| Thu 28 Jun 2001, 0:00 | | Buildmax: Preliminary Audited Results For The Year |
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BUILDMAX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1995/012209/06)
("the group")
Preliminary audited results for the year ended 31 March 2001
The audited results of Buildmax and its subsidiaries for the year ended 31
March 2001 are set out below:
31/03/2001 31/03/2000
BALANCE SHEET R'000 R'000
ASSETS
Non-current assets 19 505 22 984
Property, plant and
equipment 15 152 16 984
Deferred taxation 397 -
Investments 3 956 6 000
Current assets 51 990 39 802
Inventories 13 896 14 680
Accounts receivable 12 235 10 220
Taxation 632 -
Cash resources 25 227 14 902
Total assets 71 495 62 786
EQUITY AND LIABILITIES
Share capital and reserves 30 690 28 384
Issued capital and share premium 42 266 42 266
Accumulated loss (11 576) (13 882)
Non-current liabilities
Long-term borrowings 13 4 593
Current liabilities 40 792 29 809
Accounts payable 12 048 13 177
Bank overdraft 24 182 8 404
Short-term borrowings 4 051 7 734
Current portion of interest
bearing borrowings - 152
Taxation 511 342
Total equity and liabilities 71 495 62 786
Net asset value per share (cents) 73,4 67,9
Net tangible asset value
per share (cents) 73,4 67,9
CASH FLOW STATEMENT
Operating activities 1 771 2 085
Investing activities 1 191 436
Financing activities (8 415) (11 900)
Net cash utilised (5 453) (9 379)
INCOME STATEMENT
Turnover 83 641 89 377
Cost of sales (48 116) (59 383)
Profit/(Loss) from operations 3 106 (8 755)
Net interest paid (1 356) (3 339)
Profit/(Loss) before taxation 1 750 (12 094)
Taxation 556 239
Profit/(Loss) after taxation 2 306 (11 855)
Retained (loss) at beginning of year (13 882) (2 027)
Accumulated (loss) at end of year (11 576) (13 882)
Average number of shares
in issue ('000) 41 806 41 806
Earnings/(Loss) per share (cents) 5,5 (28,4)
Headline earnings/(loss)
per share (cents) 5,5 (28,4)
STATEMENT OF CHANGES IN EQUITY
Ordinary shareholders' equity
at beginning of year 28 384 40 239
Movement in non-
distributable reserves - -
Net profit/(loss) for the year 2 306 (11 855)
Balance at end of year 30 690 28 384
REVIEW OF FINANCIAL RESULTS
During the financial period under review, the group continued to operate
under highly competitive trading conditions. Lower than expected activities
in the building and construction industry were experienced in South Africa,
Botswana, Namibia, Lesotho and Swaziland where certain of the group's
products are supplied.
Turnover of R83,641 million was achieved for the 12-month financial year
ended 31 March 2001, a reduction of 6,4% against the previous corresponding
period. The lower turnover was due partly to the declining demand for
rainwater goods and the product rationalisation exercise which was
continuously carried out. Other divisions within the group continued to
record reasonable growth in turnover.
Profit after tax improved significantly from a loss of R11,855 million
previously reported to a profit of R2,306 million in the year under review
mainly as a result of the group's improved margin as evidenced by the 8,9%
reduction in cost of sales compared to the previous year. Better cash flow
management and the continuous efforts to improve the inventory and credit
controls led to savings in finance charges, which reduced from R3,339
million to R1,356 million. Headline earnings per share managed to turn
around from a negative 28,4 cents per share to a positive 5,5 cents per
share, whilst net asset value increased to 73,4 cents per share. These
achievements are primarily indicative of the group's improvement in its
overall performance.
PROSPECTS
The return to profitability has positioned the group to exploit value-
added opportunities that are complementary and synergistic to its current
business activities.
The sale of certain plant and equipment in Watson Tile & Concrete
(Proprietary) Limited to Marley (SA) (Proprietary) Limited and Marley
Roofing (Proprietary) Limited was completed and effected on 1 April 2001 as
advised to shareholders in the circular dated 9 March 2001. Further
reduction in borrowing costs are expected to be realised with the proceeds
of cash R9,5 million from the sale of these assets.
Despite further erosions of market conditions, the board expects that the
overall trend of improved profitability will be maintained during the
current financial period.
DIVIDENDS
No dividend has been declared for the financial year ended 31 March 2001.
On behalf of the board
NB Egan
Director 29 June 2001
Directors:
Dato' AH Samsudin* (Chairman), Nazar Samad* (Group CEO), JH Catsavis, LJ
Nyembe, RK Selvanayagam*, NB Egan * Malaysian
Company secretary:
NB Egan
Registered office:
SMG Holdings Limited, 108 Johan Avenue, Corner Katherine Street, Sandton,
2196
Transfer secretaries:
Computershare Services Limited, 4th Floor, Edura House, 41 Fox Street,
Johannesburg, 2001
