| Tue 17 Mar 2009, 11:05 | | CSB - Cashbuild Limited - Audited Interim Results December 2008 and dividend |
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CSB
CSB - Cashbuild Limited - Audited Interim Results December 2008 and dividend
declaration
Cashbuild Limited
(Registration number: 1986/001503/06)
(Incorporated in the Republic of South Africa)
Listed on the JSE Limited
JSE Share Code: CSB & ISIN: ZAE000028320
Audited interim results December 2008 and dividend declaration
- Revenue up 28%
- Net asset value per share up 36%
- Operating profit up 39%
- Headline earnings up 42%
- Cash & cash equivalents up 19%
- Dividends up 42%
CONDENSED GROUP INCOME STATEMENT - AUDITED
Six months Six months Year
ended ended ended
31 December 31 December % 30 June
R`000 2008 2007 Change 2008
(26 weeks) (26 weeks) (52 weeks)
Revenue 2 572 840 2 011 325 28 4 043 493
Cost of sales (2 018 516) (1 589 876) 27 (3 171 658)
Gross profit 554 324 421 449 32 871 835
Selling and marketing expenses (343 987) (263 185) 31 (552 885)
Administrative expenses (53 376) (46 515) 15 (97 656)
Other operating expenses (2 725) (2 089) 30 (3 326)
Other income 321 1 469 (78) 9 447
Operating profit 154 557 111 129 39 227 415
Finance cost (1 813) (911) 99 (2 886)
Finance income 15 764 9 463 67 20 200
Profit before income tax 168 508 119 681 41 244 729
Income tax expense (51 561) (37 412) 38 (75 180)
Profit for the period 116 947 82 269 42 169 549
Attributable to:
Equity holders of the company 111 162 78 213 42 160 768
Minority interest 5 785 4 056 43 8 781
116 947 82 269 42 169 549
Earnings per share (cents) 489.5 344.4 42 707.9
Diluted earnings per share (cents) 489.5 344.4 42 707.9
ADDITIONAL INFORMATION - AUDITED
Six months Six months Year
ended ended ended
31 December 31 December 30 June
R`000 2008 2007 2008
Net asset value per share (cents) 2 151 1 579 1 825
Ordinary shares (`000):
- In issue 25 805 25 805 25 805
- Weighted-average 22 709 22 709 22 709
- Diluted weighted-average 22 709 22 709 22 709
Capital expenditure 73 354 26 421 69 106
Depreciation of property, plant
and equipment 19 503 15 566 33 866
Amortisation of intangible assets 944 1 078 1 802
Capital commitments 99 670 155 575 170 012
Property operating lease commitments 811 470 687 203 775 477
Contingent liabilities 2 950 12 077 16 850
CONDENSED GROUP BALANCE SHEET - AUDITED
31 December 31 December 30 June
R`000 2008 2007 2008
ASSETS
Non-current assets 362 912 273 163 299 971
Property, plant and equipment 318 739 253 179 276 070
Intangible assets 21 734 9 346 11 274
Deferred income tax assets 22 439 10 638 12 627
Current assets 1 615 425 1 233 954 1 304 794
Assets held for sale 2 740 2 740 2 740
Inventories 952 802 674 144 832 449
Trade and other receivables 75 027 63 649 88 228
Cash and cash equivalents 584 856 493 421 381 377
Total assets 1 978 337 1 507 117 1 604 765
EQUITY AND LIABILITIES
Shareholders` equity 594 798 436 991 505 109
Share capital and reserves 555 191 407 436 470 967
Minority interest 39 607 29 555 34 142
Non-current liabilities 47 279 39 152 43 052
Deferred operating lease liability 43 458 35 520 39 330
Deferred profit 1 829 1 881 1 855
Borrowings (non interest-bearing) 1 992 1 751 1 867
Current liabilities 1 336 260 1 030 974 1 056 604
Trade and other liabilities 1 284 950 998 439 1 022 140
Current income tax liabilities 49 075 31 347 33 224
Employee benefits 2 235 1 188 1 240
Total equity and liabilities 1 978 337 1 507 117 1 604 765
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY - AUDITED
R`000
Attributable to equity holders of the company
Treasury Treasury Cum.
