Wrap Text
Reviewed Interim Financial Results 2014
Buildmax Limited
(Incorporated in the Republic of South Africa)
Registration number 1995/012209/06
Share code: BDM ISIN: ZAE000167318
("Buildmax" or the "group" or the "company")
REVIEWED INTERIM FINANCIAL RESULTS 2014
Headline loss* of R38.4 million decreased from a headline profit of R35.5 million
HEPS* decreased to a loss of 21.5 cents from a profit of 19.6 cents
Basic loss* of R42.4 million compared to earnings of R32.2 million
Basic loss per share* of 23.7 cents compared to earnings per share of 17.8 cents
Revenue* decreased to R550 million from R565.2 million
EBITDA* decreased to R32.3 million from R124.3 million
PBIT* decreased to a loss of R50.5 million compared to a profit of R54.9 million
Net asset value per share decreased to 308.1 cents from 346.6 cents
Tangible net asset value per share decreased to 299.2 cents from 310.0 cents
Interest-bearing debt increased to R450.5 million from R414.3 million
Net interest-bearing debt increased to R433.2 million from R345.2 million
Basic loss** of 33.2 cents per share headline loss** of 7.4 cents per share
Gross CAPEX on new equipment was R240.6 million of which R42.5 million was spent on the expansion of group operations into Botswana
Cash from operating activities decreased to R11.3 million from R123.6 million
Proceeds on sale of assets increased to R102.4 million from R18.5 million
* from continued operations
** from discontinued operations
Business unit contribution to revenue^
Mining services - 72.0%
Civils and earthworks - 17.1%
Aggregates and quarries - 10.9%
Revenue generated in other African countries increased to 14.7% of total revenue (including discontinued operations) 16.5% of revenue generated by continuing operations
^ including discontinued operations
Commentary
Downward pressure on commodity prices has negatively impacted opencast mining activity both locally and internationally.
This dynamic has resulted in fierce competition, an oversupply of plant and poor second-hand equipment values suppressing
the appetite of financial institutions to provide funding to this challenging sector. Due to the group's
exposure to the contract mining and construction sectors, it has experienced extremely tough trading conditions.
Diesel Power Botswana was awarded a 52-month contract with Messina Copper Botswana (Pty) Ltd (trading as "African Copper"),
valued at approximately BWP1.15 billion (R1.38 billion). This contract started in March 2014 at the Thakadu mine, with
strong monthly volumes achieved of 420,000BCM during the August 2014 production month. During October 2014, contractual
activities also started at the Mowana mine, with planned volumes to increase to 550,000BCM per month by November
2014, achieving the contractual performance requirements of the client.
The start-up funding requirements for the Botswana contract, subdued production activity in South Africa, compounded by
the group's conservative asset based funding model, have resulted in constrained cash flow. The tough trading conditions
in South Africa are expected to persist in the near-term and the Botswana business (part funded out of Diesel Power
South Africa) is still in the process of ramping up to full production, prompting management to reconsider the
appropriateness of the group's conservative asset based funding model. Traditionally the group has adopted accelerated
equipment repayments on a 50/30/20 basis – significantly faster than the industry norm. With this in mind, management
has been proactive in approaching the banks and rescheduling certain of these funding obligations. This action was
taken despite having won two new contracts with cumulative values in excess of R1.2 billion, awarded post 31 August 2014
over and above the African Copper contract which will further diversify from our concentration in coal and Mpumalanga.
Safety and quality management
The group boasts a proud track record of more than 51 million fatality free hours. Safety is a core value of the Buildmax
group and is integral to the way it conducts business. It is demonstrated by commitment to high standards and assignment
of specific responsibilities for safety. The value the group places on the safety of employees, and subcontractors is
reflected in the safety vision; "Committed to Efficient Zero Harm Production".
The safety policy and framework supports the group's safety vision, provides direction and sets standards for operations
to develop and manage their proactive safety programs and strategies with the objective of continuously improving their
safety performance. The group's operations continue to maintain certification for the OHSAS 18001: 2007 health and
safety management standard, as well as the ISO 9001: 2008 quality management standard.
