Things are look­ing a bit bet­ter

The Star Early Edition - - COMPANIES -

BUILDMAX, the listed open­cast min­ing con­trac­tor and build­ing ma­te­ri­als sup­plier, achieved an im­proved fi­nan­cial per­for­mance in the year to Fe­bru­ary af­ter tak­ing ac­tion to ad­dress the im­pact on the com­pany of the cri­sis in the global min­ing in­dus­try. The com­pany said yes­ter­day that al­though the out­look for the global min­ing in­dus­try had im­proved since the end of last year be­cause of in­creased de­mand and prices for com­modi­ties, this was not the case for Buildmax. It said that the global min­ing in­dus­try had been in cri­sis over the im­me­di­ate past, which took a heavy toll, par­tic­u­larly in bulk com­modi­ties such as iron ore, man­ganese, chrome, cop­per and coal. Buildmax said ex­treme mea­sures, such as head count cuts, were re­quired to sur­vive, adding that sev­eral com­pa­nies were placed in busi­ness res­cue or liq­ui­da­tion while cap­i­tal ex­pen­di­ture was shelved. The com­pany said it was ad­versely af­fected by these un­favourable con­di­tions be­cause it was mainly in­volved in coal. Buildmax re­sponded to this en­vi­ron­ment by re­duc­ing over­heads, switch­ing to leas­ing a por­tion of its as­sets, clos­ing those sec­tions of its busi­ness that could no longer ob­tain prof­itable work and can­celling loss-mak­ing con­tracts. “This led to an im­proved fi­nan­cial per­for­mance,” the com­pany said. Buildmax yes­ter­day re­ported a nar­row­ing in its head­line loss a share to 20.3 cents in the year to Fe­bru­ary from the loss of 84c in the pre­vi­ous year. Rev­enue de­creased to R925.2 mil­lion from R944.6m. Buildmax said this was in line with the group’s strat­egy to ter­mi­nate loss mak­ing con­tracts. Buildmax shares closed flat at 20c on the JSE yes­ter­day. – Roy Cokayne

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.