| Tue 27 Jun 2006, 17:00 | | Buildmax Limited - Audited financial results for t |
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BDM
BDM
Buildmax Limited - Audited financial results for the year ended 31 March 2006
BUILDMAX LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1995/012209/06)
Share Code BDM & ISIN ZAE000011250
("Buildmax", the company or "The Group")
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2006
HIGHLIGHTS FOR THE YEAR:
Revenue +13.7%
Operating Profit +18.3%
Earnings per share +72.2%
Nett Asset Value +10.0%
Dividend +50.0%
The consolidated audited results of Buildmax Limited and its subsidiaries for
the year ended 31 March 2006 are set out below:
% 12 months 12 months
Change 31/03/2006 31/03/2005
(audited) (audited)
R"000 R"000
ABRIDGED BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment 8 857 9 453
Investments - -
Deferred taxation 955 2 522
Current assets 46 027 39 762
Total assets 55 839 51 737
EQUITY AND LIABILITIES
Share capital and reserves 39 357 35 789
Long-term liabilities 44 69
Deferred taxation - 48
Current liabilities 16 438 15 831
Total equity and liabilities 55 839 51 737
Net asset value per share (cents) 94.14 85.61
Share capital and reserves 39 357 35 789
Divided by weighted average number 41 806 41 806
of shares in issue
Net tangible asset value per share 9.97% 94.14 85.61
(cents)
ABRIDGED CASH FLOW STATEMENT
Operating activities 3 531 4 439
Investing activities (1 365) 1 183
Financing activities ( 26) ( 21)
Net cash generated 2 140 5 601
Cash and cash equivalents 9 762 4 161
beginning of year
Cash and cash equivalents end of 21.92% 11 902 9 762
year
ABRIDGED INCOME STATEMENT
Gross revenue 13.70% 104 561 91 959
Operating profit 5 330 4 832
Net interest received 701 267
Profit before taxation 18.28% 6 031 5 099
Taxation (2 045) 701
Net profit for the year -31.28% 3 986 5 800
Extraordinary items - (3 485)
Net earnings for the year 72.18% 3 986 2 315
Earnings per share (cents) 72.18% 9.53 5.54
Net profit for the year 3 986 2 315
Divided by weighted average number 41 806 41 806
of shares in issue
Headline earnings per share -30.74% 9.44 13.63
(cents)
Profit before taxation 6 031 5 099
Adjusted for:
(Profit) on sale of property, ( 38) ( 100)
plant and equipment
Taxation (2 045) 701
Headline earnings 3 948 5 700
Divided by weighted average number 41 806 41 806
of shares in issue
ABRIDGED STATEMENT OF CHANGES IN
EQUITY
Equity beginning of year 35 789 33 949
Prior year Adjustment AC105 - - ( 475)
Leases
Dividend Paid ( 418) -
Net profit for the year 3 986 2 315
Equity end of year 9.97% 39 357 35 789
COMMENTARY
The Board is proud to announce that the Group achieved projected results for
this reporting period. The results for the Group have proved that the turnaround
is sustainable, with strong operational performance reported by most divisions.
Management continues to remain dedicated to growth and excellent service
delivery to our customers.
Turnover increased from R91.9 million to R104.6 million, with operating profit
increasing from R5.1 million to R6.0 million. Basic earnings per share improved
by 72.2% to 9.53 cents per share (2005: 5.54). This is largely as a result of
the provision against the loans to the holding company in the prior financial
year. The headline earnings declined as a result of deferred taxation to 9.44
cents (2005: 13.63 cents).
The net asset value per share improved by 10% to 94.14 cents per share (2005:
5.4% to 85.61 cents).
OPERATIONAL REVIEW
Operating profit before tax improved by 18.28% to R6.03 million with all
divisions now being profitable. This is the first time in the history of the
Group that all divisions have simultaneously achieved a profit.
Cash resources have increased considerably, once again, allowing the Group to do
most of its acquisitions and expansion without taking on unnecessary debt. A
financing facility was arranged for the purchase of the new VBX4 brick making
machine at the Concrete division. Although this facility is in place and
remains available, the Group only partially made use of this facility and
managed to finance the bulk from cash resources.
The Galvanised division continued to show growth in all aspects. During the last
six months, the major steel producers introduced limitations on volumes that
steel users could purchase. This was partly offset by improved buying and
improved stock management. The division showed positive improvements in the net
profit as a result of cost reductions implemented in the prior year.
