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Financial results for the year ended 28 February 2022 – 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 YEAR ENDED 28 FEBRUARY 2022 – SHORT-FORM
ANNOUNCEMENT
FINANCIAL HIGHLIGHTS
28 Feb 28 Feb
2022 2021 %
R’m R’m change
Revenue 272,7 257,9 5,7
EBITDA 10,3 28,6 -64
Basic earnings per share (cents) 0,3 1,9 -84,2
Headline earnings per share (cents) 1,1 2,1 -47,6
Net asset value per share (cents) 13,7 12,9 6,2
Net tangible asset value per share (cents) 10,2 7,9 29,1
Note: No dividends have been declared for the year ended
28 February 2022 or 28 February 2021.
FINANCIAL OVERVIEW
Revenue increased to R272,7 million (2021: R257,9 million) for the
reporting period, with the Group realising a loss before earnings
from its associate of R3,2 million (2021: profit of R12,0
million). The investment in associate contributed positive returns
of R6,0 million (2021: Rnil) to the profit for the reporting
period. The profit for the previous financial year of R12,0
million included a reversal of the environmental rehabilitation
provision of R8,0 million due to a section 43 closure certificate
which was received in respect of one of the Group’s rehabilitation
sites, which should be taken into account when comparing year-on-
year profits.
Revenue in the Bricks segment increased significantly by 34,6% to
R195,1 million (2021: R144,9 million). The Bricks segment
performed exceptionally during the reporting period, with revenue
being the highest when compared to the previous five financial
years. The increased revenue is mainly due to an increase in DIY
projects, additions and alterations as well as an increase in the
informal building sector. Adequate planning, sufficient inventory
levels and efficiencies in the production process have also
contributed to the exceptional performance. The increase in
revenue should, however, be evaluated based on the relative depths
to which the industry plunged during 2020 as a result of the
COVID-19 pandemic. The COVID-19 pandemic had a direct impact on
the Bricks segment during the 2021 financial year with no sales in
the Bricks segment during April 2020 and limited sales during May
2020.
Revenue in the Coal segment decreased by 31,3% to R77,6 million
(2021: R113 million). The Coal segment experienced the aftermath
of the COVID-19 pandemic during the first quarter of the 2021
calendar year, with significant pressure on sales prices. The
export market is vital to sustain balance within the coal industry
and the oversupply of coal products in the local markets added
additional pressure on sales prices as well as demand. During
April 2021, product sales, mostly supplied to the export market,
slowed down significantly due to unreliable infrastructure as well
as lootings in parts of the country during June/July 2021. Whilst
the demand for local coal increased and sales prices stabilised
during the last quarter of the year, the mine experienced
excessive rainfall which had a direct impact on production and
availability of saleable coal. The rainfall for the last quarter
of the year exceeded normal annual rainfall as well as rainfall
during the previous five years. Revenue for the Coal segment was
at its lowest in comparison to the previous five financial years.
The Group realised an operating loss before interest, taxation and
earnings from associate of R0,3 million (2021: operating profit
before interest and taxation of R21,0 million). The Bricks segment
realised an operating profit before interest and taxation R12,4
million (2021: R3,0 million), whilst the Coal segment realised an
operating loss before interest and taxation of R12,7 million
(2021: operating profit before interest and taxation of R18,0
million.
The increase in administrative and other expenditure, compared to
the previous financial year, is in line with inflation. Other
expenses decreased significantly as a result of savings in
supplier development cost, staff training and legal fees in
comparison to the prior year.
OUTLOOK
Given the performance of the Coal segment during the reporting
period, the directors are pleased to report that the Coal segment
has shown significant improvement during April and May 2022. Sales
in the Coal segment showed an upward trend in comparison to the
2022 reporting period and sales orders are increasing on a daily
basis. A core focus during the past three months has been to
ensure that sufficient coal stock is available to meet sales
demand. The Bricks segment is still performing exceptionally and
the outlook for the year remains positive.
The Board of Directors remains confident about the potential which
can be unlocked from the Group in order to create value for
stakeholders and capitalise on synergies between various entities
within the Group.
A priority during the year ahead will be to expand on the
production capacity of the Group’s Coal segment, through its newly
acquired mining right, and to focus on creating positive returns
from all segments within the Group.
Any forward-looking statements have neither been reviewed nor
reported on by the Group’s auditors, Nexia SAB&T.
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 27 May 2022, via the JSE link and also available
on the Company’s website at
http://brikor.co.za/_webmoduledata/Documents/BrikorYE22results.pdf
Copies of the full announcement may also be requested by
contacting Ms 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/2022/jse/isse/bik/YERes22.pdf
The annual financial statements including the audit opinion of the
external auditor, Nexia SAB&T, which sets out the key audit
matters and the basis for its unmodified opinion, is available on
the Company’s website on
http://brikor.co.za/_webmoduledata/Documents/BrikorAFS2022.pdf
27 May 2022
Nigel
Designated adviser
Exchange Sponsors
Date: 27-05-2022 09:37:00
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