CAPE TOWN – Suspended construction material supplier Brikor lifted attributable profit from continuing operations to R11 million in the six months to August 31 from R2.1m, in spite of being in provisional liquidation four years ago and the depressed state of the construction industry.
In a trading statement for the period to August, Brikor said it increased revenue by 8.1 percent to R166.1m in the six-month period. Net asset value rose 19 percent to 12.5 cents per share and net tangible asset value grew 32.2 percent to 7.8c per share. The share price was suspended at 9c a share.
Headline earnings per share increased by 275 percent to 1.5c per share. There were hopes to get the suspension lifted in the near future, a spokesperson said. Chief executive Garnett Parkin said the interim figures were a result of “stringent operational streamlining of our internal processes.”
“We decided to develop the group's capacity to produce our own bricks and stopped buying-in bricks from third parties. We did this by increasing labour shifts. This resulted in a net saving of R1m, despite inflationary increases and increased costs associated with expanding internal capacity,” said Parkin.
The crisis in construction has resulted in a number of listed companies applying for business rescue, including Group Five, Basil Read and Esor, while Aveng has experienced serious difficulties. The low infrastructure spend has also led to large scale retrenchments.