| Fri 19 Nov 2010, 12:44 | | BDM - Buildmax Limited - Reviewed consolidated interim results for the six |
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BDM
BDM
BDM - Buildmax Limited - Reviewed consolidated interim results for the six
months ended 31 August 2010
Buildmax Limited
("Buildmax" or "the group")
(Registration no. 1995/012209/06)
Share Code BDM ISIN code ZAE000011250
REVIEWED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2010
Abridged consolidated statement of comprehensive income
Reviewed Unaudited Audited
6 months 6 months year ended
ended ended 28 February
31 August 31 August 2010
2010 2009 R`000
R`000 R`000
CONTINUING OPERATIONS
Revenue 659 754 632 678 1 240 906
Operating profit before depreciation 45 822 143 432 215 063
and amortisation ("EBITDA")
Depreciation (85 980) (63 915) (131 320)
Operating (loss)/profit before (40 158) 79 517 83 743
amortisation
Amortisation of intangible assets (8 344) (10 879) (21 758)
(Loss)/profit before loss on disposal (48 502) 68 638 61 985
of business unit, impairments, interest
and taxation
Loss on disposal of business - (2 225) (2 467)
Impairment losses (272 422) - (805 613)
(Loss)/profit before interest and (320 924) 66 413 (746 095)
taxation ("PBIT")
Interest received 813 6 798 10 449
Interest paid (14 240) (37 245) (75 306)
(Loss)/profit before taxation ("PBT") (334 351) 35 966 (810 952)
Taxation 37 071 (10 969) 62 803
(Loss)/profit for the period from (297 280) 24 997 (748 149)
continuing operations
DISCONTINUED OPERATIONS
Revenue 69 669 324 640 564 678
Operating profit before depreciation 15 678 43 451 12 477
and amortisation ("EBITDA")
Depreciation (25 207) (21 048) (44 770)
(Loss)/profit before impairment losses, (9 529) 22 403 (32 293)
interest and taxation
Impairment losses (21 313) - (263 553)
(Loss)/profit before interest and (30 842) 22 403 (295 846)
taxation ("PBIT")
Interest received 1 572 2 906 4 981
Interest paid (9 166) (13 815) (26 550)
(Loss)/profit before taxation ("PBT") (38 436) 11 494 (317 415)
Taxation - (3 218) 54 715
(Loss)/profit for the period from (38 436) 8 276 (262 700)
discontinued operations
Total (loss)/profit for the period (335 716) 33 273 (1 010 849)
Other comprehensive income/(loss)
for the period
Unrealised profit due to change in 576 40 1 711
fair value of cash flow hedge
Taxation (161) (11) (479)
Total comprehensive (loss)/profit for (335 301) 33 302 (1 009 617)
the period
(Loss)/profit for the period
attributable to:
Equity holders of Buildmax (328 566) 33 413 (1 007 245)
Outside shareholders` interests (7 150) (140) (3 604)
(335 716) 33 273 (1 010 849)
Total comprehensive (loss)/profit for
the year attributable to:
Equity holders of Buildmax (328 151) 33 442 (1 006 013)
Outside shareholders` interests (7 150) (140) (3 604)
(335 301) 33 302 (1 009 617)
Abridged consolidated statement of financial position
Reviewed Unaudited Audited
31 August 31 August 28 February
2010 2009 2010
R`000 R`000 R`000
ASSETS
Non-current assets
Property, plant and equipment 708 764 1 368 545 901 997
Goodwill 27 111 810 578 190 848
Other intangible assets 74 348 213 238 174 801
Deferred taxation 14 596 4 316 20 087
824 819 2 396 677 1 287 733
Current assets
Inventories 52 225 94 113 72 049
Trade and other receivables 170 646 349 010 269 284
Taxation receivable 5 573 5 686 5 502
Bank and cash balances 33 727 219 652 136 447
262 171 668 461 483 282
Assets classified as held for sale 45 067 - -
Total assets 1 132 057 3 065 138 1 771 015
EQUITY AND LIABILITIES
Share capital and premium 1 732 382 1 732 382 1 732 382
Cash flow hedging reserve (3 925) (5 543) (4 340)
Accumulated loss (1 427 464) (58 240) (1 098 898)
Ordinary shareholders` interests 300 993 1 668 599 629 144