People
The quality of our people is a critical source of the group's competitive advantage. We recognise that in order to achieve
the sustained high performance that is necessary for Buildmax to meet the demands of its business environment, it needs to
attract, retain and continuously develop its employees at all levels. The group ran a voluntary retrenchment program in
July 2014, and whilst most senior executives and key skilled employees were retained, it achieved an annualised saving of
approximately R40 million which will benefit future results.
Investment in learning and development remains a top priority across the group which invested R36 million in a range of
training, learning and career development opportunities during the year. A bursary scheme for previously disadvantaged
individuals ensures that Buildmax attracts an ongoing pipeline of mining talent and invests in its transformation strategy.
Operational overview
The group operates within four strategic business units: mining services, equipment sales and rental, civils and earthworks
and aggregate and quarries.
Mining services and equipment sales and rental
The mining services business unit provides opencast mining, rehabilitation services as well as equipment sales and rental.
The scope of these services include expertise in mine planning, pit designing, production scheduling, drilling and blasting,
opencast mining, pillar mining, surveying and mine rehabilitation. The companies that form part of the mining services
business unit include, Diesel Power South Africa, Buildmax Equipment, Diesel Power Congo and more recently Diesel Power Botswana.
Civils and earthworks
Civils and Earthworks, a division of Diesel Power South Africa, is a highly regarded provider of civils and bulk earthworks
services to the mining and property development sector of the economy.
Aggregates and quarries
In July 2014, Buildmax Aggregates and Quarries ("BAQ") entered into a sale of business and assets agreement with Raubex
Group and its wholly-owned subsidiary, Raumix Aggregates ("Raumix"), in terms of which Raumix acquired certain assets of BAQ.
The consideration payable by Raumix was R54.8 million, plus the value of the stock (including stockpiles, spare parts and fuel)
which was received in September 2014. In addition, an Option and Right of First Refusal Agreement was also entered into in terms
of which Raubex is granted a right of first refusal to purchase, and BAQ is granted a put option to sell, effective 1 June 2015 to
31 December 2016, the mining rights held by BAQ’s subsidiaries as well as the related properties. If the put option is exercised
by Buildmax, the price payable would be an aggregate amount of R37 million (comprising the mining right of R30 million plus related
properties with a value of R7 million). This R37 million is a tangible asset reflected under assets held for sale on the Buildmax
balance sheet and the financial results of BAQ have been disclosed as discontinued operations.
Certain leasehold improvements, mine stripping assets, rehabilitation guarantee investments and the provision for future
unfunded rehabilitation commitments, will also be disposed of and have therefore been disclosed as assets held for sale.
In addition, BAQ entered into contract mining together with sale and off-take agreements with Raumix on behalf of its
subsidiaries Crushco, Alfa, Mystic Blue and Verlesha.
Property, plant and equipment
With the continued support of banks and OEM's, the group continued to replace plant, where appropriate, on a consistent basis.
A positive consequence of the replacement policy, implemented during 2011, has resulted in excess of 99% of plant having
operated for less than 20,000 hours.
Furthermore the useful lives of various plant categories range from 8,000 to 36,000 hours depending on the category and brand
of the plant item.
When reviewing the current economic useful lives and residual values of plant management considers the following:
- replacement value
- reliable availability of spare parts
- market value
- maintenance history
- local and international demand
- operational application
- OEM support & their value perspective
- value in use.
Analysis of mining PE per age category at 31 August 2014
5,001-10,000 SMR 34%
10,001-15,000 SMR 18%
15,001-20,000 SMR 7%
>=20,001 SMR 1%
0-5,000 SMR 40%
Financial performance and working capital
The net asset value of the group was R540 million as at 31 August 2014 with a net debt to equity ratio of 80% and a net debt
to book value of 48%. Whilst the debt to equity ratio falls outside of the group's target range of 40% to 60%, these ratios
compare favorably to most industry peers.
