End is in sight for Brikor suspension
Building supplies specialist Brikor, which has been suspended on the JSE for more than five years, is inching closer to regaining its trading status.
Building supplies specialist Brikor, which has been suspended on the JSE for more than five years, is inching closer to regaining its trading status.
Brikor was suspended in 2013 after not publishing financial statements within the stipulated JSE deadline.
The company also fended off a liquidation application, and has since shown dogged determination in rebuilding a viable operating base. On Friday Brikor issued financial results to end February 2018 that might further fan flickers of shareholder optimism, with directors hopeful about the potential that could be unlocked from the company.
In the annual report, directors advised that documentation pertaining to the lifting of Brikor’s suspension had been submitted to the JSE.
They said that outstanding statutory annual financial statements still required by the JSE would, on completion, be submitted. The directors highlighted the consistent improvement in Brikor’s financial position, with the last major debts outstanding being amounts owed to related parties and the South African Revenue Services. Brikor’s revenue increased 6,6% in its brick manufacturing operations to R179m and 12% in coal extraction to R94m.
The directors said that with less rain in the financial year, Brikor had managed to produce more bricks and extract more coal. It also focused on building clay stockpiles, which could weather over longer periods of time, resulting in an increased yield of high quality bricks.
Improved operating procedures saw operating profit before interest and taxation surge 82% to R33,5m.
But headline earnings slumped 74,5% to 1,2c a share after a large tax credit banked in the 2017 financial year did not recur in the financial year under review. Directors said that with a lower risk profile going forward, Brikor should be in a position to gain access to financing and investment to explore growth opportunities.
One worry, however, is that at year end Brikor’s current liabilities exceeded its current assets (excluding assets-heldfor sale) by R5,4m. The directors said Brikor’s total assets still exceeded its total liabilities by R59m, adding that the disposal of certain noncore assets and operations was under way.