BRIKOR LIMITED - Financial results for the six months ended 31 August 2020 Short-form announcement

Financial results for the six months ended 31 August 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 six months ended 31 August 2020 –
Short-form announcement

FINANCIAL HIGHLIGHTS



                  31 August 2020     31 August 2019     % change
                  R’m                R’m
Revenue           127,8              166,1              (23.1)
EBITDA            5,7                23,1               (75,3)
EPS (cps)         (0,3)              1,8                (116.7)
HPS (cps)         (0,2)              1,5                (113.3)
NAV (cps)         10,6               12,5               (15,2)
NTAV (cps)        5,5                7,8                (29,5)

Note: No dividends have been declared for the six months ended 31 August
2020 or 31 August 2019.

Revenue decreased to R127,8 million (August 2019: R166,1 million) with
the gross profit percentage decreasing to 20,4% (August 2019:
26,6% and February 2020: 21,4%).

Administrative, distribution and other expenses decreased to R27,2
million (August 2019: R28,8 million) mainly attributable to less spend on
labour, consulting fees and audit fees amounting to R1,2 million.
Training cost also decreased by R0,9 million as a result of the lockdown
period and related restrictions.

The Group realised an operating profit before interest and taxation of
R1,4 million (August 2019: R19,1 million) for the six months ended 31
August 2020. The Group ended the financial period with an attributable
loss of R1,7 million (August 2019: profit of R11,4 million), resulting in
a loss per share of 0,3 cents
(August 2019: earnings per share 1,8 cents) and basic headline loss per
share of 0,2 cents (August 2019: basic headline earnings per share 1,5
cents). The decrease was directly as a result of the impact of the COVID-
19 pandemic, which resulted in no sales in the Bricks segment during
April 2020 and limited sales during May 2020.

Cash and cash equivalents (net of bank overdraft), however, increased to
R18,3 million (February 2020: R4,0 million). The increase was mainly
attributable to the Group having sufficient stock available at the time
when the Group was able to return to operations on 1 May 2020. Management
took the decision to phase in production which resulted in savings on
variable costs, specifically during levels 5 and 4 of the lockdown
period.

Bricks segment
Revenue derived from the Bricks segment decreased by 34,2% to R58,7
million (August 2019: R89,1 million) whilst the gross profit percentage
decreased to 14,8% (August 2020: 18,3% and February 2020: 16,2%).

The Bricks segment generated no sales during April 2020 and was able to
generate limited sales in May 2020 from customers in essential services
in the construction sector. Sales returned to pre-lockdown levels during
July and August 2020. The decrease in gross profit percentages was mainly
due to lower average selling prices during May and June 2020.

Coal segment
Revenue derived from the Coal segment decreased by only 10,2% to R69,1
million (August 2019: R76,9 million) mainly due to the Coal
segment being allowed to operate at 50% capacity during the initial
lockdown period and at 100% as from 1 May 2020. The gross profit
percentage decreased to 25,2% (August 2019: 36,2% and February 2020:
27,7%) due to the Coal segment only being allowed to sell unwashed
product during the initial lockdown period. This resulted in lower
average selling prices compared to the previous reporting periods and
contributed to the decrease in the gross profit percentage.

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 Wednesday, 21 October 2020, via the JSE link and also
available on the Company’s website at http://brikor.co.za/Pages/Investor-
Relations.asp.

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/2020/jse/isse/bik/inter2020.pdf

21 October 2020
Nigel

Designated adviser
Exchange Sponsors

Date: 21-10-2020 10:00:00
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