Outside shareholders` interests (7 150) 3 464 -
Total shareholders` interests 293 843 1 672 063 629 144
Non-current liabilities
Interest-bearing liabilities 204 110 430 116 315 037
Derivative instruments 1 326 2 852 1 940
Vendor loan - 38 482 -
Provisions 3 956 3 956 3 956
Deferred taxation 39 064 205 584 85 487
248 456 680 990 406 420
Current liabilities
Interest-bearing liabilities 262 573 338 722 307 522
Derivative instruments 4 126 4 846 4 088
Vendor loan payable 43 500 14 083 47 000
Trade and other payables 240 559 344 868 325 254
Provisions 17 710 - 19 571
Taxation payable 2 745 6 074 344
Bank overdrafts 18 545 3 492 31 672
589 758 712 085 735 451
Total equity and liabilities 1 132 057 3 065 138 1 771 015
Net asset value per share (cents) 28,2 160,7 60,5
Net tangible asset value per share 20,5 68,0 30,0
(cents)
Abridged consolidated statement of changes in equity
Share Cash flow Accumulated
capital hedging loss
and premium reserve R`000
R`000 R`000
Balances as at 28 February 2009 1 732 382 (5 572) (91 653)
Total comprehensive income/(loss) - 29 33 413
for
the period
Balances as at 31 August 2009 1 732 382 (5 543) (58 240)
Total comprehensive income/(loss) - 1 203 (1 040 658)
for
the period
Balances as at 28 February 2010 1 732 382 (4 340) (1 098 898)
Total comprehensive loss) for the - 415 (328 566)
period
Balances as at 31 August 2010 1 732 382 (3 925) (1 427 464)
Ordinary Outside Total
shareholders` shareholders` shareholders`
interest interest interest
R`000 R`000 R`000
Balances as at 28 February 2009 1 635 157 3 604 1 638 761
Total comprehensive income/(loss) 33 442 (140) 33 302
for the period
Balances as at 31 August 2009 1 668 599 3 464 1 672 063
Total comprehensive income/(loss) (1 039 455) (3 464) (1 042 919)
for the period
Balances as at 28 February 2010 629 144 - 629 144
Total comprehensive loss) for the (328 151) (7 150) (335 301)
period
Balances as at 31 August 2010 300 993 (7 150) 293 843
Segmental analysis
% of total Reviewed % of total
6 months
ended
31 August
2010
R`000
REVENUE
Mining Services
- Continuing operations 57,4 418 520 42,1
- Discontinued operations 9,6 69 669 33,9
Equipment sales and rental 5,5 40 117 -
Construction Materials 27,5 201 117 24,0
100,0 729 423 100,0
EBITDA
Mining Services
- Continuing operations 65,5 40 282 61,1
- Discontinued operations 25,5 15 678 23,3
Equipment sales and rental - - -
Construction Materials 9,0 5 540 15,6
100,0 61 500 100,0
Operating (loss)/profit before amortisation
Mining Services
- Continuing operations 68,3 (33 950) 58,3
- Discontinued operations 19,2 (9 529) 22,0
Equipment sales and rental - - -
Construction Materials 12,5 (6 208) 19,7
100,0 (49 687) 100,0
(Loss)/profit before interest and taxation
("PBIT")
Mining Services
- Continuing operations 50,9 (179 021) 59,1
- Discontinued operations 8,8 (30 842) 25,2
Equipment sales and rental - - -
Construction Materials 40,3 (141 903) 15,7
100,0 (351 766) 100,0
Unaudited % of total Audited
6 months year ended
ended 28 February
31 August 2010
2009 R`000
R`000
REVENUE
Mining Services
- Continuing operations 403 364 45,2 816 561
- Discontinued operations 324 640 31,3 564 678
Equipment sales and rental - - -
Construction Materials 229 314 23,5 424 345
957 318 100,0 1 805 584
EBITDA
Mining Services
- Continuing operations 114 134 80,2 182 411
- Discontinued operations 43 451 5,5 12 477
Equipment sales and rental - - -
Construction Materials 29 298 14,3 32 652
186 883 100,0 227 540
Operating (loss)/profit before amortisation
Mining Services
- Continuing operations 59 380 136,1 70 029
- Discontinued operations 22 403 (62,8) (32 293)
Equipment sales and rental - - -
Construction Materials 20 137 26,7 13 714