Share share Share share translation Retained Minority Total
capital capital premium premium adjustment earnings interest equity
Balance at 1 July 2007
258 (29) 115 817 (83 686) (7 432) 326 290 32 075 383 293
Profit for the period
- - - - - 78 213 4 056 82 269
Dividend paid - final 2007
- - - - - (21 347) (6 576) (27 923)
Currency translation adjustments
- - - - (648) - - (648)
Balance at 31 December 2007
258 (29) 115 817 (83 686) (8 080) 383 156 29 555 436 991
Profit for the period
- - - - - 82 555 4 725 87 280
Dividend paid - interim 2008
- - - - - (22 937) (138) (23 075)
Currency translation adjustments
- - - - 3 913 - - 3 913
Balance at 30 June 2008
258 (29) 115 817 (83 686) (4 167) 442 774 34 142 505 109
Profit for the period
- - - - - 111 162 5 785 116 947
Dividend paid - final 2008
- - - - - (29 070) (320) (29 390)
Currency translation adjustments
- - - - 2 132 - - 2 132
Balance at 31 December 2008
258 (29) 115 817 83 686) (2 035) 524 866 39 607 594 798
CONDENSED GROUP CASH FLOW STATEMENT - AUDITED
Six months Six months Year
ended ended ended
31 December 31 December 30 June
R`000 2008 2007 2008
Cash flows from operating activities
Cash generated from operations 337 158 487 006 469 508
Interest paid (1 813) (911) (2 886)
Taxation paid (45 522) (47 688) (85 568)
Net cash generated from operating
activities 289 823 438 407 381 054
Cash flows from investing activities
Net investment in assets (72 843) (26 212) (68 681)
Interest received 15 764 9 463 20 200
Net cash used in investing activities (57 079) (16 749) (48 481)
Cash flows from financing activities
Increase in borrowings 125 106 222
Dividends paid
- own equity (29 070) (21 347) (44 284)
- minorities (320) (6 576) (6 714)
Net cash used in financing activities (29 265) (27 817) (50 776)
Net increase in cash and cash
equivalents 203 479 393 841 281 797
Cash and cash equivalents at
beginning of period 381 377 99 580 99 580
Cash and cash equivalents at
end of period 584 856 493 421 381 377
CONDENSED GROUP SEGMENTAL ANALYSIS - AUDITED
South Africa
Six months Six months Year
ended ended ended
31 December 31 December 30 June
R`000 2008 2007 2008
Income statement
Revenue 2 112 890 1 659 897 3 346 359
Operating profit 107 172 88 111 178 245
Balance sheet
Segment assets 1 592 314 1 206 464 1 268 995
Segment liabilities 1 151 900 880 198 901 539
Other segment items
Depreciation 17 238 13 542 29 751
Amortisation 944 1 061 1 766
Capital expenditure 62 868 25 934 67 914
Other members of common monetary area*
Six months Six months Year
ended ended ended
31 December 31 December 30 June
R`000 2008 2007 2008
Income statement
Revenue 251 936 213 110 411 623
Operating profit 18 279 11 583 24 278
Balance sheet
Segment assets 223 857 172 104 194 139
Segment liabilities 127 861 99 833 111 485
Other segment items
Depreciation 1 542 1 405 2 826
Amortisation - - -
Capital expenditure 9 528 418 675
*Includes Namibia, Swaziland and Lesotho
Botswana and Malawi
Six months Six months Year
ended ended ended
31 December 31 December 30 June
R`000 2008 2007 2008
Income statement
Revenue 208 014 138 318 285 511
Operating profit 29 106 11 435 24 892
Balance sheet
Segment assets 162 166 128 549 141 631
Segment liabilities 103 778 90 095 86 632
Other segment items
Depreciation 723 619 1 289
Amortisation - 17 36
Capital expenditure 958 69 517
Group
Six months Six months Year
ended ended ended
31 December 31 December 30 June
R`000 2008 2007 2008
Income statement
Revenue 2 572 840 2 011 325 4 043 493
Operating profit 154 557 111 129 227 415
Balance sheet
Segment assets 1 978 337 1 507 117 1 604 765
Segment liabilities 1 383 539 1 070 126 1 099 656
Other segment items
Depreciation 19 503 15 566 33 866
Amortisation 944 1 078 1 802
Capital expenditure 73 354 26 421 69 106
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL INFORMATION
1. Basis of preparation. The condensed consolidated interim financial
information ("financial information") announcement is based on the audited
interim financial statements of the group for the period ended 31 December 2008,
which have been prepared in accordance with International Financial
Reporting Standards ("IFRS") and the presentation and disclosure requirements of
IAS 34 - Interim Financial Reporting, the Listings Requirements of the JSE
Limited and the South African Companies Act (1973) and consistently applied to
the prior year.