In a depressed market environment, the group's continuing revenue declined by 2.7% to R550 million and as a result of a high
fixed cost business model this translated into a reduction in EBITDA of R92 million to R32.3 million from R124.3 million.
This unsatisfactory EBITDA performance was impacted by certain once-off costs amounting to approximately R15 million and an
usually wet March month.
This resulted in a basic loss of 23.7 cents per share and a headline loss of 21.5 cents per share, for continuing operations.
The group's net asset value per share reduced from 346.6 cents to 308.1 cents and the tangible net asset value reduced from
310.0 cents to 299.2 cents per share.
The group has embarked on several cost cutting and consolidation initiatives that is expected to deliver significant annualised
savings in the future.
As previously mentioned, the funding requirements for the Botswana contract, subdued production activity
in South Africa, compounded by the group's conservative asset based funding model, have resulted in constrained cash flow in
South Africa. As a result the group's cash on hand reduced by R76.7 million to R17.3 million at the end of August.
Due to the nature of the conservative asset based funding methodology with our major financial institutions, the group reflects
a net current liability position. Our assets are currently funded over three years on a 50/30/20 basis with no residual value
and have useful lives of between four and ten years.
Post the reporting period, management approached its major lenders with a credible plan to reschedule certain of the group's
asset based funding and transactional banking obligations which continue to be within conservative parameters. The banks have
considered and jointly approved the plan which has 'freed up' working capital in the short term in order to facilitate the
start-up of new contracts and implement further cost cutting and consolidation initiatives. Further discussions will be held
with the banks in the new-year to evaluate progress and formulate a restructured and optimised debt package for Buildmax.
Sustainability
The board and executive leadership team remain committed to building a sustainable business that takes into
account the economic, social and environmental impacts on the communities in which the group operates. This commitment to
sustainable development is driven at a group level, endorsed and measured by the board, and implemented across the operations.
The chairman and directors, through their involvement on various board committees, are accountable for group sustainability
performance. The Buildmax group is committed to conducting its operational activities in an environmentally responsible and
sustainable manner within its scope of control.
Transformation
It is our vision to make the Buildmax group a home for all South Africans, where there are no divisions or boundaries and
where no one feels excluded.
Diesel Power South Africa maintains a Level 4 rating and continues to achieve an effective shareholding in excess of 25%
in terms of the Codes of Good Practice and the Mining Charter.
Governance
The Buildmax group complies with the Companies Act, 71 of 2008 and the Listings Requirements of the JSE Limited.
Outlook and prospects
We are fortunate to have meaningful, value-adding and service orientated contractual relationships with most of the leading
mining groups in the country. Whilst activity in the reporting period has been subdued, management believe that mine owners
will continue to outsource mining and civils services to contractors and our aim is to leverage these strategic alliances.
In order to unlock our strategy, we are highly reliant on our ability to maintain our volumes in the coal sector which is under
pressure largely due to low commodity prices exacerbated by weak global demand. We are however, confident that the current
bearish outlook is cyclical and that we are well positioned to take advantage of outsourcing opportunities. We believe that
the propensity to outsource will increase as a result of the mining houses wanting to reduce risk.
Our experience is that demand in the construction and civils sector of the economy is slowly gaining momentum but margins will
remain under pressure. To this extent we remain optimistic that our civils business will steadily improve in the next twelve
to eighteen months.
One of the most significant risks is labour uncertainty in the industry and the expectation gap between unions' increasing
demands and the ability by companies to meet these requests.
To mitigate against this risk, good communication is imperative and we are pleased to have signed a five-year wage agreement
with our recognised union which expires in February 2017.
Our strategy in a tough operating environment is to continue to aggressively tender for new work at sustainable margins both
in Southern Africa and Sub-Saharan Africa. During November 2014, our tenacity to secure new long-term work was rewarded, and
Diesel Power was appointed as the preferred service provider to execute a large ore and waste handling, crushing, screening,
transport and logistics contract. This significant award in the local gold mining industry marks the achievement of another
strategic, growth and diversification objective of the group. The initial 36 month contract works are valued in excess
of R1.2 billion with significant further scope for similar long-term work and growth identified by the group in this sector
of the local gold mining industry.
