BDM
BDM - Buildmax Limited - Trading Statement
Buildmax Limited
(Registration No. 1995/012209/06)
Share Code: BDM & ISIN Code: ZAE000011250
("Buildmax" or the "group")
TRADING STATEMENT
In terms of the Listings Requirements of the JSE Limited companies are
required to publish a trading statement as soon as they are reasonably
satisfied that the financial results for the reporting period will differ by
20% or more from the prior comparative period
Shareholders are advised that Buildmax expects that its earnings per share,
headline earnings per share and core headline earnings per share for the year
ended 28 February 2010 (collectively "earnings") will be more than 20% lower
than the earnings of the prior financial year. Some of the key contributing
factors to the decline in earnings are:
- industrial action at Diesel Power, a subsidiary of Buildmax's mining
services business unit, by a significant portion of their workforce
severely disrupted operations culminating in strike activity during the
months of May 2009 and June 2009. Normal activities only resumed in
August 2009;
- the decline in the value of second hand equipment and the scarcity of
bank finance for new equipment forced the mining services division to
hire equipment at punitive rates and to increase the use of sub-
contractors. In addition the division has had to extend the life of its
yellow metal fleet, resulting in increased maintenance costs and reduced
plant availability and productivity;
- abnormally high rainfall in November 2009, December 2009 and January
2010 resulted in the loss of revenue for both mining services and
construction materials; and
- the continued slowdown in the construction industry during the period
under review.
Earnings for the year are also dependent on the outcome of the annual
independent valuation of the group's fleet and on the annual assessment of
the carrying value of investments.
Accordingly Buildmax is not yet in a position to give specific guidance with
regard to the precise extent of the variance as required by the JSE Listings
Requirements for a trading statement.
The information on which this trading statement has been based has not yet
been reviewed or reported on by the company's auditors.
26 February 2010
Sponsor
Java Capital (Proprietary) Limited
Date: 26/02/2010 17:00:07 Produced by the JSE SENS Department.
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