Wrap Text
Abridged Audited Financial Statements For The Year Ended 28 February 2017
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")
ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2017
Condensed consolidated statement of financial position
Audited Audited
28 February 2017 29 February 2016
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 359 070 474 866
Deferred taxation 38 035 27 521
397 105 502 387
Current assets
Inventories 11 261 10 351
Trade and other receivables 93 474 140 019
Taxation receivable 5 037 6 387
Bank and cash balances 12 438 47 677
122 210 204 434
Assets classified as held for sale 15 003 13 747
Total assets 534 318 720 568
EQUITY AND LIABILITIES
Share capital and premium 2 007 662 2 007 662
BEE IFRS 2 cost 1 195 1 195
Foreign currency translation reserve 12 493 4 371
Accumulated loss (1 835 717) (1 793 299)
Attributable to owners of the parent 185 633 219 929
Non controlling interest (54 094) (48 043)
Total shareholders' interests 131 539 171 886
Non-current liabilities
Interest-bearing liabilities 90 888 165 643
Capitalised finance leases - 9 777
Deferred taxation 13 102 14 618
103 990 190 038
Current liabilities
Interest-bearing liabilities 88 002 77 118
Capitalised finance leases 12 977 21 320
Trade and other payables 170 080 208 427
Taxation payable 171 1 820
Bank overdrafts 20 957 44 454
292 187 353 139
Liabilities directly associated with assets held for sale 6 602 5 505
Total equity and liabilities 534 318 720 568
Shares in issue at end of year (000) 178 782 178 782
Net asset value per share (cents) 103.8 123.0
Condensed consolidated statement of profit and loss and other comprehensive income
Audited Audited
year ended year ended
28 February 2017 29 February 2016
R'000 R'000
Continuing operations
Revenue 910 462 704 940
Operating profit/(loss) before depreciation and impairment ("EBITDA") 76 170 (9 600)
Depreciation (84 015) (112 094)
Operating loss (7 845) (121 694)
Impairment of property plant and equipment (1 877) (413)
Loss before interest and taxation ("PBIT") (9 722) (122 107)
Net interest paid (33 927) (35 642)
Interest paid (33 931) (35 695)
Interest received 4 53
Loss before taxation ["PBT"] (43 649) (157 749)
Taxation 13 374 6 002
Loss for the year ["PAT"] (30 275) (151 747)
After tax loss from discontinued operations (see note below) (17 994) (97 805)
Loss for the year (48 269) (249 552)
Other comprehensive income for the year:
Foreign currency translation reserve 8 122 3 754
Total comprehensive loss for the year (40 147) (245 798)
Loss for the year attributable to:
Equity holders of the parent (42 218) (224 527)
Non controlling interest (6 051) (25 025)
(48 269) (249 552)
Total comprehensive loss for the year attributable to:
Equity holders of the parent (34 096) (220 773)
Non controlling interest (6 051) (25 025)
(40 147) (245 798)
Reconciliation of headline loss
Audited Audited
year ended year ended
28 February 2017 29 February 2016
R'000 R'000
Continuing operations
Loss for the year attributable to shareholders of Buildmax (25 991) (137 107)
Adjusted for:
(Deduct profit)/Add back loss on disposal of property, plant and equipment (9) 38 790
- Gross (13) 53 875
- Taxation 4 (15 085)
Impairment of property, plant and equipment 1 351 297
- Gross 1 877 413
- Taxation (526) (116)
Headline loss attributable to ordinary shareholders (24 648) (98 020)
Audited Audited
year ended year ended
28 February 2017 29 February 2016
R'000 R'000
Discontinued operations
Loss for the year attributable to shareholders of Buildmax (16 227) (87 420)
Adjusted for:
Add back loss on disposal of property, plant and equipment 4 623 1 923
- Gross 5 926 2 465
- Taxation (1 303) (542)
Impairment of property plant and equipment, goodwill and other intangibles - 33 426
- Gross - 42 854
- Taxation (9 428)
Headline loss attributable to ordinary shareholders (11 604) (52 071)
Supplementary information
Loss per share
Audited Audited