101 920 100,0 51 450
(Loss)/profit before interest and taxation
("PBIT")
Mining Services
- Continuing operations 52 529 27,4 (285 392)
- Discontinued operations 22 403 28,4 (295 846)
Equipment sales and rental - - -
Construction Materials 13 884 44,2 (460 703)
88 816 100,0 (1 041 941)
Abridged consolidated statement of cash flows
Reviewed Unaudited Audited year
6 months 6 months ended
ended ended 28 February
31 August 31 August 2010
2010 2009 R`000
R`000 R`000
Operating activities
(Loss)/profit before taxation("PBT") (372 787) 47 460 (1 128 367)
Non-cash flow items and changes in 442 942 152 830 1 426 597
working capital
Net interest paid 21 021 41 356 86 426
Cash generated from operations 91 176 241 646 384 656
Net interest paid in cash (21 021) (40 882) (86 985)
Taxation paid (1 691) (19 201) (29 388)
Cash flows from operating activities 68 464 181 563 268 283
Investing activities
Purchase of property, plant and
equipment
- Expanding operations (1 669) (117 745) (151 215)
- Maintaining operations (17 521) (25 480) (45 774)
Proceeds on disposal of property, 20 310 10 219 15 201
plant and equipment
Net cash outflows from investing 1 120 (133 006) (181 788)
activities
Financing activities
Interest-bearing liabilities raised 11 986 111 386 85 245
Interest-bearing liabilities repaid (171 163) (230 707) (353 889)
Net cash outflows from financing (159 177) (119 321) (268 644)
activities
Net decrease in cash and cash (89 593) (70 764) (182 149)
equivalents
Cash and cash equivalents at the 104 775 286 924 286 924
beginning of the period
Cash and cash equivalents at the end of 15 182 216 160 104 775
the period
Reconciliation of headline (loss)/earnings and core headline (loss)/earnings
Reviewed 6 Unaudited 6 Audited year
months months ended ended
ended 31 31 August 28 February
August 2010 2009 2010
R`000 R`000 R`000
Loss for the period attributable to (328 566) 33 413 (1 007 245)
shareholders of Buildmax
Adjusted for:
Loss on disposal of business - 2 225 2 467
(Profit)/loss on disposal of property, (1 460) 2 962 4 465
plant and equipment
- Gross (2 028) 4 114 6 202
- Taxation 568 (1 152) (1 737)
Impairment of property, plant and 33 247 - 303 752
equipment
- Gross 37 888 - 421 878
- Taxation (4 641) - (118 126)
Impairment of goodwill and other 223 893 - 635 459
intangibles
- Gross 255 847 - 647 288
- Taxation (25 791) - (7 716)
- Outside shareholders` interest (6 163) - (4 113)
Headline (loss)/earnings attributable to (72 886) 38 600 (61 102)
ordinary shareholders
Adjusted for:
Amortisation of intangible assets 5 851 7 632 15 264
- Gross 8 344 10 879 21 758
- Taxation (2 336) (3 046) (6 092)
- Outside shareholders` interest (157) (201) (402)
Deemed interest incurred on vendor loan - 474 474
Core headline (loss)/earnings (67 035) 46 706 (45 364)
attributable to ordinary shareholders
Supplementary information
Reviewed Unaudited Audited year
6 months 6 months ended
ended ended 28 February
31 August 31 August 2010
2010 2009
Headline (loss)/earnings per share (cents)
- Continuing and discontinued (7,0) 3,7 (5,9)
operations
- Continuing operations (5,2) 2,6 (11,0)
Core headline (loss)/earnings per share
(cents)
- Continuing and discontinued (6,4) 4,5 (4,4)
operations
- Continuing operations (4,7) 3,4 (9,5)
Basic (loss)/earnings per share (cents)
- Continuing and discontinued (31,6) 3,2 (96,8)
operations
- Continuing operations (27,9) 2,4 (71,5)
Shares in issue (`000)
- at end of the period 1 040 700 1 040 700 1 040 700
Notes to the reviewed consolidated interim results
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The reviewed consolidated interim financial statements for the six months
