Our opinion on the current state of BIK

Brikor (BIK) is a company that manufactures bricks, roof tiles and clay pipes. It was listed on the Alt-X in August 2007 and describes itself as "...a diverse manufacturer and supplier of building and construction materials across a broad spectrum of the market from low-cost housing, residential to commercial, industrial, civil engineering and infrastructure projects and has a brick and coal segment through its subsidiary, Ilangabi Investments". The company is trying to improve its BEE status. The share was suspended on the JSE from end of July 2013 to 31st July 2020 at 9c per share. Since it resumed trading, it has shot up to 199c before settling back to 15c. In its results for the six months to 31st August 2022 the company reported revenue up 10,1% and headline earnings per share (HEPS) of zero compared with 1,1c in the previous period. The company's net asset value (NAV) fell 4,9% to 13,7c per share. The company said, "Overall, gross profit decreased by 29,9% to R23,0 million (H1 F2022: R32,9 million) with the gross profit percentage decreasing to 13,7% (H1 F2022: 21,6%)". In a trading statement for the six months to 31st August 2023 the company estimated that HEPS would be between 2,4c and 2,9c compared with 0,0c in the previous period. The average value of shares changing hands each day has fallen to around R39 000 which makes it impractical for private investors. The patchy revival of the construction sector since 2021 has been a positive factor. Selling bricks is a tough business in South Africa and this company seems to have survived COVID-19 which speaks volumes for its management. On 1st July 2022 the JSE warned that Brikor had missed the deadline to publish its financials within 4 months of its financial period end.