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BDM
BDM
BDM - Buildmax - Trading Update and Withdrawal of Cautionary Announcement
Buildmax Limited
(Registration No. 1995/012209/06)
Share Code: BDM & ISIN Code: ZAE000011250
("Buildmax" or the "group")
TRADING UPDATE AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the trading statement and cautionary announcements
dated 10 July 2009, 25 August 2009 and 7 October 2009 whereby shareholders were
advised that Buildmax`s financial results for the six months ended 31 August
2009 ("the interim period") would be negatively impacted by the industrial
action at Diesel Power, a subsidiary of Buildmax`s mining services business
unit.
The industrial action undertaken by a significant portion of the workforce
severely disrupted the operations of Diesel Power culminating in strike activity
during the months of May and June. Lengthy lead times for replacement employees
due to induction programmes also significantly decreased July`s production.
Buildmax is pleased to report that the industrial action at Diesel Power is now
over, that no contracts were lost during this period and that Diesel Power`s
operations returned to full productivity from August 2009. However the
industrial action resulted in a loss in revenue approximating R95 million with
ongoing fixed costs and additional HR costs being incurred during the interim
period. In addition, margins of the mining services business unit were
negatively affected by the decision to curtail capital expenditure resulting in
increased repairs, maintenance and ongoing running costs (particularly hiring in
of sub-contractors and required plant items) which coupled with softer market
conditions materially impacted Buildmax`s results for the interim period.
The performance of the construction materials division remained weak during the
interim period with its repositioning to capitalise on infrastructure related
projects being unable to offset the continued slowdown in private sector
spending.
Buildmax is now in a position to provide the specific guidance in relation to
its financial results for the interim period required by the JSE Listing
Requirements for a trading statement.
Core headline earnings per share ("Core HEPS")
Core HEPS is based on headline earnings per share ("HEPS") excluding non-cash
flow items relating to amortisation of intangibles (including mining rights),
and the implied interest incurred on a deferred vendor consideration as required
in terms of International Financial Reporting Standards.
Shareholders are advised that Buildmax`s Core HEPS and HEPS for the interim
period are expected to be between 4.4 cents and 5.3 cents and 3.6 cents and 4.4
cents respectively, being between 64% and 56% and 67% and 60% lower than the
prior period.
Earnings per share are expected to be between 3.3 cents and 4.0 cents, being
between 72% and 66% lower than the prior period.
The prior period results have been restated due to the recognition and
amortisation of intangible assets identified during February 2009 when the
provisionally determined fair value of assets, liabilities and contingent
liabilities acquired as a result of the acquisitions of Diesel Power and the
Buildco group of companies were finalised.
The information on which this trading statement has been based has not been
reviewed or reported on by Buildmax`s auditors.
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Caution is no longer required to be exercised by Buildmax shareholders when
dealing in their securities.
15 October 2009
Sponsor
Java Capital (Proprietary) Limited
Date: 15/10/2009 17:00:12 Produced by the JSE SENS Department.
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