2. Independent audit by the auditors. These condensed consolidated interim
results have been audited by our auditors PricewaterhouseCoopers Inc., who have
performed their audit in accordance with the International Standards on
Auditing. A copy of their unqualified audit report is available for inspection
at the registered office of the company.
3. Reporting period. The group adopts the retail accounting calendar, which
comprises the reporting period ending on the last Saturday of the month (2008:
27 December (26 weeks); 2007: 29 December (26 weeks); June 2008:28 June (52
weeks)).
4. Earnings per share. Earnings per share is calculated by dividing the earnings
attributable to shareholders for the period, by the weighted average number of
22 709 487 ordinary shares in issue during the period.
(December 2007: 22 709 487 shares; June 2008: 22 709 487 shares).
5. Headline earnings per ordinary share. The calculations of headline earnings
and diluted headline earnings per ordinary share are based on headline earnings
of R111.4 million (December 2007: R78.7 million; June 2008: R161.2 million)and a
weighted average of 22 709 487 (December 2007: 22 709 487; June 2008: 22 709
487) and fully diluted of 22 709 487
(December 2007: 22 709 487; June 2008: 22 709 487) ordinary shares in issue.
Reconciliation between net profit attributable to the equity holders of the
company and headline earnings:
R`000 Dec-08 Dec-07 % Change Jun-08
Net profit attributable to the
company`s equity holders 111 162 78 213 42 160 768
Loss on sale of assets
after taxation 258 464 391
Headline earnings 111 420 78 677 42 161 159
Headline earnings per share (cents) 490.6 346.5 42 709.7
Diluted headline earnings per
share(cents) 490.6 346.5 42 709.7
6.Declaration of dividend. The board has declared an interim dividend (No. 32),
of 143 cents (December 2007: 101 cents) per ordinary share to all shareholders
of Cashbuild Limited. The dividend per share is calculated based on 25 805 347
shares in issue at date of dividend declaration.
Date dividend declared: Monday, 16 March 2009
Last day to trade "CUM" the dividend: Friday, 17 April 2009
Date commence trading "EX" the dividend: Monday, 20 April 2009
Record date: Friday, 24 April 2009
Date of payment: Tuesday, 28 April 2009
Share certificates may not be dematerialised or rematerialised between Monday,
20 April 2009 and Friday, 24 April 2009, both dates inclusive.
On behalf of the board
DONALD MASSON PAT GOLDRICK
Chairman Chief executive
Johannesburg Date: 16 March 2009
COMMENTS
NATURE OF BUSINESS
Cashbuild is southern Africa`s largest retailer of quality building materials
and associated products, selling direct to a predominantly cash-paying customer-
base through our constantly expanding chain of stores (182 at the end of this
reporting period). Cashbuild carries an in-depth quality product range tailored
to the specific needs of the communities we serve. Our customers are typically
home-builders and improvers, contractors, farmers, traders, large construction
companies and government-related infrastructure developers, as well as all other
customers requiring quality building materials at lowest prices.
