 2007
Brikor Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/013247/06)
(JSE code: BIK ISN: ZAE000101945)
("Brikor" or "the company")
Highlights
* Revenue up 16%
* Attributable earnings up over 100%
* Headline earnings up 85%
* Earnings per share up over 100%
* Headline earnings per share up 81%
* Net asset value per share up 42%
* Listing on ALTx on 7 August 2007
REVIEWED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 August 2007
Abridged income statements
Reviewed Unaudited Unaudited
6 months Pro forma Pro forma
31 August 6 months 12 months
2007 31 August 28 February
R`000 2006 2007 (2)
R`000 R`000
Revenue 176 107 151 713 305 531
Cost of sales (99 153) (103 251) (198 588)
Cost of sales depreciation (7 228) (5 500) (12 500)
Gross profit 69 726 42 962 94 443
Other income (3) 6 321 - 733
Administration expenses (17 075) (14 077) (29 703)
Depreciation (652) (502) (1 279)
Profit before interest and 58 320 28 383 64 194
taxation
Loss / (Profit) on disposal of (62) 50 (132)
non-current assets
Net interest received / (paid) 608 (2) (3 094)
Profit before taxation 58 866 28 431 60 968
Taxation (15 253) (8 245) (18 900)
Profit attributable to 43 613 20 186 42 068
ordinary shareholders
Earnings before interest, 66 200 34 385 77 973
taxation, depreciation and
amortisation ("EBITDA")
Reconciliation of headline
earnings:
Profit attributable to 43 613 20 186 42 068
ordinary shareholders
Adjusted for: 44 (36) 94
Loss / (Profit) on disposal of
property, plant and equipment
Grant received (6 321) - -
Headline earnings attributable 37 336 20 150 42 162
to ordinary shareholders
Weighted average shares in 502 136 489 000 000 489 000 000
issue on which earnings are 986
based (1)
Basic earnings per share 8.7 4.1 8.6
(cents)
Headline earnings per share 7.4 4.1 8.6
(cents)
Fully diluted weighted average 503 226 489 000 000 489 000 000
shares in issue 026
Fully diluted earnings per 8.7 4.1 8.6
share (cents)
Fully diluted headline 7.4 4.1 8.6
earnings per share (cents)
Notes:
1 The pro forma weighted average number of shares in issue for 31 August 2006
and 28 February 2007 are based on the sub-division and increase of the
ordinary shares in issue into 489 000 000 ordinary shares in issue on the
last practicable date as set out in the detailed prospectus dated
27 July 2007 ("the detailed prospectus").
2 The historical pro forma financial information for 28 February 2007 is an
extract from the unaudited pro forma financial information after the
consolidation column as set out in Annexure 5 of the detailed prospectus.
Brikor was restructured with effect from 28 February 2007 in terms of the
Restructure Agreements ("Restructure Agreements") as set out in the
detailed prospectus. In terms of the Restructure Agreements, Brikor
acquired the businesses conducted by Parkin Mine Enterprises (Pty) Limited
("PME") and Brikor Vitro (Pty) Limited ("Brikor Vitro") including immovable
properties and the immovable properties of Marievale Bamford (Pty) Limited
and the property situated at Portion 27 of the farm Varkensfontein 169.
3 Other income for the 6 months ended 31 August 2007 of R6.3 million relates
to a grant received from the Department of Trade and Industry.
Abridged balance sheets
Reviewed Unaudited
31 August Pro forma
2007 28
R`000 February
2007
R`000
ASSETS
Non-current assets 293 691 263 539
Property, plant and equipment 266 691 241 458
Goodwill 27 000 22 081
Current assets 285 378 52 852
Inventories 37 258 19 031
Loans receivable 5 764 -
Trade and other receivables 31 053 30 899
Cash and cash equivalents 211 303 2 922
Total assets 579 069 316 391
EQUITY AND LIABILITIES
Equity 397 590 216 015
Issued capital 64 49
Share premium 240 962 103 015
Accumulated profits 156 564 112 951
Non-current liabilities 56 282 39 288
Environmental obligations 5 782 5 547
Installment sale creditors 13 650 5 595
Deferred taxation 36 850 28 146
Current liabilities 125 197 61 088
Trade and other payables 24 792 22 420
Current portion of non-current 10 019 3 705
liabilities
Loans from shareholders (4) 80 223 -
Taxation 10 163 34 963
Total equity and liabilities 579 069 316 391
Number of shares in issue at 636 000 000 489 000
period end(1) (2) (3) 000
Net asset value per share 62.5 44.2
(cents)
Net tangible asset value per 58.3 39.7
share (cents)
Notes:
1 The pro forma weighted average number of shares in issue for
28 February 2007 is based on the restructuring and increase of the ordinary
shares in issue into 489 000 000 ordinary shares in issue on the last
practicable date as set out in the detailed prospectus.
2 In terms of the Restructure Agreements and the detailed prospectus,
47 619 324 ordinary Brikor shares will be issued to PME and Brikor Vitro
upon the registration of transfer of certain immovable properties into the
name of Brikor. These shares have been included in the number of shares
issued at period end.
3 The 15 900 000 ordinary shares issued to the Brikor Incentive Scheme have
been treated as "treasury" shares.
4 The loans from shareholders relate to the offer for sale by the selling
shareholders in terms of the private placement as set out in the detailed
prospectus and will be paid to the selling shareholders in due course.
