Brikor (BIK)‚ which is in provisional liquidation and whose AltX-listed shares are suspended‚ on Monday reported interim results that reflect its “profitable turnaround”.
The manufacturer and supplier of building and construction materials reported that its fully diluted headline earnings per share for the six months ended August rose almost threefold to 3.8c‚ from 1.3c in the same period of the prior year.
In July‚ Brikor reported a return to profitability for the year ended February; however‚ the group failed to submit the financial statements within the regulatory three-month period for the period. Revenue in the six months ended August grew 48% to R155.4m “in a competitive operating environment” thanks largely to the addition of coal sales as well as increased sales in the bricks division‚ Brikor said.
The mining and sale of coal‚ through its Ilangabi subsidiary‚ is a new contributor to the group. The segment contributed operating profit before interest and tax of R18.4m‚ making it the largest segment by operating profits. Brikor’s operating expenses increased “marginally” by 13% to R16.9m‚ while the group’s operating profit before interest and tax improved 59% to R36.6m.
The results “reflect the profitable turnaround of the group”‚ said Brikor. The group added that it was benefiting from an improvement in market conditions and had “positioned itself accordingly to extrapolate maximum benefits from such improvements”.
Brikor was expecting “continuing improved results” for the next reporting period. In July‚ Brikor’s shares were suspended as it was placed in provisional liquidation. The court date has been set for the May 16 2014. The legal dispute leading to Brikor’s provisional liquidation is between the group and its banker‚ FirstRand. The dispute regards default clauses of the bank’s financial agreements with the company.
During Brikor’s financial year ended February 2013‚ the group had focused on improving its financial position by focusing on its core operations. This included a reduction in costs‚ the commissioning of coal operations through its subsidiary‚ and the sale of noncore assets.
Brikor said on Monday that these steps had “positively influenced” its interim results.