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Unaudited interim results for the six months ended 31 August 2015, 2014 and 2013
BRIKOR LIMITED
Incorporated in the Republic of South Africa
Registration number: 1998/013247/06
JSE code: BIK
ISIN: ZAE000101945
(“Brikor” or “the group” or “the company”)
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2015 AND 31 AUGUST 2014
AND 31 AUGUST 2013
PREPARED BY
The unaudited interim results for the six months ended 31 August 2015, 31 August 2014 and 31 August
2013 ('interim financial results' or 'results') were prepared by Laura Craig CA(SA), group financial
manager, under the supervision of André Hanekom, financial director.
HIGHLIGHTS
When compared to the six months ended 31 August 2013:
– Revenue of R 171.5 million increased by 10.4%
– Earnings per share of 4.4 cents increased by 37.5%
– Operating profit before interest and taxation of R 32.6 million increased by 3.6%
– Cash generated from operations of R 37.2 million increased by 4.7%
– Cash generated from operating activities of R 34.7 million increased by 28.2%
COMMENTARY
Overview
Brikor is a diverse manufacturer and supplier of building and construction materials across a broad
spectrum of the market from low-cost housing, residential to commercial, industrial, civil engineering
and infrastructure projects. The group operates in three segments, namely bricks, aggregates and coal
(through its subsidiary, Ilangabi Investments 12 (Pty) Ltd).
The group’s overall financial indicators improved substantially in a competitive trading environment
through effective cost management initiatives and a concerted effort on sustainable working capital
management. The continued focus on the group’s core operations was maintained.
Directorate
Please refer to the 2015 Annual Report of the company which was published on 25 July 2016, for detail
of all changes to the board. The report is available on the company's website. No further changes have
been made to the board subsequent to the publication date of the 2015 Annual report
On behalf of the Board
Garett Parkin
Chief executive officer
Andre J Hanekom
Financial director
9 September 2016
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 Aug 2015 and 31 Aug 2014 and 31 Aug 2013
Restated
Unaudited Unaudited Unaudited Audited
6 months 6 months 6 months 12months
ended ended ended ended
31 Aug 2015 31 Aug 2014 31 Aug 2013 28 Feb 2015
Note R'000 R'000 R'000 R'000
CONTINUING OPERATIONS
Revenue 171 480 177 610 155 392 318 229
Cost of sales (122 339) (126 362) (107 792) (241 695)
Gross profit 49 141 51 248 47 600 76 534
Other income 4 819 1 252 830 3 479
Administrative expenses (14 421) (14 773) (13 075) (30 714)
Distribution expenses (2 100) (1 778) (1 892) (3 603)
Other expenses (4 792) (9 386) (1 947) (13 251)
Impairment losses - - - (7 113)
Operating Profit before
interest and taxation 32 647 26 563 31 517 25 332
Finance income 2 628 494 830 1 657
Finance costs (4 321) (7 080) (7 264) (15 384)
Profit before taxation 30 954 19 977 25 083 11 605
Taxation (3 204) (3 792) (4 132) (2 129)
Profit from continuing
operations 27 750 16 185 20 951 9 476
DISCONTINUED OPERATIONS
(Loss) on discontinued
Operations 3 - - (878) -
Profit on disposal of
discontinued operations 3 - - 41 -
Net Profit 27 750 16 185 20 115 9 476
Total comprehensive income
attributable to owners of
the company 27 750 16 185 20 115 9 476
EARNINGS PER SHARE
Restated
Unaudited Unaudited Unaudited Audited
6 months 6 months 6 months 12months
ended ended ended ended
31 Aug 2015 31 Aug 2014 31 Aug 2013 28 Feb 2015
Note (in cents) (in cents) (in cents) (in cents)
Earnings per share
Basic 4.41 2.57 3.20 1.50
-Continuing operations 4.41 2.57 3.33 1.50
-Discontinued operations - - (0.13) -
Diluted 4.41 2.57 3.20 1.50
-Continuing operations 4.41 2.57 3.33 1.50
-Discontinued operations - - (0.13) -
Headline earnings/(loss) per share
Basic 4.54 2.60 3.12 2.70
-Continuing operations 4.54 2.60 3.26 2.70
-Discontinued operations - - (0.14) -
Diluted 4.54 2.60 3.12 2.70
-Continuing operations 4.54 2.60 3.26 2.70
-Discontinued operations - - (0.14) -
The calculations for earnings/(loss) per share attributable to the ordinary equity holders are based on
the following:
Reconciliation between basic earnings/(loss) and headline earnings/(loss) as well as diluted earnings
Continuing Discontinued Total