ended 31 August 2010 have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), specifically IAS 34 Interim Financial
Reporting and AC 500 Statements, and comply with the requirements of the
South African Companies Act, 1973 and the Listings Requirements of JSE
Limited. The accounting policies applied by the group in the consolidated
interim financial statements for the six months ended 31 August 2010 are
consistent with those applied in the audited annual financial statements for
the year ended 28 February 2010.
The consolidated interim financial statements have been reviewed by the
external auditors, PKF (Jhb) Inc., and their unqualified report is available
for inspection at the registered office of the company.
Commentary
Introduction
The directors present the group`s reviewed consolidated results for Buildmax
for the six months ended 31 August 2010 ("the period"). The results reflect
the impact of the global recession on the sectors in which Buildmax operates,
and specifically the adverse domino effect on the second-hand yellow metal
fleet market worldwide.
The group operates through three business units: Mining Services, Equipment
Sales & Rental and Construction Materials. During the period Buildmax
continued with significant restructuring initiatives in its Mining Services
business unit and began formulating an expansion and diversification strategy
to penetrate less capital intensive areas of the mining services supply chain
going forward.
Overview
The industries in which Buildmax operates continue to be affected by the
global economic crisis. The group`s principal business - opencast mining
services - is, amongst other factors, highly dependent on fleet replacement
and securing reasonable prices for its second-hand equipment. The low levels
of activity in global markets in the wake of the economic downturn have
resulted in a surplus of second-hand equipment and vehicles, which has
reduced second-hand resale prices by as much as 50%, to the detriment of the
group. This situation is expected to continue, negatively impacting on the
group as a substantial percentage of the fleet will need to be replaced in
the next five years.
In light of this and compounded by the tougher credit climate, Buildmax has
been forced to continue with extending the useful life of assets beyond the
ideal replacement cycle. Consequently production has been pressured and
maintenance costs increased, which has reduced top and bottom line growth.
Wherever possible, albeit in a constrained market, the group continues to
dispose of equipment when compelling opportunities present themselves. To
this end a new business unit, Equipment Sales and Rental, was formed in the
period. This new business unit will focus on improving the group`s second-
hand brand equity as well as the efficiency of asset disposal compared to ad-
hoc disposals of assets in the various businesses in the group. The financial
results of this business unit are reported under Mining Services.
Further, with effect from the start of the current financial year, Buildmax
has adopted a more appropriate depreciation policy, which is now based on the
actual hours worked by the mining assets. Utilising the services of internal
and external industry experts, management has revised the residual values and
useful lives of all items of property, plant and equipment and adjusted them
accordingly.
Repeating the previous year`s exercise, during the period management again
conducted a critical review of the value of the Mining Services fleet ("the
review"). As a result the carrying value has been impaired by R16.6 million
before tax (in continuing operations) and by R21.3 million before tax (in
discontinued operations).