The Concrete division continued its strong growth from the prior year on the
back of improved demand for its products. Order intake has shown a continued
growth during the year. Due to unforeseen delays, the VBX4 brick making machine
purchased for this division, was not fully installed and operational in October
2005 as anticipated, but only during April 2006. The increased turnover results
will therefore only be achieved in the next financial year.
Despite the strong Rand, the Timber division improved its overall performance.
Turnover increased by 8.5% while net profit improved by 148%. This division is
currently experiencing strong competition from major timber importers who were
previously wholesalers and have now ventured into supplying the end users. The
machine shop however, remains an asset and allows us to turn a major portion of
the imported timber into value added products.
The Aluminium division increased the number of installation teams substantially
during the year under review. This improved the capacity of the division and as
a result the division has shown good growth in its profitability. The division
is currently trying to improve its efficiency to reduce the effect of the steep
increases in the fuel price.
Capital expenditure amounted to R1.4 million during the year under review. A
further R4 million has been committed to install the VBX4 machine in the
Concrete division. As at the end of the financial year, the Group has paid R3
million in cash as a deposit for this machine and related improvements.
PROSPECTS
The trading environment for most of the businesses in the Group remains
favourable. Increases in the price of metals will have a positive impact on the
Group"s turnover, provided that these increases can be passed on to the
consumer, in an extremely aggressive competitive market environment. The new
VBX4 machine at the Concrete division will enable us to venture into new markets
and should have a vast impact in the revenue and profit margins of that division
and the Group. The Board is currently investigating the feasibility of future
expansion and acquisitions.
DIRECTORATE
No changes have been made to the Directorate during the year.
SHAREHOLDERS DIARY
The Annual General Meeting is scheduled for 21 September 2006 and formal notices
will be mailed with the Annual Report.
ACCOUNTING POLICY
The financial results have been prepared in accordance with International
Financial Reporting Standards ("IFRS") which were adopted with effect 1 April
2004.
The Group is reporting under IFRS for the first time and the disclosure by IFRS
1: First-time Adoption of International Reporting Standards concerning the
transition from South African Statements of Generally Accepted Accounting
Practice to IFRS and the requisite changes in accounting policies are set out
below.
The following IFRS statements have impacted the Group"s accounting policies:
Operating Lease Commitments
Operating lease commitments of the Group are recognised as an expense on a
straight-line basis over the period of the lease.
Property, Plant and Equipment
The Group has elected to use the historical cost, by component, depreciated over
the useful lives of the asset.
Deferred Tax
Deferred tax has been adjusted for the changes made to the carrying value of
assets and liabilities.
Reconciliation of restated income attributable to equity holders as reported
under IFRS
31 March 31 March
2006 2005
R"000 R"000
As previously reported under 4 612 3 041
GAAP
Adjusted for:
IAS 17 - Leases (882) (1 023)
Taxation on the above 256 297
As restated under IFRS 3 986 2 315
The opening retained income has been restated by R475 000 in respect of IAS 17
changes prior to 1 April 2004 as per the abridged Statement of Changes in
Equity.
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 3) of 1.5c per ordinary share has been declared for the
financial year under review - (2005: 1c)
The dividend is payable to shareholders of ordinary shares recorded in the books
of the company at the close of business on Friday, 28 July 2006, 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 - Friday, 21 July 2006
Ordinary shares trade "ex" dividend - Monday, 24 July 2006
Record date - Friday, 28 July 2006
Payment date - Monday, 31 July 2006
Share certificates may not be dematerialised or rematerialised between Monday,
24 July 2006 and Friday, 28 July 2006, both days inclusive.
For and on behalf of the board
IDP Burger NR Jansen
Chairman Acting CEO
Germiston
28 June 2006
Directors: IDP Burger (Chairman)
NR Jansen (Acting CEO)
MD Lamola (Independent Non-executive)
MD Smullen (Non-executive)
JPG Vorster (Executive Director)
Company Secretary: HD Venter
Registered Office: Davey Street, Germiston, 1400
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Limited,
Ground Floor, 70 Marshall Street, Johannesburg, 2001
Sponsor: Sasfin Capital, a division of Sasfin Bank Limited,
Sasfin Place, 13 - 15 Scott Street, Waverley, 2090
Date: 27/06/2006 05:00:24 PM Produced by the JSE SENS Department
