Brikor warns of loss after Covid-19 shutdown
The building materials group expects a headline loss of about R1.89m, having only recently regained its JSE listing
Building materials group Brikor, which only regained its JSE listing in July after a seven-year hiatus, has warned of an interim loss after Covid-19 brought a halt to the construction industry.
The group said in a trading update it expects a headline loss per share of between 0.1c and 0.3c in it six months to end-August, from headline earnings per share of 1.5c previously.
This implies the Brikor could see a profit swing of about R11m and the group has said previously it was closed for level 5 lockdown until the end of April 2020, with no production or sales. It had also only generated limited revenue in May from essential services customers.
Brikor, which is a supplier of building and construction materials and also mines clay and coal, said recently it began operating at reduced capacity in April when a small number of employees returned to work. It said it could operate at 50% from May 1 and had seen improved demand as SA’s lockdown eased.
Various initiatives were implemented to preserve liquidity, such as reduced variable overhead costs and limited spending only on critical fixed costs, the group said.
Brikor was suspended from the JSE in July 2013 after entering provisional liquidation, which it emerged from in October 2015.
At the end of February 2013 the group’s current liabilities of some R184m had been more than twice its current liabilities, while the group had also been embroiled in a legal dispute with its financier, RMB, over the issue of financial covenant breaches.
The group had also been under some pressure at the time from a slowdown in SA's residential building sector.
In afternoon trade on Tuesday, Brikor’s share was unchanged at 7c, giving it a market capitalisation of R45m. The group’s share has fallen 22.22% since relisting in July.
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