Cashbuild reports 5% rise in revenue

Cashbuild - southern Africa’s largest retailer of quality building materials and associated products - has reported on annual trading for the year ended 30th June 2018.

Financial highlights

- Revenue for the year increased by 5% to R10.2bn

- Revenue for stores in existence prior to July 2016 (pre-existing stores – 276 stores) remained at similar levels while our 42 new stores provided the 5% increase.

- Gross profit increased by 4% with gross profit percentage decreasing from 25.5% to 25.2%. This was achieved in tough trading conditions with selling price inflation of 2%.

- Operating expenses, including new stores, remained well controlled and increased by only 9% (existing stores 3% and new stores 6%). Notwithstanding this, the increase in revenue did not compensate for the increased expenses, resulting in operating profit decreasing by 12%.

- Basic earnings per share decreased by 10% with headline earnings per share also decreasing by 9% from the prior year. The effective tax rate of 28.4% for the period is similar to that of the previous period. Cash and cash equivalents increased by 19% to R953 million.

- During the year, Cashbuild opened 25 new stores (11 Cashbuild stores, six P&L Hardware stores and acquired eight stores which were converted to P&L Hardware stores), refurbished 27 stores and relocated six Cashbuild stores.

- Cashbuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner, applying the same rigorous process as in the past.

Prospects

Group revenue for the six weeks after year end has increased by 1% on the comparable six week period. Management believe trading conditions will remain extremely challenging. This information has neither been reviewed nor audited by the company’s auditor.

Source : Cashbuild

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