| Mon 13 Jun 2005, 9:58 | | Buildmax Limited - Audited Financial Results For |
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Buildmax Limited - Audited Financial Results For The Year Ended 31 March 2005
BUILDMAX LIMITED
?Incorporated in the Republic of South AfricaU
?Registration Number : 1995/012209/06U
Share Code BDM ISIN ZAE000011250
?`Buildmax`, `the company` or ` The Group`U
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2005
HIGHLIGHTS FOR THE YEAR :
Revenue +17.95%
Operating Profit +181%
Headline Earnings +195%
COMMENTARY
We are pleased to announce that the group performance for the past twelve months
was extremely better than the previous financial year. Turnover increased from
R77.960 million to R91.959 million, with operating profit increasing from
a loss of R7.231 million to a profit of R5.855 million. The group is
still cash generative and self financing and is not utilising any banking
facilities. The headline earnings improved to 15,18 cents compared to a
headline loss of 16.17 cents in the previous year. The net asset value per
share recovered to 88.48 cents per share ?2004 : 81.21 centsU
OPERATIONAL REVIEW
The turnaround in the group is mainly the result of greater efficiency in
management, stabilising in steel prices and growth in the building industry.
Some divisions derived benefit from the favourable environment of lower interest
rates and good growth in consumer disposable income. It is pleasing to note
that with the exception of the timber division, all divisions have now returned
to profitability.
The aluminium division remain the best division in the group. This division
further expanded due to the branch that opened in Port Elizabeth in the previous
year.
The galvanised steel division derived benefit from a more stable market during
the year compared to the previous year. Management initiatives implemented
during the period showed positive results.
The concrete division increased its turnover due to improved trading conditions,
which resulted in the division exceeding the breakeven mark.
The timber division remained under pressure to meet market prices whilst costs
increased with inflation expectations. This division also incurred substantial
maintenance costs on their equipment due to the age of the equipment.
During the past financial year, SMG Holdings Limited, the majority shareholder
in Buildmax (`SMG`) was placed in liquidation, which in effect means that these
Buildmax shares will eventually be sold once the final liquidator has been
appointed and negotiations begin. Such sale may result in a change in the
control of the company. Shareholders will be kept advised in this regard.
PROSPECTS
The board of directors of the company are of the opinion that Buildmax can
maintain the current trend and are striving to achieve revenue of R100 million
for the next financial year. The recent reduction in interest rates, low
inflationary environment and the Soccer World Cup in 2010 should continue to
have a positive influence on the building industry and consumer spending. The
positive trading trend in the 2005 financial year has continued in the first
quarter of the new financial year.
DIRECTORATE
Mr M D Smullen was appointed non-executive director with effect 31 March 2005.
ACCOUNTING POLICY
The financial results have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice and in the manner required
by the South African Companies Act of 1973 and the accounting policies applied
are consistent with those of the prior year.
EXCEPTIONAL ITEMS
The group has found it prudent to provide for a write-off of the loan to SMG,
the total amount being R1 859 983. We are however positive that we will be able
to recover this money - or the bulk thereof - once the liquidators have found a
buyer for the SMG owned Buildmax shares. We have also found it prudent to
provide for R1 624 872, being the balance of the Buildmax investment in New
Republic Bank ?NRBU. Despite expected collections by the Receivers of the
bank, there is a possibility that potential legal costs will exceed any
collections.
AUDIT REPORT
The Group Financial Statements have been audited by Meagher Moynihan, and their
unqualified audit report on these financial statements is available for
inspection at the registered office of the company.
DIVIDEND
A final dividend ?number 2U of 1c per ordinary share has been declared for the
financial year under review ?2004 : NilU. The dividend is payable to
shareholders of ordinary shares recorded in the books of the company at the
close of business on 8 July 2005, being the record date to participate in this
dividend. The dividend declared is payable in the currency of the Republic of
South Africa.
Last date to trade ordinary `cum` dividend 1 July 2005
Ordinary shares trade `ex` dividend 4 July 2005
Record date 8 July 2005
Payment date 11 July 2005
Share certificates may not be dematerialised or rematerialised between 4 July
2005 and 8 July 2005, both days inclusive.
For and on behalf of the board
IDP Burger NR Jansen
Chairman Acting CEO
13 June 2005
Germiston
Directors: IDP Burger ?ChairmanU
NR Jansen ?Acting CEOU
MD Lamola ?Non-executiveU
M D Smullen ?Non-executiveU
J P G Vorster ?DirectorU
Company Secretary: HD Venter
Registered Office: Hillcrest Forum, 731 Duncan Street, Hillcrest, 0083
Transfer Secretaries: 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: 13/06/2005 10:00:06 AM
Produced by the JSE SENS Department
