| Tue 15 Sep 2009, 8:48 | | CSB - Cashbuild Limited - Audited final results June 2009 |
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CSB
CSB
CSB - Cashbuild Limited - Audited final results June 2009
Cashbuild Limited
(Registration number: 1986/001503/06)
(Incorporated in the Republic of South Africa)
Listed on the JSE Limited
JSE code: CSB ISIN: ZAE000028320
Audited final results June 2009
Highlights:
Revenue up 25% Net asset value per share up 24% Operating profit up 10%
Headline earnings up 10% Dividends up 7%
CONDENSED GROUP INCOME STATEMENT - AUDITED
Year ended Year ended
30 June 30 June %
R`000 2009 2008 Change
Revenue 5 065 843 4 043 493 25
Cost of sales (4 003 162) (3 171 658) 26
Gross profit 1 062 681 871 835 22
Selling and marketing expenses (694 145) (552 885) 26
Administrative expenses (114 001) (97 656) 17
Other operating expenses (3 883) (3 326) 17
Other income 626 9 447 (93)
Operating profit 251 278 227 415 10
Finance cost (1 864) (2 886) (35)
Finance income 25 622 20 200 27
Profit before income tax 275 036 244 729 12
Income tax expense (86 309) (75 180) 15
Profit for the year 188 727 169 549 11
Attributable to:
Equity holders of the company 177 056 160 768 10
Minority interest 11 671 8 781 33
188 727 169 549 11
Earnings per share (cents) 779.7 707.9 10
Diluted earnings per share (cents) 779.5 707.9 10
ADDITIONAL INFORMATION - AUDITED
Year ended Year ended
30 June 30 June
R`000 2009 2008
Net asset value per share (cents) 2 265 1 825
Ordinary shares (`000):
- In issue 25 805 25 805
- Weighted-average 22 709 22 709
- Diluted weighted-average 22 715 22 709
Capital expenditure 122 904 69 106
Depreciation of property, plant and equipment 39 784 33 866
Amortisation of intangible assets 2 636 1 802
Capital commitments 211 612 170 012
Property operating lease commitments 801 165 775 477
Contingent liabilities 7 434 16 850
CONDENSED GROUP BALANCE SHEET - AUDITED
30 June 30 June
2009 2008
R`000
ASSETS
Non-current assets 377 757 299 971
Property, plant and equipment 344 176 276 070
Intangible assets 22 280 11 274
Deferred income tax assets 11 301 12 627
Current assets 1 340 639 1 304 794
Assets held for sale 2 740 2 740
Inventories 907 712 832 449
Trade and other receivables 82 057 88 228
Cash and cash equivalents 348 130 381 377
Total assets 1 718 396 1 604 765
EQUITY AND LIABILITIES
Shareholders` equity 628 234 505 109
Share capital and reserves 584 555 470 967
Minority interest 43 679 34 142
Non-current liabilities 58 338 43 052
Deferred operating lease liability 54 409 39 330
Deferred profit 1 803 1 855
Borrowings (non interest-bearing) 2 126 1 867
Current liabilities 1 031 824 1 056 604
Trade and other liabilities 1 005 771 1 022 140
Current income tax liabilities 23 703 33 224
Employee benefits 2 350 1 240
Total equity and liabilities 1 718 396 1 604 765
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY - AUDITED
R`000
Attributable to equity holders of the company
Cum.
