| BDM - Buildmax Limited - Audited results for the year ended 31 March 2007 | |
| 2007/06/28, 13:28:00 | |
BDM
BDM - Buildmax Limited - Audited results for the year ended 31 March 2007
BUILDMAX LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1995/012209/06)
SHARE CODE: BDM ISIN:ZAE000011250
("BUILDMAX" OR "THE COMPANY")
Audited results for the year ended 31 March 2007
The consolidated audited results of Buildmax Limited and its
subsidiaries for the year ended 31 March 2007 are set out below:
12 months 12 months
Change 31/03/2007 31/03/2006
(audited) (audited)
R'000 R'000
ABRIDGED BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment 12 364 8 857
Investments
- -
Deferred taxation 1 004 955
Current assets 54 650 46 027
Total assets 68 018 55 839
EQUITY AND LIABILITIES
Share capital and reserves 46 200 39 357
Long-term liabilities 18 44
Deferred taxation 1 108
-
Current liabilities 20 692 16 438
Total equity and liabilities 68 018 55 839
Net asset value per share (cents)
110.51 94.14
Share capital and reserves 46 200 39 357
Divided by weighted average number 41 806 41 806
of shares in issue
Net tangible asset value per share 17.39% 110.51 94.14
(cents)
ABRIDGED INCOME STATEMENT
Gross revenue 12.62% 114 857 101 989
Operating profit 7 258 5 330
Net interest received 854 701
Profit before taxation 34.51% 8 112 6 031
Taxation (1 435) (2 045)
Net profit for the year 67.51% 6 677 3 986
Extraordinary items 793 -
Net earnings for the year 87.41% 7 470 3 986
Earnings per share (cents) 87.41% 17.87 9.53
Net profit for the year 7 470 3 986
Divided by weighted average number 41 806 41 806
of shares in issue
Headline earnings per share (cents) 68.16% 15.88 9.44
Profit before taxation 8 112 6 031
Adjusted for:
(Profit) on sale of property, plant ( 38) ( 38)
and equipment
Taxation (1 435) (2 045)
Headline earnings 6 639 3 948
Divided by weighted average number 41 806 41 806
of shares in issue
ABRIDGED CASH FLOW STATEMENT
Operating activities 4 440 3 531
Investing activities (5 495) (1 365)
Financing activities ( 26) ( 26)
Net cash generated (1 081) 2 140
Cash and cash equivalents beginning 11 902 9 762
of year
Cash and cash equivalents end of -9.08% 10 821 11 902
year
ABRIDGED STATEMENT OF CHANGES IN
EQUITY
Equity beginning of year 39 357 35 789
Prior year Adjustment AC105 - Leases - -
Dividend Paid ( 627) ( 418)
Net profit for the year 7 470 3 986
Equity end of year 17.39% 46 200 39 357
COMMENTARY
The Board of Directors are pleased to announced that the results of the
Group for the year ended 31 March 2007 showed a better than expected
improvement. Costs were well maintained whilst the growth in the building
sector is reflected in the results of the Group.
Turnover increased by 12.62% to R 114.857 million compared to R 101.989
million in the previous year. Operating profit before taxation improved by
34.51% from R6.031 million to R 8.112 million. The improvement in profit
before taxation can largely be attributed to cost savings as well as
improved economies of scale. Headline earnings per share improved by 68.16%
to 15.88 cents per share (2006 : 9.44 cents). Earnings per share improved
by 87.41% to 17.87 cents per share (2006 : 9.53 cents). Earnings per share
is stated after the taxation refund received in respect of Watson Tile &
Concrete (Pty) Ltd which was disposed of during 2001/2002.
The net asset value per share improved by 17.39% to 110.51 cents (2006:
94.14 cents). Cash resources decreased slightly to R 10.8 million after the
Group spent R 5.495 million on capital expenditure during the year.
OPERATIONAL REVIEW
Although the overall growth in the Building Industry was higher than the
Group's growth, a distinction should be made between Infrastructure growth
and Building Sector growth.
All the individual divisions contributed to the growth of the Group. It is
pleasing to note that the smaller divisions are growing at a reasonable
rate.
The benefit in the Galvanised division, is mainly due as a result of price
increases from its major supplier. During the year under review, the
division procured additional raw materials to offset the threat of
shortages in the market. During the last quarter the division experienced
a decline in margins as a result of increased competition in the market.
The Concrete division continue to show robust demand for its products.
After the initial hesitant start, turnover improved substantially during
the last quarter of the year. The new VBX4 machine was commissioned during
the year and although commissioning took longer than anticipated, it is now
fully operational and running a full shift daily. Current indications are
that this Division will continue to show strong growth in the medium term.
As a result of the improved cost structure, the Timber division's
contribution has improved satisfactorily, and it is capitalising on the
value added products it can market.
The Aluminium division experienced substantial price increases in raw
materials, but as a result of competition in the market, could not pass on
all the increases to their customers. Despite this, the Division continued
to show positive growth and is looking at opening more branches in new
areas.
PROSPECTS
The new National Credit Act as well as the increases in the prime lending
rate during the last few months, will result in a small decline in the
market. This is however expected to be a once-off correction. Increased
Government spending on infrastructure should result in a positive spin-off
in the domestic and industrial building industries. Despite the above, the
Directors are confident that the Group's turnaround has been stabilised and
profitability can be maintained.
CHANGE OF OWNERSHIP IN HOLDING COMPANY
SMG Holdings Limited control 70.26% of the issued share capital of Buildmax
Limited.
On 21 June 2007 a Court ruling was made whereby Cavcon (Pty) Ltd obtained
control of SMG Holdings Limited in terms of a Section 311 (1) offer to
creditors whereby the Cavcon Group undertakes to settle and/or compromise
with the creditors of SMG Holdings Limited. Shareholders are however still
cautioned, as there might be further dealings in the majority shareholding.
APPRECIATION
The Board would like to extend its sincere appreciation to all Directors,
Management and Staff who worked diligently, showed initiative and have
taken significant responsibility during the challenging past four years,
without the support of a majority shareholder.
DIVIDEND
No dividend has been declared for the financial year under review.
(2006:1.5 cents)
DIRECTORATE
No changes have been made to the Directorate during the year.
ACCOUNTING POLICY
The financial results have been prepared in accordance with International
Financial Reporting Standards.
AUDIT REPORT
The Group Financial Statements have been audited by Meagher Moynihan, and
their unqualified audit report on these financial statements is available
for inspection at the registered address of the Group.
For and on behalf of the Board
IDP Burger NR Jansen
Chairman Acting CEO
Germiston
28 June 2007
Sponsor: Sasfin Corporate Finance
Date: 28/06/2007 13:28:01 Produced by the JSE SENS Department. |