Building materials manufacturer and supplier Brikor increased its profit after tax to R12-million for the financial year ended February 28.
That compares with the profit after tax of R1.5-million reported for the prior financial year.
Revenue, however, decreased to R257.9-million, from R292.7-million in the 2020 financial year, as a result of the Covid-19-related closure of the company's bricks segment until the end of April 2020.
The company's coal mining operation, Ilangabi Investments 12, was, however, allowed to continue to operate at 50% capacity during the initial lockdown period in South Africa.
The coal segment, however, experienced the aftermath of the initial lockdown period during the last quarter of the reporting period, with increased supply in the local markets adding pressure on sales prices and demand, which directly impacted on sales volumes and prices.
Further, Brikor reports that unusually high levels of rainfall had also negatively impacted on sales volumes for January and February this year.
“From August to December 2020, revenues were the highest we have seen in the last five years.
"Brikor is a resilient business, illustrated by the fact that the business produced such remarkable results during the pandemic. We had stock on hand before the lockdown and this had a positive effect after the hard lockdown was lifted.
"We are on the lookout for expansion opportunities after acquiring a 40% shareholding in Zingaro Holdings in March this year, which provides multi-product road transportation services for bulk commodities,” says Brikor CEO Garnett Parkin.
Brikor's earnings a share increased to 1.9c, from 0.2c in the previous financial year, mainly owing to the increase in profit for the reporting period.
Headline earnings a share also increased to 2.1c, from 0.1c, mainly owing to variable costs savings, the decrease in the rehabilitation provision during the last quarter of the reporting period, as well as savings in administrative and other expenditure.
Brikor continued to generate profits and invest in property, plant and equipment.
"Major capital investments made by the group during the reporting period comprised R1.2-million for the replacement of the factory roof at the bricks segment, as well as the building of an eating area for employees.
Additions to plant and equipment during the reporting period amounted to R8.1-million, which included a right-of-use asset to the value of R4.3-million.