Abridged statements of changes in equity
Reviewed Unaudited
6 months Pro forma
31 August 12 months
2007 28 February
R`000 2007
R`000
Balance at beginning of period 216 015 77 584
Net profit for the period 43 613 35 367
Issue of share capital 15 49
Share premium 137 947 103 015
Balance at end of period 397 590 216 015
Abridged cash flow statements
Reviewed
6 months Unaudited
31 August Pro forma
2007 12 months
R`000 28 February
2007
R`000
Cash flows from operating 14 613 51 443
activities
Cash flows from investing (33 022) (147 413)
activities
Cash flows from financing 226 790 100 371
activities
Net increase in cash and cash 208 381 44 401
equivalents
Cash and cash equivalents at 2 922 (1 479)
beginning of period
Cash and cash equivalents at end 211 303 2 922
of period
OVERVIEW
The directors of Brikor are pleased to present the interim financial
results for the six months ended 31 August 2007 ("the interim period").
Brikor has various clay brick, clay pipes, roof tiles and paver
manufacturing plants, in and around the Gauteng area. These
manufacturing plants are situated at Nigel, Olifantsfontein, Vereeniging
and Bronkhorstspruit with production capacities in excess of 270 million
clay bricks per annum, 18 million roof tiles per annum and 5 400 tons of
clay pipes per annum. The new roof tile and paver plants will be
commissioned at Olifantsfontein before the end of January 2008 and will
increase capacities of roof tiles to 40 million and pavers to 70 million
per annum.
The headline earnings of Brikor achieved during the interim period is
almost double compared to the previous interim period. The focus areas
during the interim period were cost management, efficiency gains and
yield improvements. This directly resulted in bricks being produced at
lower costs, which had a significant impact on the gross profit and
EBITDA margins achieved by Brikor.
Brikor listed on 7 August 2007 on ALTX. Brikor has strategically been
positioned to take advantage of the buoyant trading conditions
experienced in the South African construction industry.
FINANCIAL RESULTS
Revenue increased during the interim period by 16% to R176.1 million
(2006: R151.7 million).
Gross profit increased by 62% to R69.7 million (2006: R43.0 million) due
to improved productivity, better yields achieved and higher production
volumes with a significant reduction in waste. Overall gross profit
margins improved to 39.6% (2006: 28.3%). EBITDA increased to R66.2
million (2006: R34.4 million) and the EBITDA margin improved to 37.6%
(2006:22.7%) as a result of costs being effectively managed within
Brikor. Profit attributable to ordinary shareholders for the six months
interim period doubled to R43.6 million compared to 31 August 2006 and
exceeded the profit attributable to ordinary shareholders for the 12
months ended 28 February 2007.
Working capital was absorbed by significant investment in capital
projects and expansions to increase capacity at the manufacturing plants
during the interim period. Brikor`s strong balance sheet with
significant cash resources from the private placement and the low gearing
positions the company favourably for potential acquisition opportunities.
PROSPECTS
Although the second half of the financial reporting period is traditionally
slower than the first half, due to the builders` break during the festive season
the directors are confident that Brikor will achieve its profit forecast as set
out in the detailed prospectus.
In light of favourable market conditions and the current order book, the
directors remain confident that Brikor will continue to trade well.
It is expected that the commissioning of the second rooftile and paver plants
will take place before the end of January 2008.
SHARE CAPITAL
Prior to the date of listing on ALTX, an offer was made to the group`s employees
to acquire shares in the company through the Share Incentive Trust. The
15 900 000 shares have been treated as "treasury" shares in the share capital of
the company and deducted from equity.
DIVIDEND POLICY
It is the intention of the company to reconsider its dividend policy once the
group has achieved mature growth and periodically thereafter to take account of
prevailing circumstances and future cash requirements. Initially all earnings
generated by the group will be utilised to fund future growth and development.
BASIS OF PREPARATION
The interim results have been prepared in accordance with IAS 34 (Interim
Financial Reporting). The accounting policies used to prepare these interim
financial statements are consistent with those applied in the prior interim
period and at previous year-end and are in accordance with International
Financial Reporting Standards.
These consolidated interim financial statements incorporate the financial
statements of the company, its subsidiaries and special purpose entities that,
in substance, are controlled by the group. Results of subsidiaries are included
from the effective date of acquisition or up to the effective date of disposal.
All significant transactions and balances between group enterprises are
eliminated on consolidation.
This announcement has been prepared in accordance with the Listings Requirements
of the JSE Limited.
AUDITORS` REVIEW
The auditors, RSM Betty & Dickson (Tshwane), have reviewed
these interim results. A copy of their unqualified review
opinion is available for inspection at the company`s registered
office.
By order of the Board
8 November 2007
G v N Parkin H Botha
Chief Executive Officer Chief Financial Officer
CORPORATE INFORMATION
Non executive director: E G Dube (Chairperson)
Executive directors: G v N Parkin, H Botha, K E Mathebula, G Parkin (Jnr)
Registration number: 1998/013247/06
Registered address: 1 Marievale Road, Vorsterskroon, Nigel
Postal address: PO Box 884, Nigel, 1490
Company secretary: Hanleu Botha
Telephone: (011) 739 9000
Facsimile: (011) 739 9021
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited
Designated Adviser: Exchange Sponsors (Pty) Limited
Date: 09/11/2007 07:25:36 Produced by the JSE SENS Department.
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