Dividend
No interim dividend has been declared.
Acknowledgements
The board would like to express its appreciation to all its customers, staff, business
partners, shareholders and other stakeholders for their support and continued
confidence in the sustainability of the group and its strong underlying businesses.
On behalf of the board:
Colin Wood Terry Bantock Christie Els
Chairman CEO CFO
Johannesburg
27 November 2014
Condensed consolidated statement of financial position
Reviewed Reviewed Audited
31 August 2014 31 August 2013 28 February 2014
R'000 R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 909 042 930 859 901 169
Goodwill and other Intangible assets 21 684 83 731 85 450
Environmental guarantee investment - 940 1 580
Other non-current assets - 1 323 2 222
Deferred taxation 31 851 26 503 24 978
962 577 1 043 356 1 015 399
Current assets
Inventories 19 644 28 758 33 220
Trade and other receivables 209 355 201 817 156 914
Taxation receivable 6 384 184 1 314
Bank and cash balances 18 204 69 040 96 220
253 587 299 799 287 668
Assets classified as held for sale 98 353 - -
Total assets 1 314 517 1 343 155 1 303 067
EQUITY AND LIABILITIES
Share capital and premium 1 994 196 1 994 196 1 994 196
BEE IFRS 2 cost 1 195 1 195 1 195
Foreign currency translation reserve 297 2 297 2 632
Share based payment reserve 13 467 13 181 12 120
Accumulated loss (1 458 383) (1 383 794) (1 356 675)
Attributable to equity holders of the company 550 772 627 075 653 468
Outside shareholders' interests (10 916) (7 158) (6 245)
Total shareholders' interests 539 856 619 917 647 223
Non-current liabilities
Interest-bearing liabilities 194 871 177 667 83 519
Capitalised Finance Leases - - 56 138
Provisions - 886 1 770
Deferred taxation 45 050 73 471 77 931
239 921 252 024 219 358
Current liabilities
Interest-bearing liabilities 255 638 236 615 197 883
Capitalised Finance Leases - - 27 502
Trade and other payables 256 078 224 607 192 025
Provisions 2 690 1 066 -
Taxation payable 5 409 8 926 16 884
Bank overdrafts 921 - 2 192
520 737 471 214 436 486
Liabilities directly associated with assets held for sale 14 003 - -
Total equity and liabilities 1 314 517 1 343 155 1 303 067
Shares in issue at end of period 178 782 180 910 180 910
Net asset value per share (cents) 308.1 346.6 361.2
Tangible net asset value per share (cents) 299.2 310.0 323.0
Condensed consolidated statement of comprehensive income
Reviewed Reviewed Audited
6 months ended 6 months ended year ended
31 August 2014 31 August 2013 28 February 2014
R'000 R'000 R'000
Continued operations
Revenue 550 038 565 226 1 083 547
Operating profit before depreciation and amortisation
("EBITDA") 32 291 124 253 255 523
Depreciation (82 753) (69 379) (140 156)
Operating (loss)/profit (50 462) 54 874 115 367
Net interest paid (21 756) (16 922) (35 154)
Interest paid (21 756) (17 053) (35 778)
Interest received - 131 624
(Loss)/profit before taxation ("PBT") (72 218) 37 952 80 213
Taxation 25 147 (5 758) (19 043)
(Loss)/profit for the period ("PAT") (47 071) 32 194 61 170
After tax (loss)/profit from discontinued operations (59 308) 1 113 169
(Loss)/profit for the period (106 379) 33 307 61 339
Other comprehensive (loss)/income for the period:
Foreign currency translation reserve (2 335) 2 297 2 632
Total comprehensive (loss)/profit for the period (108 714) 35 604 63 971
(Loss)/profit for the period attributable to:
Equity holders of the company (101 708) 33 360 60 479
Outside shareholders' interests (4 671) (53) 860
(106 379) 33 307 61 339
Total comprehensive (loss)/profit for the period
attributable to:
Equity holders of the company (104 043) 35 657 63 111
Outside shareholders' interests (4 671) (53) 860
(108 714) 35 604 63 971
