BRIKOR LIMITED - Financial results for the year ended 29 February 2020- short form announcement

Financial results for the year ended 29 February 2020- short form announcement

BRIKOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013247/06)
JSE Share code: BIK ISIN: ZAE000101945
("Brikor" or the “Company”)

FINANCIAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2020 –
SHORT-FORM ANNOUNCEMENT

FINANCIAL HIGHLIGHTS

                                         29 Feb     28 Feb
                                           2020       2019         %
                                            R’m        R’m    change
Revenue                                   292,7      284,9       2,7
EBITDA                                     16,7       25,6     -34,8
Basic earnings per share (cents)            0,2        1,3     -84,6
Headline earnings per share (cents)         0,1        0,7     -85,7
Net asset value per share (cents)          10,9       10,6       2,8
Net tangible asset value per share (cents) 5,9         5,7       3,5

Note: No dividends have been declared for the year ended 29
February 2020 or 28 February 2019.

Revenue increased to R292,7 million (F2019: R284,9 million)
with gross profit increasing by 7,7% to R62,5 million (F2019:
R58,0 million).

Gross profit increased by 7,7% to R62,5 million (F2019: R58,0
million). Gross profit increased mainly as a result of improved
production efficiencies and the impact of mobile equipment rentals
on the cost of production for the Coal segment. The use of mobile
equipment rentals resulted in direct cost savings relating to
diesel, repairs and maintenance and labour cost. Increased price
competition in the market as well as additional costs of R2,8
million relating to carbon taxes, not applicable in the previous
financial year, added additional strain on the gross profit.

Revenue decreased by 0,4% in the Bricks segment to R161,2 million
(F2019: R161,8 million), mainly due to the economic downturn in
the construction industry, with the sales mix change resulting in
plaster bricks being more in demand than semi-face bricks. The
combination of operational challenges in the first quarter of the
financial year, heavy rainfall during the last quarter and
increased price competition in the market resulted in the revenue
derived from the Bricks segment marginally decreasing in
comparison to the previous financial year. Revenue increased by
6,8% to R131,5 million (F2019: R123,1 million) in the Coal
segment. The increased revenue was a direct result of production
efficiencies in the Coal segment as a result of the use of mobile
equipment rental, which contributed to increased yields.
Operating profit before interest and taxation decreased by 32,5%
to R8,5 million (F2019: R12,5 million). This change is mainly as a
result of increased spend on legal and advisory fees of R3,8
million relating to the pending court cases, an increase of R2,8
million on carbon taxes as well as scrapping of assets to the
value of R0,9 million.

The Group ended the reporting period with an attributable profit
of R1,5 million (F2019: profit from continuing operations of R3,6
million), resulting in basic earnings per share of 0,2 cents
(F2019: 1,3 cents) and basic headline earnings per share of 0,1
cents (F2019: 0,7 cents).

The Group generated cash flows from operations of R12,2 million
(F2019: cash utilised in operations of R5,9 million). Further risk
management included R6,4 million repayment of debt and a saving in
finance costs of R1,5 million. The Group continues to proactively
monitor its cash flows, whilst investing in property, plant and
equipment and managing its risks.

SHORT-FORM STATEMENT
This short-form announcement is the responsibility of the
directors. It is only a summary of the information contained in
the full announcement and does not contain full or complete
details.

Any investment decision should be based on the full announcement
accessible from 22 July 2020, via the JSE link and also
available on the Company’s website at
http://brikor.co.za/webmoduledata/Documents/BIKAFS2020.pdf

Copies of the full announcement may also be requested by
contacting Ms Joaret Botha by email at joaret@brikor.net and are
available for inspection at the Company’s registered office at no
charge, weekdays during office hours.

The JSE link is as follows:
https://senspdf.jse.co.za/documents/2020/jse/isse/bik/BIKAFS2020.pdf

The annual financial statements including the audit opinion of the
external auditor, Nexia SAB&T, which sets out the key audit
matters and the basis for its unmodified opinion, is available on
the Company’s website on
http://brikor.co.za/webmoduledata/Documents/BIKAFS2020.pdf

22 July 2020
Nigel

Designated adviser
Exchange Sponsors

Date: 22-07-2020 05:00:00
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