| Tue 31 Oct 2006, 16:00 | | Buildmax - Reviewed interim results: six months en |
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BDM
BDM
Buildmax - Reviewed interim results: six months ended 30 September 2006
BUILDMAX LIMITED
(Incorporated in the Republic of South Africa)
(Registration No: 1995/012209/06)
Share Code BDM & ISIN ZAE000011250
("Buildmax" or "The Group")
Reviewed Interim results for the six months ended 30 September 2006
The reviewed interim results of Buildmax Limited and its subsidiaries for
the six months ended 30 September 2006
are set out below:
6 months 6 months 12 months
% 30/09/2006 30/09/2005 2006/03/31
Change (reviewed) (reviewed) (audited)
R"000 R"000 R"000
BALANCE SHEET
ASSETS
Non-current assets
Property, plant and 12,697 9,474 8,857
equipment
Investments - - -
Deferred taxation 95 1,776 955
Current assets 44,896 41,838 46,027
Total assets 57,688 53,088 55,839
EQUITY AND LIABILITIES
Share capital and reserves 41,871 37,299 39,357
Long-term liabilities 616 58 44
Current liabilities 15,201 15,731 16,438
Total equity and liabilities 57,688 53,088 55,839
Net asset value per share 100.16 89.22 94.14
(cents)
Share capital and reserves 41,871 37,299 39,357
Divided by weighted average 41,806 41,806 41,806
number of shares in issue
Net tangible asset value per 12.26 100.16 89.22 94.14
share (cents)
CASH FLOW STATEMENT
Operating activities (1,295) 97 3,531
Investing activities (4,709) (982) (1,365)
Financing activities (78) (428) (26)
Net cash (utilised)/generated (6,082) (1,313) 2,140
Cash and cash equivalents 11,902 9,762 9,762
beginning of period
Cash and cash equivalents end (31.12) 5,820 8,449 11,902
of period
INCOME STATEMENT
Gross revenue 6.77 56,641 53,048 104,561
Operating profit 3,306 2,821 5,330
Net interest received 264 204 701
Profit before taxation 18.02 3,570 3,025 6,031
Taxation (1,222) (1,099) (2,045)
Net profit for the year 21.91 2,348 1,926 3,986
Profit on Discontinued 793 - -
operations
Net earnings for the period 63.08 3,141 1,926 3,986
Average number of shares in 41,806 41,806 41,806
issue ("000)
Earnings per share (cents) 63.08 7.51 4.61 9.53
Net profit for the period 3,141 1,926 3,986
Divided by weighted average 41,806 41,806 41,806
number of shares in issue
Headline earnings per share 13.59 5.16 4.54 9.44
(cents)
Profit before taxation 3,570 3,025 6,031
Adjusted for:
(Profit) on sale of property, (192) (28) (38)
plant and equipment
Taxation (1,222) (1,099) (2,045)
Headline earnings 2,156 1,898 3,948
Divided by weighted average 41,806 41,806 41,806
number of shares in issue
ABRIDGED STATEMENT OF CHANGES
IN EQUITY
Equity beginning of period 39,357 35,791 35,789
Net profit for the period 3,141 1,926 3,986
Dividend paid (627) (418) (418)
Equity end of period 12.26 41,871 37,299 39,357
NATURE OF BUSINESS
Buildmax Ltd operate through four divisions and one subsidiary that supply
galvanised rainwater goods, specialised sheetmetal products, hardwoods,
concrete masonary bricks and seamless Aluminium guttering. The vast client
base ranges from well established wholesalers, retailers and contractors to
the private homeowner for seamless gutters.
FINANCIAL HIGHLIGHTS
Turnover increased by 6.77% to R 56.6 million from R 53.0 million. Improved
operating efficiencies and cost savings resulted in an improvement in Profit
before taxation to R 3.57 million from R 3.025 million (18.02%).
The average tax charge improved marginally from 36.3% to 34.2%. Profit for
the period increased by 21.91% to R 2.34 million compared to R 1.92 million
in the previous year.
During the period under review the tax affairs of Watson Tile & Concrete
(Pty) Ltd was finally concluded and an over provision of R 793 433 was
reversed as a Profit on discontinued operations. The Earnings per share
therefore increased by 63.08% to 7.51c per share from 4.61c per share.
Headline earnings improved by 13.59% to 5.16c per share from 4.54c per
share.
Net asset value per share increased by 12.26% to 100.16 cents per share
compared to 89.22 cents per share in the prior year.
All divisions achieved the expected results except for the concrete
division"s new VBX4 machine. Various delays and unforeseen quality concerns
have resulted in this division under performing in comparison with prior
periods. Management has resolved the quality concerns by procuring high
quality raw materials, albeit at a higher price.
During the reporting period, significant price increases were effected by
the major suppliers of the Group. In certain instances raw materials
increased by up to 37% in the last quarter, placing strain on operating
margins. Due to the relatively low entry level and the perceived building
boom, we have seen a significant increase in competitors in our respective
markets.
PROSPECTS
The increase in the prime lending rate has resulted in a decline in the
residential market. The industrial market remains positive and the Group
will have to position itself to capitalise on this market sector as well as
the repair and alteration market.
DIVIDEND
No dividend has been declared or recommended.
ACCOUNTING POLICIES AND REVIEW
The results have been prepared in accordance with International Financial
Reporting Standards ("IFRS") applicable to interim financial reporting and
the accounting policies applied are consistent with those of the prior year.
The interim financial results have been reviewed in terms of Rule 3.23 of
the Listing Requirements of the JSE Limited by the Group"s auditors, being
Meagher Moynihan. This review opinion is available for inspection at the
registered office of the company.
For and on behalf of the board
IDP Burger NR Jansen
Chairman Acting CEO
Johannesburg
31 October 2006
Directors : IDP Burger (Chairman)
NR Jansen (Acting CEO)
MD Lamola (Independent Non-executive)
MD Smullen (Non-executive)
JPG Vorster (Executive Director)
Company HD Venter
Secretary :
Registered Davey Street, Germiston, 1401
Office :
Transfer Computershare Investor Services 2004
Secretaries: (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: 31/10/2006 04:00:21 PM Produced by the JSE SENS Department