Reconciliation of headline (loss)/earnings
Reviewed Reviewed Audited
6 months ended 6 months ended year ended
31 August 2014 31 August 2013 28 February 2014
R'000 R'000 R'000
Continued operations
(Loss)/profit for the period attributable to
shareholders of Buildmax (42 400) 32 247 60 310
Adjusted for:
Add back loss/(profit) on disposal of property, plant and
equipment 4 049 3 239 (831)
- Gross 5 623 4 491 (1 171)
- Taxation (1 574) (1 252) 340
Headline (loss)/earnings attributable to ordinary
shareholders (38 351) 35 486 59 479
Discontinued operations
(Loss)/profit for the period attributable to
shareholders of Buildmax (59 308) 1 113 169
Adjusted for:
Add back loss/(profit) on disposal of property, plant and
equipment (1 060) (13) (32)
- Gross (1 472) (18) (45)
- Taxation 412 5 13
Impairment of goodwill and other intangibles 47 064 - -
- Gross 54 824 - -
- Taxation (7 760) - -
Headline (loss)/earnings attributable to ordinary
shareholders (13 304) 1 100 137
Supplementary information
Reviewed Reviewed Audited
6 months ended 6 months ended year ended
31 August 2014 31 August 2013 28 February 2014
R'000 R'000 R'000
Headline (loss)/earnings per share (cents) (28.9) 20.2 32.9
Continued operations (21.5) 19.6 32.8
Discontinued operations (7.4) 0.6 0.1
Basic (loss)/earnings per share (cents) (56.9) 18.4 33.4
Continued operations (23.7) 17.8 33.3
Discontinued operations (33.2) 0.6 0.1
Shares in issue ('000)
At end of the period 178 782 180 910 180 910
Weighted 178 782 180 910 180 910
Note 1: No dilutionary instruments in issue.
Note 2: During the reporting period, 2.128 million shares that were previously issued in terms of the Long Term
Incentive Plan, were transferred to a subsidiary (and accordingly are treated as treasury shares) as a result
of certain performance criteria not having been met.
Condensed consolidated statement of cash flows
Reviewed Reviewed Audited
6 months ended 6 months ended year ended
31 August 2014 31 August 2013 28 February 2014
R'000 R'000 R'000
Operating activities
(Loss)/profit before taxation (143 603) 41 371 81 227
Working capital movement 27 879 (9 847) (1 850)
Impairment of goodwill and intangible assets 54 824 - -
Other non-cash flow items 88 739 91 830 158 845
Net interest paid 22 910 17 431 36 467
Cash generated from operations 50 749 140 785 274 689
Net interest paid in cash (22 910) (17 431) (36 467)
Taxation (paid)/received (16 546) 259 927
Cash generated from operating activities 11 293 123 613 239 149
Investing activities
Purchase of property, plant and equipment
- Expanding operations (42 469) - -
- Maintaining operations (198 155) (155 819) (263 628)
Environmental guarantee investment (569) (245) (578)
Mine stripping asset - (43) (642)
Acquisition of Letamo mining right (21 684) - -
Proceeds on disposal of property plant and equipment 102 370 18 544 85 326
Cash utilised by investing activities (160 507) (137 563) (179 522)
Financing activities
Interest-bearing liabilities raised 232 417 155 472 256 083
Interest-bearing liabilities repaid (159 949) (138 049) (287 249)
Cash flows generated from financing activities 72 468 17 423 (31 166)
Net (decrease)/increase in cash and cash equivalents (76 746) 3 473 28 461
Cash and cash equivalents beginning of the period 94 028 65 567 65 567
Cash and cash equivalents at the end of the period 17 282 69 040 94 028
Condensed consolidated statement of changes in equity
Attribut-
Foreign able to
Share Share currency equity Outside Total
capital based BEE trans- holders share- share-
and payment IFRS2 lation Accumulated of the holders' holders'
premium reserve costs reserve loss company interest interest
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balances as at
29 February
2013 1 994 196 8 815 - - (1 417 154) 585 857 (7 105) 578 752
