Brikor warns of interim loss


Brikor warns of interim loss

Published Date: 2020-10-14 | Source: Stephen Gunnion | Author: Stephen Gunnion

Brikor warns of interim loss

The brickmaker closed most of its operations at the height of the lockdown, with it coal mining operation running at reduced capacity.

Brikor has warned of an interim loss just months after the company emerged from suspension on the JSE.

In a trading statement, the building supplies group and coal mine owner said it would post a loss of between 0.2c and 0.4c for the six months to end-August, down from earnings of 1.8c last year. Its headline loss would be in the region of 0.1c to 0.3c from earnings of 1.5c previously.

The company gave no reasons for the expected losses but in its annual results statement, released in July, it said its operations were closed form the start of the lockdown until the end of April when restrictions were eased. With no production or sales during the period, it took steps to reduce variable overhead costs and limited spending to only critical fixed costs. Subsidiary Ilangabi Investments 12 continued with coal mining operations in Nigel at 50% of capacity during the lockdown period as the supply of coal was considered an essential service to the electricity supply chain.

Brikor was placed into provisional liquidation and its shares were suspended from trading on the JSE's AltX in July 2013 after it couldn't produce its financial statements within the deadline. Although it came out of provisional liquidation in 2015, the suspension was only lifted at the end of July this year after it had finalised and submitted the 2019 financial statements of Illangabi and Brikor Company to the JSE.

The company expects to release its results by the end of the month. Its shares didn't trade yesterday, closing unchanged at 7c.

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