operations operations
R'000 R'000 R'000
Six months ended 31 August 2015
Basic and diluted profit 27 748 - 27 748
Loss on disposal of property,
plant and equipment 806 - 806
Headline and diluted headline profit 28 554 - 28 554
Six months ended 31 August 2014
Basic and diluted profit 16 184 - 16 184
Loss on disposal of property,
plant and equipment 207 - 207
Headline and diluted headline profit 16 391 - 16 391
Six months ended 31 August 2013
Basic and diluted profit/(loss) 20 951 (837) 20 115
Profit on disposal of property,
plant and equipment (439) (41) (480)
Headline and diluted headline profit 20 512 (878) 19 635
Twelve months ended 28 February 2015
Basic and diluted profit 9 476 - 9 476
Reversal on impairment of assets 7 113 - 7 113
Loss on disposal of property,
plant and equipment 268 - 268
Headline and diluted headline profit 16 857 - 16 857
NUMBER OF SHARES
Restated
Unaudited Unaudited Unaudited Audited
6 months 6 months 6 months 12months
ended ended ended ended
31 Aug 2015 31 Aug 2014 31 Aug 2013 28 Feb 2015
Note R'000 R'000 R'000 R'000
The weighted average
number of ordinary
shares outstanding 629 342 629 342 629 342 629 342
Share Purchase trust - - - -
Treasury shares* - - - -
Diluted weighted average
number of shares 629 342 629 342 629 342 629 342
Weighted average
number of shares 629 342 629 342 629 342 629 342
* The dilutive effect of the treasury shares have not been taken into account as a result of the non-
tradability of the shares and their low market value during the periods under review
CONDENSED STATEMENT OF FINANCIAL POSITION
as at 31 Aug 2015 and 31 Aug 2014 and 31 Aug 2013
Restated
Unaudited Unaudited Unaudited Audited
31 Aug 2015 31 Aug 2014 31 Aug 2013 28 Feb 2015
Note R'000 R'000 R'000 R'000
ASSETS
Non-current assets 140 918 139 338 174 521 140 332
Property, plant and
equipment 113 447 113 616 131 290 114 393
Intangible assets 12 989 14 034 14 791 13 656
Deferred tax asset 897 78 - -
Other financial assets 13 585 11 610 28 440 12 283
Current assets 97 671 148 302 116 144 169 770
Inventories 40 516 44 558 48 607 38 305
Trade and other
receivables 27 798 48 666 49 229 36 974
Cash and cash equivalents 29 357 55 078 18 308 94 491
TOTAL ASSETS 238 589 287 640 290 665 310 102
EQUITY AND LIABILITIES
Equity attributable to
owners of the company 41 757 20 716 47 805 14 007
Stated capital 228 242 228 242 228 242 228 242
Accumulated Loss (186 485) (207 526) (180 438) (214 235)
Non-current liabilities 99 308 70 793 58 804 85 860
Borrowings 11 150 1 297 3 008 8 884
Shareholder loans 42 651 33 737 31 408 35 134
Provisions 45 507 35 759 21 771 41 597
Deferred tax liability 2 618 245
Current liabilities 97 524 196 131 184 056 210 235
Borrowings 8 455 102 985 98 853 109 004
Trade and other payables 67 763 74 354 67 519 83 475
Taxation 21 306 18 792 11 388 17 756
Bank overdraft - - 6 296 -
TOTAL EQUITY AND LIABILITIES 238 589 287 640 290 665 310 102
ASSET VALUE PER SHARE
Restated
Unaudited Unaudited Unaudited Audited
6 months 6 months 6 months 12months
ended ended ended ended
31 Aug 2015 31 Aug 2014 31 Aug 2013 28 Feb 2015
Note (in cents) (in cents) (in cents) (in cents)
Net asset value per share 6.6 3.3 7.6 2.2
Net tangible asset value per share 4.6 1.1 5.2 0.1
CONDENSED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 Aug 2015 and 31 Aug 2014 and 31 Aug 2013
Restated
Unaudited Unaudited Unaudited Audited
6 months 6 months 6 months 12months
ended ended ended ended
31 Aug 2015 31 Aug 2014 31 Aug 2013 28 Feb 2015
R'000 R'000 R'000 R'000
Stated capital 244 142 244 142 244 142 244 142
Treasury shares (15 900) (15 900) (15 900) (15 900)
Accumulated Loss
beginning of period (214 235) (223 711) (200 551) (223 711)
Profit for the period 27 750 16 185 20 115 9 476
Total equity 41 757 20 716 47 806 14 007
CONDENSED STATEMENT OF CASH FLOWS
for the six months ended 31 Aug 2015 and 31 Aug 2014 and 31 Aug 2013
Restated
Unaudited Unaudited Unaudited Audited
6 months 6 months 6 months 12months
ended ended ended ended
31 Aug 2015 31 Aug 2014 31 Aug 2013 28 Feb 2015
R'000 R'000 R'000 R'000
Cash generated from
operations 37 225 40 856 35 565 83 536
Finance income 2 628 494 830 1 657
Finance costs (3 958) (6 739) (6 902) (11 668)
Tax paid (1 159) - (2 400) -
Cash flows from
operating activities 34 736 34 611 27 093 73 525
-Continuing operations 34 736 34 611 27 971 73 525