Share based
payments - 4 366 1 195 - - 5 561 - 5 561
Total
comprehensive
profit for the
period - - - 2 297 33 360 35 657 (53) 35 604
Balances as at
31 August
2013 1 994 196 13 181 1 195 2 297 (1 383 794) 627 075 (7 158) 619 917
Share based
payments - (1 061) - - - (1 061) - (1 061)
Total
comprehensive
profit for the
period - - - 335 27 119 27 454 913 28 367
Balances as
at 28 February
2014 1 994 196 12 120 1 195 2 632 (1 356 675) 653 468 (6 245) 647 223
Share based
payments - 1 347 - - - 1 347 - 1 347
Tota
comprehensive
loss for the
period
Continued
Operations - - - (2 335) (42 400) (44 735) (4 671) (49 406)
Discontinued
Operations - - - - (59 308) (59 308) - (59 308)
Balances as
at 31 August
2014 1 994 196 13 467 1 195 297 (1 458 383) 550 772 (10 916) 539 856
Condensed segmental analysis
Reviewed Reviewed Audited
6 months ended 6 months ended year ended
28 February 2014 31 August 2013 31 August 2014
R'000 R'000 R'000
EXTERNAL REVENUE
Continuing Operations 550 038 565 226 1 083 547
Mining Services - Diesel Power 444 183 488 301 941 072
Mining Services - Equipment sales and rental - - -
Total Mining services 444 183 488 301 941 072
Civils and Earthworks 105 855 76 925 142 475
Discontinued operations 67 311 121 836 190 890
Aggregates and Quarries 67 311 121 836 190 890
617 349 687 062 1 274 437
INTER-SEGMENT REVENUE
Continuing Operations 19 279 8 989 17 905
Mining Services - Diesel Power 10 844 1 680 4 360
Mining Services - Equipment sales and rental 8 435 7 309 13 545
Total Mining services 19 279 8 989 17 905
Civils and Earthworks - - -
Discontinued operations 5 402 12 120 20 017
Aggregates and Quarries 5 402 12 120 20 017
24 681 21 109 37 922
EBITDA
Continuing Operations 32 291 124 253 255 523
Mining Services - Diesel Power 33 521 130 493 260 189
Mining Services - Equipment sales and rental 3 868 3 045 4 659
Total Mining services 37 389 133 538 264 848
Civils and Earthworks 355 (5 221) (6 613)
Corporate Head office (5 453) (4 064) (2 712)
Discontinued operations (9 185) 12 040 14 283
Aggregates and Quarries (9 185) 12 040 14 283
23 106 136 293 269 806
OPERATING (LOSS)/PROFIT BEFORE AMORTISATION
Continuing Operations (50 462) 54 874 115 367
Mining Services - Diesel Power (49 341) 61 504 120 756
Mining Services - Equipment sales and rental 3 381 2 695 4 015
Total Mining services (45 960) 64 199 124 771
Civils and Earthworks 355 (5 221) (6 613)
Corporate Head Office (4 857) (4 104) (2 791)
Discontinued operations (14 784) 6 882 3 566
Aggregates and Quarries (14 784) 6 882 3 566
(65 246) 61 756 118 933
Notes to the reviewed interim financial results for the
period ended 31 august 2014
This interim report should be read in conjunction with the Buildmax group 2014 integrated report which is available
at www.buildmax.co.za.
Approval of the interim financial results
The reviewed interim financial results have been prepared in accordance with International Financial Reporting Standards,
IAS 34: Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee,
and Financial Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings Requirements, and
the Companies Act, 71 of 2008.
The accounting policies used in the preparation of these interim results are consistent with those used in the annual
financial results for the year ended 28 February 2014, which have been prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The reviewed group interim financial results have been prepared on the historical cost basis.
This report was compiled under the supervision of Mr CS Els, Chief Financial Officer CA (SA). These results were reviewed
by Grant Thornton (Jhb) Inc and the unmodified review opinion is available for inspection at the registered office of the company.
