| Tue 26 Oct 2004, 14:19 | | RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004 |
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BUILDMAX - UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004
BUILDMAX LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER: 1995/012209/06)
SHARE CODE BDM ISIN ZAE000011250
(`THE GROUP`)
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004
The unaudited results of Buildmax Limited and its subsidiaries for the six
months ended 30 September 2004 are set out below
6 months 6 months 12 months
30/09/2004 30/09/2003 31/03/2004
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
ABRIDGED BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment 9,345 10,953 10,166
Investments 2,578 4,364 3,036
Deferred taxation 887 563 1,115
Current assets 34,528 33,953 30,013
Total assets 47,338 49,833 44,330
EQUITY AND LIABILITIES
Share capital and reserves 35,974 37,079 33,949
Long-term liabilities 100 - 91
Current liabilities 11,264 12,754 10,290
Total equity and liabilities 47,338 49,833 44,330
Net asset value per share (cents) 86.0 88.7 81.2
Share capital and reserves 35,974 37,079 33,949
Divided by weighted average number of
shares in issue 41,806 41,806 41,806
Net tangible asset value per share 86.0 88.7 81.2
(cents)
6 months 6 months 12 months
30/09/2004 30/09/2003 31/03/2004
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
ABRIDGED CASH FLOW STATEMENT
Operating activities -1,537 -2,017 -3,009
Investing activities 421 -488 1,092
Financing activities 9 0 -274
Net cash (utilised)/generated -1,107 -2,505 -2,191
Cash and cash equivalents beginning of 4,161 6,352 6,352
period
Cash and cash equivalents end of period 3,054 3,847 4,161
6 months 6 months 12 months
30/09/2004 30/09/2003 31/03/2004
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
ABRIDGED INCOME STATEMENT
Gross revenue 44,830 36,369 77,960
Operating profit/(loss) 2,130 -3,989 -7,231
Net interest received/(paid) 518 550 335
Profit/(loss) before taxation 2,648 -3,439 -6,896
Taxation -623 0 327
Net profit/(loss) for the period 2,025 -3,439 -6,569
Average number of shares in issue (`000) 41,806 41,806 41,806
Earnings/(Loss) per share (cents) 4.8 (8.2) (15.7)
Net profit/(loss) for the period 2,025 (3,439) (6,569)
Divided by weighted average number of
shares in issue 41,806 41,806 41,806
Headline Earnings/(Loss) per share
(cents) 4.6 (8.5) (16.2)
Profit/(loss) before taxation 2,648 (3,439) (6,896)
Adjusted for:
Loss/(Profit) on sale of property, plant
and equipment (89) (123) (190)
Taxation (623) - 327
Headline Earnings/(Loss) 1,936 (3,562) (6,759)
Divided by weighted average number of
shares in issue 41,806 41,806 41,806
6 months 6 months 12 months
30/09/2004 30/09/2003 31/03/2004
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Equity beginning of period 33,949 40,518 40,518
Net profit/(loss) for the period 2,025 -3,439 -6,569
Equity end of period 35,974 37,079 33,949
COMMENTARY
The results for the first six months of the financial year have improved
considerably compared to the previous year. Turnover has increased by 23% from
R36.369 million to R44.830 million. Gross margins improved by 7% due to
operational efficiencies and procurement.
Net profit after taxation increased to R2.025 million, compared to a net loss of
R3.438 million over the previous period. Net finance charges earned decreased
marginally to R0.518 million (2003 : R0.550 million).
Earnings per share improved by 158.9% to 4.8c per share (2003 : loss 8.2c). Net
asset value per share decreased to 86.0 cents per share (2003 : 88.7). This
decrease should be compared to the increase from 81.2 cents per share as at 31
March 2004.
OPERATIONAL REVIEW
The group has gone through a very difficult time the previous year and staff
morale was at an all time low. Due to dedicated and committed managers we have
managed to improve staff morale and slowly start turning the group around,
showing the potential that it has.
The growth in turnover has been mostly real growth except for the galvanised
rainwater goods, which improved due to price increases. The upturn in the
building trade has had a very positive influence on the group as most divisions
are in this sector. S Burde and Kensmark is still encountering price increases
from Iscor which places strain on their selling prices and profitability,
however, they still managed to improve on last years figures. Watson Concrete
has increased their turnover marginally and reduced costs from last year to
return to profitability. Watertite Guttering is still the best performing
division in the group and continue to grow the business. The timber division
improved on volumes and profit margins even though the Rand strengthened
considerably and the average R/$ rate for the six month period was only R6.45.
PROSPECTS
The next six months are very crucial to the group results as we have the
builder`s holidays in December and turnover normally drops the first three
months of the year. We also expect the rand to strengthen even more the next
three months, before weakening again. We are however confident that the upturn
in the building industry will continue for at least the next 12 months and will
continue to reflect positive returns in the group. The soccer world cup in 2010
will also have a positive effect on the building industry.
The group does not have any overdraft facility and has been self reliant on cash
to achieve its expectations and barring any unforeseen circumstances the
directors believe that the targets for the financial period ending 31 March 2005
will be met.
DIVIDENDS
No dividend has been declared or recommended.
ACCOUNTING POLICY
The results have been prepared in accordance with South African Statements of
Generally Accepted Accounting Practice and the accounting policies applied are
consistent with those of the prior year.
For and on behalf of the board
I D P Burger N R Jansen
Director Director
27 October 2004
Directors
I D P Burger (Chairman)
N R Jansen (Acting CEO)
M D Lamola (Independent non-executive)
J P G Vorster (Executive)
Company Secretary
HD Venter
E-mail : hdvbuildmax@global.co.za
Registered Office
Hillcrest Forum
731 Duncan Street
HILLCREST, 0083
Share Transfer Office
Computershare Investor Services 2004 (Pty) Limited
Ground Floor
70 Marshall street
JOHANNESBURG, 2001
Sponsor
Sasfin Corporate Finance, a division of Sasfin Bank Limited
Sasfin Place
13 - 15 Scott street
WAVERLEY, 2090
Date: 26/10/2004 02:00:29 PM
Produced by the JSE SENS Department
