Cashbuild operating profits rise by 30%

Cashbuild announced on Tuesday it had lifted operating profit by 30 percent to R465 million in the year to June on revenue that was 13 percent higher at R7.7 billion.

The southern African retailer of building materials and associated products to cash-paying customers continues to build its own business.

Its “constantly expanding chain of stores” in South Africa, Namibia, Lesotho, Botswana, Swaziland and Malawi currently number 223.

Profit for the year, after deductions including taxes and interest, came in at R363 million, a 35 percent improvement on R269 million recorded last time.

Headline earnings per share increased by 34 percent from 1 144.6 cents to 1 528.2 cents. A dividend of 712 cents was declared, representing a 35 percent increase on 528 cents in the prior year.

A statement from Cashbuild noted its recent announcement that it had agreed to acquire P&L Hardware’s 39 retail outlets for R350 million, plus a potential further R80 million depending on profit over the next three years. That deal is expected to close in November.

Source : Siobhan Cassidy - IOL.co.za
www.iol.co.za/business/companies/cashbuild-lifts-profit-30-1.1908676#.VeXd3flVhHw