year ended year ended
28 February 2017 29 February 2016
cents cents
Headline loss per share (cents) (20.3) (84.0)
Continuing operations (13.8) (54.8)
Discontinued operations (6.5) (29.1)
Basic loss per share (cents) (23.6) (125.6)
Continuing operations (14.5) (76.7)
Discontinued operations (9.1) (48.9)
Shares in issue ('000)
- at end of the year 178 782 178 782
- weighted 178 782 178 782
Condensed consolidated statement of cash flows
Audited Audited
year ended year ended
28 February 2017 29 February 2016
R'000 R'000
Operating activities
Loss before taxation (62 105) (247 600)
Working capital movement (1 057) 31 157
Impairments of property, plant & equipment, goodwill and intangible assets 1 877 43 267
Other non-cash flow items 115 663 187 805
Net interest paid 37 124 40 349
Cash generated by operations 91 503 54 978
Net interest paid in cash (37 124) (40 349)
Dividends paid (200) (200)
Taxation received/(paid) 1 507 (1 857)
Cash generated by operating activities 55 686 12 572
Investing activities
Purchase of property, plant and equipment
- Maintaining operations (16 043) (53 796)
Environmental guarantee investment ( 161) (825)
Proceeds on disposal of held for sale mining rights and related fixed properties - 37 000
Proceeds on disposal of property plant and equipment 30 767 107 389
Net cash generated by investing activities 14 563 89 768
Financing activities
Interest-bearing liabilities raised 402 41 712
Interest-bearing liabilities repaid (82 393) (87 943)
Net cash utilised by financing activities (81 991) (46 231)
Net (decrease)/increase in cash and cash equivalents (11 742) 56 109
Cash and cash equivalents at the beginning of the year 3 223 (52 886)
Cash and cash equivalents at the end of the year (8 519) 3 223
Condensed consolidated statement of changes in equity
Share capital and Share based BEE IFRS2 Foreign currency Accumulated
premium payment reserve costs translation reserve loss
R'000 R'000 R'000 R'000 R'000
Balances as at 28 February 2015 1 994 196 13 466 1 195 617 (1 568 572)
Total comprehensive loss for the year
Continuing Operations (137 107)
Discontinued Operations 3 754 (87 420)
Dividends paid by Diesel Power Group
Holdings to its empowerment partner (200)
Transfer from share based payment reserve
to share premium 13 466 (13 466)
Balances as at 29 February 2016 2 007 662 - 1 195 4 371 (1 793 299)
Total comprehensive loss for the year
Continuing Operations (25 991)
Discontinued Operations 8 122 (16 227)
Dividends paid by Diesel Power Group
Holdings to its empowerment partner (200)
Balances as at 28 February 2017 2 007 662 - 1 195 12 493 (1 835 717)
Attributable to Non- Total
owners of the controlling shareholders'
parent interest interest
R'000 R'000 R'000
Balances as at 28 February 2015 440 902 (23 018) 417 884
Total comprehensive loss for the year
Continuing Operations (137 107) (14 640) (151 747)
Discontinued Operations (83 666) (10 385) (94 051)
Dividends paid by Diesel Power Group
Holdings to its empowerment partner (200) (200)
Balances as at 29 February 2016 219 929 (48 043) 171 886
Total comprehensive loss for the year
Continuing Operations (25 991) (4 284) (30 275)
Discontinued Operations (8 105) (1 767) (9 872)
Dividends paid by Diesel Power Group
Holdings to its empowerment partner (200) (200)
Balances as at 28 February 2017 185 633 (54 094) 131 539
Condensed segmental analysis
Audited Audited
year ended year ended
28 February 2017 29 February 2016
R'000 R'000
EXTERNAL REVENUE
Continuing Operations 910 462 704 940
Mining Services - Diesel Power 910 462 704 940
Mining Services - Equipment sales and rental - -
Discontinued operations 14 735 239 675
Africa open cast mining operations (Congo and Botswana) 2 984 121 067
Civils and Earthworks 7 749 115 564
Aggregates and Quarries 4 002 3 044
925 197 944 615
INTER-SEGMENT REVENUE
Continuing Operations 12 347 13 868
Mining Services - Equipment sales and rental 12 347 13 868
