BRIKOR LIMITED - Financial results for the six months ended 31 August 2023 - Short-form announcement

Financial results for the six months ended 31 August 2023 - 
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" or the "Group")

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2023 -
Short-form announcement

FINANCIAL HIGHLIGHTS

                  31 August           31 August
                       2023                2022           Change
                        R'm                 R'm                %

Revenue                190,1              167,7             13,4
EBITDA                  40,4                7,3           >100,0
EPS (cps)                2,5                0,1           >100,0
HPS (cps)                2,7                0,0            100,0
NAV (cps)               15,4               12,9             19,4
NTAV (cps)              12,6                9,8             28,6

Note: No dividends have been declared for the six months ended 31
August 2023 or 31 August 2022.

Revenue increased to R190,1 million (H1 F2023: R167,7 million) for
the reporting period, with the Group realising a profit before
earnings from its associate of R13,1 million (H1 F2023: loss of
R1,7 million). The investment in associate contributed positive
returns of R7,2 million (H1 F2023: R2,3 million) to the profit for
the reporting period.

Overall, gross profit increased by 126,2% to R52,1 million (H1
F2023: R23,0 million) with the gross profit percentage increasing
to 27,4% (H1 F2023: 13,7%).

The Group realised an operating profit before interest, taxation
and earnings from associate of R26,8 million (H1 F2023: R1,3
million). The Bricks segment realised an operating profit before
interest and taxation R17,1 million (H1 F2023: R12,1 million),
whilst the Coal segment realised an operating profit before
interest and taxation of R9,8 million (H1 F2023: operating loss
before interest and taxation of R10,8 million).

Other income, administrative expenses, distribution and other
expenses increased by 16,6% in comparison to the previous
corresponding reporting period. The increase in administrative
expenses was attributable to professional, legal and secretarial
fees incurred in respect of the acquisition of securities by
Nikkel Trading 392 (Pty) Ltd and subsequent offer to minority
shareholders as well as the contract mining and coal off-take
agreement.
No major capital investments were made during the current
reporting period.

BRICKS SEGMENT
Revenue in the Bricks segment increased by 16,6% to R132,5 million
(H1 F2023: R113,7 million). The Bricks segment continued to
perform at exceptional levels during the reporting period. The
increase in revenue was a direct result of Brikor's exceptional
sales team combined with the availability and quality of saleable
products. Adequate planning, sufficient inventory levels and
continued focus on efficiencies in the production process have
also contributed to the availability of saleable product and the
resultant increase in revenue.

Gross profit in the Bricks segment increased by 67,1% to R40,8
million (H1 F2023: R24,4 million) with the gross profit percentage
increasing to 30,8% (H1 2023: 21,5%). Gross profit increased as a
direct result of the increase in revenue, whilst production and
operating costs remained stable.

COAL SEGMENT
Revenue in the Coal segment increased by 6,6% to R57,6 million (H1
F2023: R54,0 million). The increase in revenue was mainly as a
result of an inflationary increase in selling prices with sales
quantities being in line with the previous reporting period.

Gross profit in the Coal segment increased significantly to R11,4
million (H1 2023: gross loss of R1,4 million). During the
reporting period, the Group entered into a mining consulting
service agreement in order to improve its current mining
operations. The stripping activities performed during this period
exposed a significant portion of coal which resulted in an
increase in work in progress. The increased work in progress
resulted in a credit to cost of sales which, together with the
increase in revenue, yielded higher gross profits for the Coal
segment.

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 Monday, 20 November 2023 via the JSE link and also
available on the Company's website at
https://brikor.net/wp-content/uploads/2023/11/INT23.pdf.

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/2023/jse/isse/bik/INT23.pdf.


20 November 2023
Nigel

Designated adviser
Exchange Sponsors

Date: 20-11-2023 10:00:00
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