-Discontinued operations - - (878) -
Additions to property,
plant and equipment (11 017) (3 066) (11 570) (17 054)
Proceeds on disposal of
property, plant and
equipment 3 214 543 - 701
Proceeds on disposal of business - - 15 000 -
financial assets * (1 303) (2 103) (3 161) (2 775)
Cash flows from investing activities (9 106) (4 626) 269 (19 128)
-Continuing operations (9 106) (4 626) (14 731) (19 128)
-Discontinued operations - - 15 000 -
Borrowings raised 16 860 5 160 8 060 21 326
Borrowings repaid (107 624) (1 110) (12 051) (2 277)
Cash flows from financing activities (90 764) 4 050 (3 991) 19 049
-Continuing operations (90 764) 4 050 (3 991) 19 049
-Discontinued operations - - - -
Net (decrease)/increase in
cash and cash equivalents (65 134) 34 035 23 371 73 446
Cash and cash equivalents at
beginning of period 94 491 21 045 (11 359) 21 045
Cash and cash equivalents
at end of period 29 357 55 080 12 012 94 491
* Including short-term portions.
SEGMENT REPORT
for the six months ended 31 Aug 2015 and 31 Aug 2014 and 31 Aug 2013
Aggre-
Bricks Coal gates Other * Total
R'000 R'000 R'000 R'000 R'000
Six months ended
31 August 2015
Total revenue 89 638 63 939 21 267 - 174 844
Intercompany
revenue - (3 364) - - (3 364)
Reportable segment
revenue 89 638 60 575 21 267 - 171 480
Gross profit 31 929 15 498 1 714 - 49 141
Other income 2 455 1 605 759 - 4 819
Depreciation and
amortisation
included
in cost of sales and
operating
expenditure (1 820) (5 474) (1 313) - (8 607)
Operating profit
before interest
and taxation 22 680 9 527 440 - 32 645
Segment assets 68 515 67 483 72 338 30 253 238 589
Segment liabilities (48 582) (73 068) (11 225) (63 957) (196 832)
Total Segment
assets and liabilities 19 933 (5 585) 61 113 (33 704) 41 757
*Other segment relates to
non segment specific cash and liabilities
Aggre-
Bricks Coal gates Other * Total
R'000 R'000 R'000 R'000 R'000
Six months ended
31 August 2014
Total revenue 76 272 73 038 30 758 - 180 068
Intercompany
revenue - (2 458) - - (2 458)
Reportable
segment revenue 76 272 70 580 30 758 - 177 610
Gross profit 28 079 18 295 4 874 - 51 248
Other income 391 584 277 - 1 252
Depreciation and
amortisation
included in cost of
sales and operating
expenditure (1 725) (2 945) (1 487) - (6 157)
Operating profit
before interest and
taxation 9 591 14 379 2 592 - 26 562
Segment assets 86 621 67 499 78 363 55 157 287 640
Segment liabilities (57 943) (44 749) (11 469) (152 763) (266 924)
Total Segment assets
and liabilities 28 678 22 750 66 894 (97 606) 20 716
*Other segment relates to
non segment specific cash and liabilities
Aggre-
Bricks Coal gates Other * Total
R'000 R'000 R'000 R'000 R'000
Restated Six months ended
31 August 2013
Total revenue 89 056 49 892 21 309 - 160 257
Intercompany
revenue - (4 865) - - (4 865)
Reportable segment
revenue 89 056 45 027 21 309 - 155 392
Gross profit 26 115 18 106 3 379 - 47 600
Other income 815 - 15 - 830
Depreciation and
amortisation included
in cost of sales
and operating
expenditure (1 971) (1 176) (1 440) - (4 587)
Operating profit
before interest
and taxation 16 418 14 330 769 - 31 517
Segment assets 149 937 53 604 75 113 12 011 290 665
Segment liabilities (68 540) (30 523) (7 556) (136 242) (242 860)
Total Segment assets
and liabilities 81 397 23 081 67 557 (124 230) 47 805
*Other segment relates to
non segment specific cash and liabilities
Aggre-
Bricks Coal gates Other * Total
R'000 R'000 R'000 R'000 R'000
Twelve months ended
28 February 2015
Total revenue 151 468 112 238 58 917 - 322 623
Intercompany
revenue - (4 394) - - (4 394)
Reportable segment
revenue 151 468 107 844 58 917 - 318 229
Gross profit 54 367 12 557 9 610 - 76 534
Other income 2 586 326 567 - 3 479
Depreciation and
Amortization
included in cost
of sales and operating
expenditure 6 074 3 401 2 985 - 12 460
Operating profit before
interest and taxation 7 283 16 969 1 080 - 25 332
Segment assets 74 672 68 791 72 148 94 491 310 102
Segment liabilities (70 121) (58 035) (11 248) (156 691) (296 095)
Total Segment assets
and liabilities 4 551 10 756 60 900 (62 200) 14 007
*Other segment relates to
non segment specific cash and liabilities
Factors used to identify segments are based on geographical location and divisional structuring; this is
also how the group reports financial results to the chief operating decision-maker on a monthly basis.
