Wrap Text
Financial results for the six months ended 31 August 2025 –
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" or the "Group")
FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2025 –
Short-form announcement
FINANCIAL HIGHLIGHTS
31 August 31 August
2025 2024 Change
R'm R'm %
Revenue 169,9 224,5 (24,4)
EBITDA (6,5) 25,3 (125,5)
EPS (cps) (1,8) 0,9 (300,0)
HPS (cps) (1,9) 1,1 (272,7)
NAV (cps) 11,8 14,9 (20,8)
NTAV (cps) 8,0 12,8 (37,5)
Note: No dividends have been declared for the six months ended 31
August 2025 or 31 August 2024.
Revenue decreased to R169,9 million (H1 F2025: R224,5 million) for
the reporting period, with the Group realising a loss before
earnings from its associate of R15,3 million (H1 F2025: profit
before earnings from associate R5,6 million). The investment in
associate contributed positive returns of R1,1 million (H1 F2025:
R2,2 million) for the reporting period.
The Group, therefore, reported a loss for the period of R14,2
million (H1 F2025: profit of R7,8 million). The loss primarily
attributable to the decrease in revenue of R54,6 million,
reflecting adverse market conditions, weaker demand and lower coal
production volumes during the period.
Overall, gross profit decreased by 104,3% to a loss of R1,6
million (H1 F2025: gross profit of R38,3 million) as a result of
lower revenue, increased costs relating to environmental
provisions and a decrease in the coal work-in-progress inventory
levels.
The Group reported a loss before interest, taxation and earnings
from associate of R14,3 million (H1 F2025: profit of R16,4
million).
- The Bricks segment achieved an operating profit before interest
and taxation of R2,3 million (H1 F2025: R16,5 million), while
- The Coal segment recorded an operating loss before interest and
taxation of R16,6 million (H1 F2025: operating loss before
interest and taxation of R0,1 million).
Other income, administrative expenses, distribution and other
expenses decreased by 42,3%, primarily due to the reversal of
previously recognised expected credit losses of R5,9 million
relating to the Group's related party receivable.
No major capital investments or disposals were made during the
reporting period.
The sale of the Rayton property was finalised during the reporting
period. Consent in terms of section 11(1) was granted by the
Minister on 15 January 2024, and the cession of the mining right
was registered on 10 April 2024. Registration at the title deeds
office took place on 18 March 2025, concluding the transaction.
Proceeds of R2,2 million were received upon registration.
BRICKS SEGMENT
Revenue in the Bricks segment decreased by 8,6% to R105,3 million
(H1 F2025: R115,2 million). The reduction is mainly due to a
slowdown in construction activity and softer market demand during
the reporting period.
Gross profit in the Bricks segment decreased by 46,3% to R19,3
million (H1 F2025: R36,0 million) with the gross profit margin
decreasing to 18,4% (H1 F2025: 31,2%). The decrease reflects the
lower revenue and persistent input cost pressures, partially
offset by ongoing cost control initiatives.
Revenue declined by 8,6% compared to the six months ended 31
August 2024, while the cost of production decreased by 2,7% over
the same period. Management continues to monitor production costs
closely while maintaining sufficient work-in-progress and finished
goods ahead of the rainy season.
COAL SEGMENT
Revenue in the Coal segment declined by 41% to R64,5 million (H1
F2025: R109,3 million), primarily due to delays in securing new
off-take agreements and reduced mining volumes resulting from
limited operational activity at the mine.
Gross profit in the Coal segment decreased to a loss of R21
million (H1 F2025: profit of R2,2 million). The decline is driven
by the R44,8 million reduction in revenue compared to the previous
period and an increase of R6,8 million in the environmental
restoration provision.
During the six-months ended 31 August 2025, the service provider
failed to meet the tonnage requirements for the ramp-up period as
well as the underpin tonnage target, as a result of delays in
obtaining secured off-take agreements for coal mined. The
representatives of the service provider indicated that mining the
required tonnages was not commercially viable without confirmed
off-take agreements.
As announced on SENS on 9 September 2025, shareholders were
advised of the conclusion of two new and significant off-take
agreements for the Coal segment:
- A three-year coal supply agreement with Eskom's Grootvlei Power
Station, totalling approximately 2 800 000 tonnes; and
- a one-year renewable supply agreement with a private company,
totalling approximately 600 000 tonnes of coal.
These agreements fall under the existing life-of-mine Contract
Mining and Coal Purchase Agreement with Ilangabi Colliery (Pty)
Ltd, signed on 29 June 2023 in respect of Brikor's Grootfontein
and Vlakfontein mining rights (the "Coal Agreement"), which was
previously approved by shareholders. These agreements are expected
to support achieving the minimum monthly mining tonnages of
150 000 tonnes, enabling Brikor to earn the agreed margin under
the Coal Agreement.
Supply under the Eskom agreement had not yet commenced at the date
of this report.
CORPORATE ACTIVITY DURING THE REPORTING PERIOD
Update on the Contract Mining and Coal Purchase Agreement
Please refer to the disclosures under the Coal segment section
above.
Buy-back of ordinary shares
As announced on SENS on 28 February 2025, the Board approved a
share buy-back agreement between the Company and the trustees of
the Brikor Share Incentive Scheme.
Under this agreement, the Company repurchased 15 900 000 ordinary
shares at 14 cents per share for a total of R2 385 000, based on
the 30-day volume-weighted average trading price of a Brikor share
on the JSE immediately preceding 19 February 2025.
The purchase price was offset against the amount owing by the
Trust to the Company, resulting in no cash flow impact for Brikor.
The rationale for the repurchase was that the Trust had not
allocated any shares to employees and was in the process of being
wound down.
Shareholders approved the repurchase by written resolution in
terms of section 60 of the Companies Act, as announced on 6 May
2025.
PROSPECTS AND OPPORTUNITIES
The Board remains optimistic about the Group's long-term growth
potential, particularly through leveraging the synergies between
its various entities.
Strategic focus areas for the year ahead include:
- Expanding production capacity within the Bricks segment;
- Ensuring the sustainable management of mineable reserves; and
- Leveraging newly secured off-take agreements to restore
profitability in the Coal segment.
These initiatives are central to unlocking value and driving
sustainable growth across the Group.
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 26 November 2025 via the JSE link and also
available on the Company's website at
https://brikor.net/wp-content/uploads/2025/11/INT25.pdf.
Copies of the full announcement may also be requested by
contacting 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/2025/jse/isse/bik/INT25.pdf.
26 November 2025
Nigel
Designated Adviser
Exchange Sponsors
Date: 26-11-2025 10:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