The interim financial results have been prepared on a going-concern basis as the directors believe that the company and the group
will continue to be in operation in the foreseeable future.
The interim financial results were approved by the board of directors
on 27 November 2014.
Estimates and contingencies
Management makes estimates and judgements concerning the future with regards to opencast mining contracts, remaining life of quarries,
future rehabilitation costs, provisions, claims, depreciation methods and residual values when estimating the recoverable
amounts of assets.
The resulting estimates and judgements can only approximate the actual results. Estimates and judgements are continually evaluated
and are based on historical experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances.
The group has contingent liabilities in respect of legal claims and contractual guarantees arising in the ordinary course of business.
It is anticipated that no material liabilities will arise from the contingent liabilities other than those provided for.
Assets held for sale and discontinued operations In July 2014, Buildmax Aggregates and Quarries ("BAQ"), and certain of the
subsidiaries of BAQ, entered into a sale of business and assets agreement with Raubex Group and its wholly- owned subsidiary,
Raumix Aggregates ("Raumix"), in terms of which Raumix acquired certain assets of BAQ. In addition, BAQ entered into contract
mining agreements with Raumix on behalf of its subsidiaries Crushco, Alfa, Mystic Blue and Verlesha.
The operating loss of BAQ and its subsidiaries until the date of disposal and the associated assets and liabilities classified
as held for sale are summarised as follows:
After tax (loss)/profit from discontinued operations
Reviewed Reviewed Audited
6 months ended 6 months ended year ended
31 August 2014 31 August 2013 28 February 2014
R'000 R'000 R'000
Revenue 67 311 121 836 190 890
Operating (loss)/profit before depreciation and
amortisation ("EBITDA") (9 185) 12 040 14 283
Depreciation (5 599) (5 158) (10 717)
Operating (loss)/profit before amortisation (14 784) 6 882 3 566
Amortisation of intangible assets (623) (2 954) (1 239)
Operating (loss)/profit (15 407) 3 928 2 327
Impairment of goodwill and intangible assets (54 824) - -
(Loss)/Profit before interest and taxation ("PBIT") (70 231) 3 928 2 327
Net interest paid (1 154) (509) (1 313)
Interest paid (1 378) (661) (1 667)
Interest received 224 152 354
(Loss)/Profit before taxation ("PBT") (71 385) 3 419 1 014
Taxation 12 077 (2 306) (845)
(Loss)/Profit for the period ("PAT") (59 308) 1 113 169
Assets held for sale and discontinued operations
The remeasurement amount of assets and liabilities held for sale are summarised
as follows:
Reviewed
6 months ended
31 August 2014
Assets held for sale R'000
BAQ property plant and equipment sold to Raubex 55 973
Assets held for sale in terms of right of first refusal and put option agreement
concluded with Raubex:
BAQ mining rights 30 000
BAQ properties 8 615
BAQ mine stripping asset and rehabilitation investment 3 764
Total assets held for sale 98 353
Less: Liabilities associated with assets held for sale (14 003)
Net assets held for sale 84 350
Refer to the operational overview.
Directors
Executive Registered office
TP Bantock (CEO) 515 Pretoria Road, Fairleads, Benoni
CS Els (CFO) (Postnet Suite 435, Private Bag X108,
J Mathebula Centurion, 0046)
Independent non-executive Sponsor
directors Questco (Pty) Limited
CJM Wood (Chairman) 2nd Floor, No 1 Montecasino Blvd,
CB Brayshaw Fourways, 2055
MD Lamola (PO Box 98956, Sloane Park, 2152)
MW McCulloch
Auditors
Non-executive directors Grant Thornton (Jhb) Inc
DJ Mack 42 Wierda Road West,
BT Ngcuka Wierda Valley, 2196
G Montgomery
Transfer secretaries
Company secretary Computershare Investor Services (Pty) Ltd
GH Miller 70 Marshall Street
Johannesburg, 2001
(PO Box 61763, Marshalltown, 2107)
www.buildmax.co.za
Date: 28/11/2014 05:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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