The accounting policies of the reportable segments are the same as the group’s accounting policies
described in note 1. Segment profit represents the profit earned by each segment without allocation of
finance costs and income tax expense. This is the measure reported to the chief operating decision-
maker for the purposes of assessment of segment performance.
Revenue reported already relates to external customers only and no inter-segment sales take place. No
single customer exists upon which the group is significantly dependent on for revenue and revenue is
derived solely from South African customers.
NOTES TO THE INTERIM RESULTS
for the six months ended 31 Aug 2015 and 31 Aug 2014 and 31 Aug 2013
Note 1 - Accounting policies
The interim results are prepared in accordance with the requirements of the JSE Listings Requirements
for interim reports and the requirements of the Companies Act 71 of 2008 of South Africa. The Listings
Requirements require provisional reports to be prepared in accordance with the framework concepts
and the measurement and recognition requirements of International Financial Reporting Standards
(IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum,
contain the information required by IAS 34 Interim Financial Reporting.
The accounting policies applied are consistent with those applied in the annual financial statements for
the year ended 28 February 2015 and are in terms of IFRS as issued by the International Accounting
Standards Board.
The interim results have been prepared on the historic cost convention, except for certain financial
instruments, which are stated at fair value. The results are presented in Rand rounded to the nearest
thousand (R'000).
Note 2 - Subsequent events after balance sheet date
Please refer to the 2015 Annual Report of the company which was published on 25 July 2016, for detail
of all subsequent events after balance sheet date, there have been no further events since to report on.
Note 3 – Non-current assets classified as held for sale and discontinued operations
Non-current assets classified as held for sale and discontinued operations for the 6 months ending 31
August 2013
On 10 October 2011 a decision was taken by the board to dispose of the operations in Olifantsfontein.
On 14 August 2012 Brikor entered into an agreement for the sale of the Olifantsfontein fixed property
for R15,0 million. As at 28 February 2013 the transfer of the fixed property was still at the deeds office
and accordingly this sale had not yet been recorded, however in July 2013 final transfer took place and
the sale was accounted for in the 2013 August interim results.
Note 4 - Restatement of the results for the 6 months ended 31 August 2013
We refer investors to the restatement announcement released on 7 September 2016. Subsequent to the
restatement announcement no changes have been made to the 31 August 3013 numbers.
Note 5 –
Going concern
The directors have prepared their budgets and cash flow forecast for the 2017 financial year based on
reasonable and supportable assumptions.
The cash flow forecast and current management results indicate that the group will operate as a going
concern for the foreseeable future.
DATE OF PUBLICATION OF THIS REPORT
9 September 2016
Garnett Parkin
Chief executive officer
André Hanekom
Financial director
Nigel
9 September 2016
Directors:
Ina McDonald (chairman)*, Peter Moyanga (lead independent director)#, Garnett Parkin (chief executive
officer), André Hanekom (financial director), Limpho Hani#, Collen Madolo#, AP van der Merwe*
* Non-executive
# Independent non-executive
Registered address: 1 Marievale Road, Vorsterskroon, Nigel 1490
Postal address: PO Box 884, Nigel 1490
Telephone: 011 739 9000
Facsimile: 011 739 9021
Company secretary: CIS Company Secretaries (Pty) Ltd
Transfer secretaries: Computershare Investor Services (Pty) Ltd
Auditors: KPMG Inc.
Designated Adviser: Exchange Sponsors (2008) (Pty) Ltd
These results and an overview of Brikor are available at www.brikor.co.za.
Date: 09/09/2016 03:39:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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