Although accounting standards dictate that the carrying value of goodwill
must be tested for impairment at least annually, given the deterioration in
the outlook for the industries in which the group operates it was decided to
test for impairment at the interim stage. This entailed calculating the
recoverable amount of any business (referred to as a cash generating unit
("CGU")) to which the goodwill applies and comparing it to the carrying value
of that CGU. Where the recoverable amount is less than the carrying amount,
the goodwill is impaired. Where the recoverable amount remains lower than
carrying value after writing-off the goodwill, the group is obliged to write-
down other assets starting with intangibles and followed by property, plant
and equipment ("PPE") until the carrying value equals the recoverable amount.
This exercise resulted in goodwill and intangible assets being impaired by
R255.8 million (before tax).
Discontinued Operations
In line with the stated intention in the previous year`s annual report,
management reassessed the business risks relating to Vukuza Earth Works (Pty)
Limited ("Vukuza") - a subsidiary in the Mining Services business unit - as a
result of continued operating losses. Accordingly the Vukuza operations have
been slowly wound down: all loss-making opencast mining contracts were
terminated and the unit`s business model was changed to one of short-term
plant and equipment rental for preferred customers as well as sales (included
in continuing operations). Consequently operating losses were incurred and a
retrenchment programme was necessary. Management expects that the wind-down
of Vukuza, including the sale of assets, will be completed by the end of
FY2012.
Debt and Cash
The group`s gross debt was R490.7 million at the end of the period,
significantly lower than the R780.0 million for the comparative period and
the R660.3 million at year-end. Cash holdings were approximately R15.2
million, down 93% from the cash holdings of R216.2 million for the
comparative period and 86% from the R104.8 million at year-end.
Capital expenditure
As discussed above, the tight bank lending environment for new equipment is
an impediment to the equipment replacement cycle. This has resulted in
substantially lower capital expenditure ("capex") for the period. Gross capex
amounted to R19.2 million, 87% lower than in the comparative period.
Rights Issue
In order to strengthen the group`s balance sheet by further reducing interest-
bearing debt, to fund working capital and to potentially provide equity for
capex for Mining Services, the group successfully raised R300 million through
a rights offer to qualifying shareholders. The group`s bankers have agreed to
continue the current banking facilities and to renegotiate the borrowing
covenants. The rights offer was successfully completed on 15 November 2010.
Shareholders are referred to the SENS announcement dated 16 November 2010 in
this regard.
Staff complement
At the end of August the group employed 2 300 people, down from 3 450 at year-
end.
FINANCIAL RESULTS
All comparatives are to the interim results for the period ended 31 August
2009.
Continuing operations
Revenue grew by 4.3% to R659.8 million (August 2009: R632.7 million). EBITDA
decreased by 68.1% to R45.8 million (August 2009: R143.4 million). Including
non-cash impairment losses of R241.9 million (R163.7 million on goodwill;
R66.3 million (after tax) on intangible assets (before tax - R92.1 million);
and R11.9 million (after tax) on PPE (before tax R16.6 million) (August 2009:
nil), the loss before taxation increased to R334.4 million (August 2009:
profit before tax of R36 million).
As reported previously, the decrease in profitability was attributable to the
economic slowdown as well as the factors highlighted below:
The continued deterioration in the construction industry during the period;
The continued decline in the value of second-hand equipment and the scarcity
of bank finance for new equipment forcing the Mining Services business unit
to hire in equipment at punitive rates and increasing the use of sub-
contractors; and
The Mining Services business unit having to extend the life of its yellow
metal fleet, resulting in increased maintenance costs and reduced plant
availability and productivity.
Shareholders` funds decreased to R293.8 million (August 2009: R1 672.1
million). Net asset value per share reduced from 160.7 cents to 28.2 cents
and net tangible asset value per share decreased from 68.0 cents to 20.5
cents.
