Diversified mining and construction materials supplier Buildmax suffered a heavy loss for the 6 months to August due to a hangover from the global economic crisis.

Tuesday, 25 May 2010 02:00

Buildmax full year earnings loss 5.9c

Buildmax has reported a headline loss of 5.9c per share for the year ended 28 February 2010, from a previous headline earnings per share of 13.4c.

Tuesday, 10 November 2009 02:00

Buildmax earnings at 3.7c vs 9.5c

Buildmax reported headline earnings per share (HEPS) of 3.7c for the six months ended August 31, against 9.5c earlier.

Construction IndustryOpencast coal mining contractor and supplier of construction materials Buildmax on Monday reported headline earnings per share (HEPS) of 3.7 cents for the six months ended August 31, against 9.5 cents earlier.

Core HEPS of 4.5 cents were reported, from 10.6 cents previously.

Earnings per share (EPS) of 3.2 cents was 70% lower than the pro forma historical EPS of 10.5 cents.

Revenue increased to R957.3 million, from R845.7 million earlier.

Operating profit (EBIDTA) was at R186.8 million, from R255.2 million earlier.

Buildmax said that cash generated from operations of R242 million was 15% higher than the cash generated from operations in the comparative period of R211 million.

In line with group strategy, capital expenditure of R122 million was incurred for the interim period, compared with R323 million in the comparative period, Buildmax said.

Mining Services delivered revenue growth of 27%, but was unable to convert the higher revenue into increased profits, it said.

"The loss in revenue due to the industrial action and the downtime in July approximated R95 million, while fixed costs remained ongoing and additional HR costs were incurred.

"Construction Materials reported a decrease in revenue of 16% primarily due to the severe decline in the residential sector," Buildmax said.

"Compared to the prior interim period the international and local business environment has deteriorated significantly which, combined with industrial action at Diesel Power Open Cast Mining ("Diesel Power"), the group's largest subsidiary, negatively impacted Buildmax's results," the group said.

Looking ahead, it said that trading conditions remained challenging.

"Provided there is no further deterioration in the local and international economic environment and absenting abnormally high rainfall the group is optimistic that the results for the second half of the year will be stronger than for the first half," it concluded.

 

Tuesday, 03 June 2008 02:00

Rosy revenue outlook for bigger Buildmax

BUILDMAX, a supplier to the mining and construction industries, has set itself the ambitious targets of raising turnover 15-fold in the present financial year. As if to underline this, its share climbed more than 6% yesterday.

Construction IndustryThe R111,5m revenue the group made in the year to February is minuscule compared with the R1,7bn it expects to make this year.

However, the recent results do not take into account two major acquisitions the group made between December and March, which are expected to enhance an enlarged Buildmax’s earnings.

The group spent about R1,5bn to acquire equipment and services supplier Buildco and Diesel Power Open Cast Mining, strengthening its position in the both the mining (especially coal mining) and the construction sectors.

These are both high-growth sectors, given the increased demand for coal by Eskom, as well as billions of rands being spent by both the government and private sector on infrastructure projects.

The group has also projected an after tax profit of just above R200m, making it a competitor in its sector.

CEO Paul de Klerk said the group’s equipment and services division would do even better than expected because it was already dealing with huge demand.

The prospects look rosy.

 

Thursday, 03 April 2008 02:00

Buildmax floats new shares to raise capital

DIVERSIFIED supplier of equipment and open cast mining services and construction materials Buildmax revised its listing on the JSE main board, yesterday floating 179 million new shares to raise about R310m in capital.

Construction IndustryCEO Paul de Klerk said the group would use the funds to reduce debt and finance growth.

Buildmax’s share price opened at R2,25, a 25% premium to the R1,80 per share in the pre-listing private placement, giving it a market capitalisation of R2bn on listing of the new shares from a mere R100m previously.

Foreign investors took about 40% of the private placement. The group raised a further R61m by the issuing of 40- million new shares to a black economic empowerment consortium led by Vuwa Investments, an existing shareholder in its subsidiary Buildco.

The capital raised would be used partly to fund the acquisition of Diesel Power. Through this acquisition, as well as that of Buildco, Buildmax has repositioned itself as a supplier of equipment, mining services and construction material.

This is expected to drive growth with revenue forecast to grow to R1,7bn, profit from operations to R373m and profit after tax to R201m.

 

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