Discontinued operations - -
Africa open cast mining operations (Congo and Botswana) 14 797 -
Audited consolidated financial results for the year ended 28 February 2017
12 347 13 868
EBITDA
Continuing Operations 76 170 (9 600)
Mining Services - Diesel Power 93 608 (10 678)
Mining Services - Equipment sales and rental 5 245 4 397
Total Mining services 98 853 (6 281)
Corporate Head office (22 683) (3 319)
Discontinued operations (5 991) (27 319)
Africa open cast mining operations (Congo and Botswana) (5 946) (33 984)
Civils and Earthworks (15) 9 240
Aggregates and Quarries (30) (2 575)
70 179 (36 919)
OPERATING LOSS BEFORE IMPAIRMENTS
Continuing Operations (7 845) (121 694)
Mining Services - Diesel Power 10 755 (121 247)
Mining Services - Equipment sales and rental 4 162 2 989
Total Mining services 14 917 (118 258)
Corporate Head office (22 762) (3 436)
Discontinued operations (15 258) (42 290)
Africa open cast mining operations (Congo and Botswana) (15 213) (48 955)
Civils and Earthworks (15) 9 240
Aggregates and Quarries (30) (2 575)
(23 103) (163 984)
After tax loss from discontinued operations:
Audited Audited
year ended year ended
28 February 2017 29 February 2016
R'000 R'000
Revenue 14 735 239 675
Operating loss before depreciation, and impairment ("EBITDA") (5 991) (27 319)
Depreciation (9 267) (14 971)
Operating loss before impairment (15 258) (42 290)
Impairment of property plant and equipment, goodwill and intangible assets - (42 854)
Loss before interest and taxation ["PBIT"] (15 258) (85 144)
Net interest paid (3 198) (4 707)
Interest paid (3 314) (5 208)
Interest received 116 501
Loss before taxation ["PBT"] (18 456) (89 851)
Taxation 462 (7 954)
Loss for the year ["PAT"] (17 994) (97 805)
Year-end results commentary 28 February 2017
Introduction
Although since the end of 2016 the outlook for the global mining industry has improved with
increases in both the demand for and prices of commodities, during most of Buildmax's financial
year this was not the case. Over the immediate past the global mining industry has been in crisis,
taking a heavy toll particularly in bulk commodities like iron ore, manganese chrome copper and
coal. As a result extreme measures like head count cuts were required to survive and several
companies were placed in business rescue or liquidation and capital expenditure was shelved.
Being mainly involved in coal Buildmax was adversely affected by these unfavourable conditions.
The group responded by reducing overheads, switching to leasing a portion of its assets, closing
those sections of its business that could no longer obtain profitable work and cancelling loss making
contracts. This led to an improved financial performance, summarised as follows:
- net asset value reduced to R185.6 million from R219.9 million because of the comprehensive
loss (attributable to Buildmax shareholders) of R34.1 million
- the company reduced net interest bearing debt (including capitalised finance leases) to R200.4
million, a reduction of R70.2 million
- although net cash decreased by R11.7 million, net working capital improved by R7.3 million and
cash flow generated by operating activities increased by R43.1 million to R55.7 million
- revenue decreased from R944.6 million to R925.2 million in line with the group's strategy to
terminate loss making contracts
- asset turnover improved by 29.5% from 2.0 times to 2.6 times in line with the group's strategy
to adopt a flexible business model
- headline loss per share decreased from 84.0 cents to 20.3 cents per share
- basic loss per share decreased from 125.6 cents to 23.6 cents per share.
Dividend
In terms of the subscription and shareholders' agreement entered between Diesel Power Group
Holdings Proprietary Limited and Tylox Proprietary Limited, an ordinary dividend in the amount of R200,000 was
declared by Diesel Power Group Holdings Proprietary Limited to its empowerment shareholders.