The loss per share after impairments of non-current assets amounted to 27.9
cents compared to the comparative period profit of 2.4 cents.
Discontinued operations
Revenue was R69.7 million, with EBITDA of R15.7 million and an operating loss
of R9.6 million. Following the review (explained above), the carrying value
of the fleet was impaired by R21.3 million. Including the impact of the
impairment on PPE, discontinued operations reported a loss before interest
and taxation of R30.8 million.
Core HEPS and 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 IFRS. Core HEPS is therefore, in management`s opinion,
the best indicator in comparing the period with prior periods.
The group recorded a core headline loss per share ("Core HLPS") and a
headline loss per share ("HLPS") of 4.7 cents and 5.2 cents, respectively,
compared to a core headline profit per share ("Core HEPS") of 3.4 cents and
headline profit per share ("HEPS") of 2.6 cents, respectively, for the
comparative period.
The factors to which the Core HLPS was attributable remain as previously
reported on and explained above.
Mining Services
Revenue decreased by 32.9% to R488.2 million (August 2009: R728.0 million).
EBITDA reduced by 64.5% to R56 million (August 2009: R157.6 million). The
business unit incurred a loss before interest and taxation of R209 million
including impairments of R140.5 million on goodwill, intangible assets and
equipment.
Gross capex for the period of R13.8 million was 88.8% lower than the
comparative period`s capex of R122.1 million. The business unit remains
cautious in committing to capex, with anticipated expenditure in this regard
for FY2011 being significantly less than in 2010.
The Equipment Sales and Rental business unit delivered revenue of R40.1
million. After the allocation of overheads the business unit reported break-
even results on the EBITDA reporting line.
Construction Materials
Public sector expenditure on infrastructure has slowed significantly since
the World Cup and although government has announced further major
infrastructure projects, there is some uncertainty about its ability to
successfully implement these within the indicated time frame. Despite
successive interest rate cuts private sector spending is yet to recover. It
appears unlikely that the construction market will recover before the latter
part of 2011 or early 2012.
With the exception of disappointing results from the Bricks and Blocks
division, the business unit delivered budgeted results (before providing for
the impairment of goodwill, intangible assets, equipment and vehicles)
despite difficult market conditions. Revenue was R201.1 million, a decrease
of 12.3% from the R229.3 million for the comparative period. Margins were
eroded as a result of increased input costs, which the divisions were unable
to pass on to customers. EBITDA declined to R5.5 million (August 2009: R29.3
million). The business unit incurred a loss before interest and taxation of
R141.9 million. This loss includes impairments of R131.9 million on goodwill
and intangible assets.
Gross capex for the period was R5.4 million, 74.4% lower than capex for the
comparative period of R21.1 million. Capex was financed by internal cash
resources. No significant capex is forecast in the short-term for this
business unit.
TRANSFORMATION
Black shareholding in the group of 17% has diluted significantly post the end
of the period due to the finalisation of the rights issue. The Transformation
Committee has formulated a three to four-year plan to improve the group`s
rating to a Level 4 contributor.
SAFETY, HEALTH, ENVIRONMENT & QUALITY (SHEQ)
Buildmax continually strives to provide a safe working environment for all
employees and sub-contractors. A number of projects to further improve SHEQ
standards have continued to be initiated. These include an increase in the
number of SHEQ inspectors, adopting standard reporting protocols, setting
performance targets and implementing a management information system.
PROSPECTS
Mining Services
Coal remains one of the cheapest sources of energy in the world. Its abundant
reserves compared to other fossil fuels means that it is likely to remain the
primary source of energy for the foreseeable future.
While Eskom has curtailed its projected demand for coal over the medium-term
and has announced its intention to introduce alternative energy sources, the
continued roll-out of coal fired power stations coupled with international
demand for thermal coal, particularly from China and India, should ensure
continued growth in this sector.