Cashbuild has built its credibility and reputation by consistently offering its
customers quality building materials at the lowest prices and through a
purchasing and inventory policy that ensures customers` requirements are always
in stock.
INTERNATIONAL FINANCIAL REPORTING STANDARDS
The group is reporting its audited interim results in accordance with
International Financial Reporting Standards ("IFRS").
FINANCIAL HIGHLIGHTS
Revenue for the half year increased by 28% whilst profit increased by 42%. This
increase in profit was as a result of an improvement in operating profit of 39%
as well as a 63% increase in net finance income. Basic earnings per share, as
well as headline earnings per share improved by 42%. Net asset value per share
has shown a 36% increase, from 1 579 cents (December 2007) to 2 151 cents. Cash
and cash equivalents increased by 19% to R585 million.
Stores in existence since the beginning of July 2007 (pre-existing stores)
accounted for 22% of the increase in revenue with the remaining 6% increase due
to the 20 new stores the group has opened since July 2007. The increase for the
half year has been achieved on the back of steady revenue growth in the first
and second quarters of this interim period. Gross profit margins for the half
year were slightly higher in percentage terms at 21.5% (December 2007: 21.0%),
but in rand terms, increased by a pleasing 32%.
Operational expenses for the half year remained well controlled with existing
stores accounting for 20% of the increase, new stores 9%, the total increase for
the half year amounting to 29%. The main contributor to the higher than
inflation increase on the existing stores is the continued investment in people
to maintain and improve customer service standards, as well as intensive
customer-focused advertising that was undertaken in the run-up to and during the
Christmas trading period.
The effective tax rate for half the year of 31% is in line with that of the
prior corresponding period.
Cashbuild`s balance sheet remains solid. Stock levels have increased by 41% on
the back of comparable growth in revenue of 22% during the half year. This
increase is further attributable to the stocking of 18 additional stores since
the prior half year-end (accounting for 17% of the increase). Overall
stockholding at 79 days (December 2007: 68 days; June 2008: 87 days) showed a
decline on the prior interim period, but improved on the position as at June
2008. Management of stock will remain a focus area for the period to come. Trade
receivables increased in line with expectations and remain well under control.
During the half year Cashbuild opened 11 new stores. Two old stores were closed
(in towns where two stores were trading in close proximity) and two were
relocated. Cashbuild will continue its store expansion, relocation and
refurbishment strategy in a controlled manner, with three new stores planned to
open during the remainder of the financial year.
INFORMATION TECHNOLOGY
Cashbuild`s total IT requirement is in the process of being replaced with a
fully integrated SAP All-in-One and Active Retail solution. The project is
progressing according to plan. Currently nearing the end of the realisation
phase, we expect this project to reach completion by December 2009.
PROSPECTS
Management remains confident about the trading prospects for the next quarter
based on the fact that the first eight trading weeks since half year-end have
reported an increase in revenue of 29% on that of the comparable eight weeks.
Directors: D Masson* (Chairman), PK Goldrick (Chief executive) (Irish), WF de
Jager, J Molobela*, KB Pomario, FM Rossouw*, NV Simamane*, SA Thoresson, A van
Onselen
(*Non-executive)
Company secretary: Corporate Governance Leaders CC
Registered office: cnr Aeroton and Aerodrome Roads, Aeroton, Johannesburg 2001
PO Box 90115, Bertsham 2013
Transfer secretaries: Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107
Auditors: PricewaterhouseCoopers Inc.
Sponsor: Nedbank Capital
17 March 2009
QUALITY BUILDING MATERIALS AT THE LOWEST PRICES
www.cashbuild.co.za
Date: 17/03/2009 11:05:49 Produced by the JSE SENS Department.
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