There was no dividend declared by Buildmax.
Outlook
The South African economic conditions will probably remain challenging and competitive, we
however believe that mining contractors that operate safely, efficiently and cost-effectively will
always be in demand. Buildmax will continue to seek opportunities, both in South Africa and
internationally.
Notes to the audited abridged financial results
The summarised abridged financial statements are prepared in accordance with the JSE Limited
Listings Requirements for abridged reports, and the requirements of the Companies Act,
Act 71 of 2008, as amended ("the Companies Act") applicable to summary financial statements.
These summarised abridged financial statements have been prepared in accordance with
International Financial Reporting Standards, IAS 34, 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 Limited Listings Requirements and the Companies Act.
The accounting policies used in the preparation of these annual results are consistent with those
used in the annual financial results for the year ended 29 February 2016.
The audited summarised abridged financial statements have been prepared on the historical cost basis and
this report was compiled under the supervision of Mr CS Els, Chief Financial Officer, CA (SA).
This abridged report is extracted from audited information, but is not itself audited. The directors take
full responsibility for the preparation of the abridged report and the financial information has been
correctly extracted from the underlying annual financial statements. Shareholders are advised that
the 2017 Annual Financial Statements are available for downloading on the Company's website
www.buildmax.co.za from 31 May 2017 or can be requested from the company secretary Ms Gillian
Miller at enquiries@buildmax.co.za free of charge.
The unmodified audit report, issued by Grant Thornton Johannesburg Partnership has been done
so based on the underlying annual financial statements from which these summarised abridged
financial results have been derived and are available for inspection at the registered office of the
company, together with the financial statements identified in the auditor's report.
Notice of annual general meeting
Notice is hereby given to shareholders that the annual general meeting will be held at 09:00 on
Friday, 30 June 2017 at The Country Club Johannesburg, 1 Napier Road, Auckland Park,
Johannesburg, to deal with such business as may lawfully be dealt with at the annual general
meeting to consider, and, if deemed fit, to approve, with or without modification, the resolutions set
out in the Notice of Annual General Meeting which was dispersed to Shareholders on 31 May 2017.
The board of directors of Buildmax has determined that, in terms of section 62(3)(a), as read with
section 59 of the Companies Act, the record date for the purposes of determining which
shareholders of the company are entitled to participate in and vote at the annual general meeting
is Friday, 23 June 2017. Accordingly, the last day to trade Buildmax shares in order to be recorded
in the register to be entitled to vote will be Tuesday, 20 June 2017.
Changes to the Board
Mr Graeme Montgomery stepped down as the chief executive officer and executive director of the
company effective 1 March 2017 but continues as a non-executive director of the Company.
Mr Terry Bantock and Mr Dennis Mack stepped down as non-executive directors of the board
effective 28 February 2017 with Mr Malcolm McCulloch stepping down effective 31 May 2017.
Mr Jackie Mathebula stepped down as an executive director of Buildmax with effect from 31 March
2017 and as a non-executive with effect from 31 May 2017.
Mr Justin Colling was appointed as chief executive officer and executive director of the company
effective 3 April 2017.
Date: 31 May 2017
Directors
*(#)CJM Wood (chairman)
*(#)CB Brayshaw
*(#)^MW McCulloch
*G Montgomery
*(#)MD Lamola
*BT Ngcuka
*^^TP Bantock
*^^DJ Mack
*^J Mathebula
J Colling (chief executive officer)
CS Els (financial director)
*Non-executive
(#)Independent
^^Resigned with effect from 28 February 2017
^Resigned with effect from 31 May 2017
Company secretary
GH Miller
Registered office of Buildmax
Reef Insurance Brokers Building
2 Mowbray Avenue
Benoni
1500
(PO Box 11962, Rynfield, 1514)
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Auditors
Grant Thornton Johannesburg Partnership
Transfer secretaries
Computershare Investor Services Proprietary Limited
Website
www.buildmax.co.za
Date: 31/05/2017 11:48:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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