Additional export capacity continues to come on stream at Richards Bay,
Durban and Maputo. Exports from Richards Bay for the first ten months of 2010
are higher than the corresponding period last year. Further, Transnet has
announced that it intends to increase the size of its rolling stock fleet
which should alleviate some bottlenecks currently experienced by coal
exporters.
The Buildmax group has meaningful contractual relationships with the leading
mining groups in the country, which it intends to extend for mutual benefit.
Mining Services is well positioned to participate in additional coal mining
supply chain activities that are less capital intensive going forward.
Management is currently formulating a strategy in this regard. The directors
are optimistic that this market will provide profitable opportunities for the
Mining Services business unit in the future.
Construction Materials
The outlook for the construction industry is reliant on spending by
government and the private sector. The dearth of credit continues to hamper
public sector projects while high levels of debt, excess stock and a lack of
bank funding continue to impact negatively on the private sector. Forecasting
the timing of a recovery in the construction sector is extremely difficult.
However, the current trend in the Construction Materials business unit is not
expected to reverse until, at the earliest the latter half of 2011 or early
2012.
The businesses are well positioned to benefit from improved trading
conditions as and when they occur.
Group
The restructuring of the Mining Services business unit (as above) will only
be completed towards the end of the 2010 calendar year. An improvement in
results is nonetheless expected for the six months to year-end, albeit that a
loss is still anticipated. The proceeds of the rights offer and the right-
sizing of Mining Services will lead to an improvement in Buildmax`s financial
position, with borrowings expected to decrease significantly by end-FY2011.
Management`s identification of the need to diversify into less capital
intensive business activities in the Mining Services business unit should
contribute towards future growth.
BOARD OF DIRECTORS AND MANAGEMENT
During the period, and in line with the requirements of King III, CJM Wood
was appointed as Independent Non-executive Chairman of the board and TP
Bantock assumed the position of CEO, both effective 23 September 2010.
In order to strengthen the management of the group, the EXCO has been
constituted as follows:
Terry Bantock (CEO);
Christie Els (CFO);
Paul de Klerk (Group Strategic Director and CEO of Construction Materials
SBU),
Kobus van Biljon (CEO Mining Services SBU);
Herman Fourie (Executive Director: Commercial and Finance of Mining Services
SBU); and
Thandeka Mgoduso (Group Human Resources and Strategic Transformation
Director).
INTERIM DIVIDEND
No interim dividend has been declared. It is the group`s policy to consider
the declaration of a dividend annually.
APPRECIATION
We believe we have an outstanding management team who are operating with
great enthusiasm and determination to steer the company in a profitable
direction. While there remain many challenges to be overcome, we are
confident that Buildmax is becoming a profitable company with solid growth
prospects in its target markets.
We would like to thank our fellow directors, management teams and employees
for their hard work and dedication under very trying conditions. We also
thank our customers, suppliers, service providers, shareholders and advisors
for their ongoing support.
Colin Wood Terry Bantock
Independent Non-executive Chairman Chief Executive Officer
Directors: CJM Wood* (Chairman); TP Bantock (CEO); CS Els (CFO) CB Brayshaw*;
MD Lamola*; DJ Mack*; A Maharaj*; M Matisonn*; R Munitz*; BT Ngcuka*;?(*Non-
executive director,?Independent)
Registered office: 514 Pretoria Road, Fairleads AH, Benoni, 1512 (Postnet
Suite 435, Private Bag X108, Centurion, 0046)
Auditors: PKF (Jhb) Inc., 42 Wierda Road West, WierdaValley, Sandton, 2196
Transfer secretaries: Computershare Investor Services (Pty) Limited, 70
Marshall Street, Johannesburg, 2001 (PO Box 61763, Marshalltown, 2107)
Company secretary: Probity Business Services (Pty) Limited, 3rd Floor, JHI
House
Sponsor: Java Capital
Date: 19/11/2010 12:44:01 Produced by the JSE SENS Department.
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