Share trans-
Treasury Treasury based lation
Share share Share share payments adjust- Retained Minority Total
capital capital premium premium reserve ment 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 year
- - - - - - 160 768 8 781 169 549
Dividend paid
- - - - - - (44 284) (6 714)(50 998)
Currency translation adjustments
- - - - - 3 265 - - 3 265
Closing balance at 30 June 2008
258 (29) 115 817 (83 686) - (4 167) 442 774 34 142 505 109
Profit for the year
- - - - - - 177 056 11 671 188 727
Dividend paid
- - - - - - (61 544) (2 134)(63 678)
Recognition of share based payments
- - - - 475 - - - 475
Currency translation adjustments
- - - - - (2 399) - - (2 399)
Closing balance at 30 June 2009
258 (29) 115 817 (83 686) 475 (6 566) 558 286 43 679 628 234
CONDENSED GROUP CASH FLOW STATEMENT - AUDITED
Year ended Year ended
30 June 30 June
R`000 2009 2008
Cash flows from operating activities
Cash generated from operations 223 577 469 508
Interest paid (1 864) (2 886)
Taxation paid (94 504) (85 568)
Net cash generated from operating activities 127 209 381 054
Cash flows from investing activities
Net investment in assets (122 659) (68 681)
Interest received 25 622 20 200
Net cash used in investing activities (97 037) (48 481)
Cash flows from financing activities
Increase in borrowings 259 222
Dividends paid
- own equity (61 544) (44 284)
- minorities (2 134) (6 714)
Net cash used in financing activities (63 419) (50 776)
Net (decrease)/increase in cash and cash equivalents (33 247) 281 797
Cash and cash equivalents at beginning of year 381 377 99 580
Cash and cash equivalents at end of year 348 130 381 377
CONDENSED GROUP SEGMENTAL ANALYSIS - AUDITED
South Africa
Year ended Year ended
30 June 30 June
R`000 2009 2008
Income statement
Revenue 4 182 746 3 346 359
Operating profit 169 122 178 245
Balance sheet
Segment assets 1 394 443 1 268 995
Segment liabilities 920 939 901 539
Other segment items
Depreciation 35 365 29 751
Amortisation 2 592 1 766
Capital expenditure 111 401 67 914
Other members of common monetary area*
Year ended Year ended
30 June 30 June
R`000 2009 2008
Income statement
Revenue 487 327 411 623
Operating profit 29 503 24 278
Balance sheet
Segment assets 192 720 194 139
Segment liabilities 90 936 111 485
Other segment items
Depreciation 3 028 2 826
Amortisation - -
Capital expenditure 10 210 675
*Includes Namibia, Swaziland and Lesotho
Botswana and Malawi
Year ended Year ended
30 June 30 June
R`000 2009 2008
Income statement
Revenue 395 770 285 511
Operating profit 52 653 24 892
Balance sheet
Segment assets 131 233 141 631
Segment liabilities 78 287 86 632
Other segment items
Depreciation 1 391 1 289
Amortisation 44 36
Capital expenditure 1 293 517
Group
Year ended Year ended
30 June 30 June
R`000 2009 2008
Income statement
Revenue 5 065 843 4 043 493
Operating profit 251 278 227 415
Balance sheet
Segment assets 1 718 396 1 604 765
Segment liabilities 1 090 162 1 099 656
Other segment items
Depreciation 39 784 33 866
Amortisation 2 636 1 802
Capital expenditure 122 904 69 106
NOTES TO THE CONDENSED GROUP ANNUAL FINANCIAL INFORMATION
1. Basis of preparation. The condensed consolidated financial information
("financial information") announcement is based on the audited financial
statements of the group for the year ended 30 June 2009 which have been
prepared in accordance with International Financial Reporting Standards
("IFRS"), 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 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 (2009:
27 June (52 weeks); 2008: 28 June (52 weeks)).
4. Earnings per share. Earnings per share is calculated by dividing the earnings
attributable to shareholders for the year by the weighted average number of 22
709 487 ordinary shares in issue during the year (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 R177.9 million (June 2008: R161.2 million) and a weighted average of 22 709
487 (June 2008: 22 709 487) and fully diluted of 22 715 519 (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 Jun-09 Jun-08 Change
Net profit attributable to the
company`s equity holders 177 056 160 768 10
Loss on sale of assets
after taxation 353 391
Headline earnings 177 409 161 159 10
Headline earnings per share (cents) 781.2 709.7 10
Diluted headline earnings per share (cents) 781.0 709.7 10
6. Declaration of dividend. The board has declared a final dividend (No.33), of
103 cents (June 2008: 128 cents) per ordinary share to all shareholders of
Cashbuild Limited. The dividend per share is calculated based on 25 805 347
(2008: 25 805 347) shares in issue at date of dividend declaration. The total
dividend for the year amounts to 246 cents (2008: 229 cents) a 7% increase year-
on-year.
Date dividend declared: Monday, 14 September 2009
Last day to trade "CUM" the dividend: Friday, 02 October 2009
Date commence trading "EX" the dividend: Monday, 05 October 2009
Record date: Friday, 09 October 2009
Date of payment: Monday, 12 October 2009
Share certificates may not be dematerialised or rematerialised between Monday,
05 October 2009 and Friday, 09 October 2009, both dates inclusive.
On behalf of the board
DONALD MASSON PAT GOLDRICK
Chairman Chief executive
Johannesburg Date: 14 September 2009
NATURE OF BUSINESS
Cashbuild is southern Africa`s largest retailer of quality building materials
and associated products, selling direct to a cash-paying customer-base through
our constantly expanding chain of stores (183 at the end of this reporting
year). 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
met.
INTERNATIONAL FINANCIAL REPORTING STANDARDS
The group is reporting its audited results in accordance with International
Financial Reporting Standards ("IFRS").
FINANCIAL HIGHLIGHTS
Revenue for the year increased by 25% whilst profit increased by 11%. Basic
earnings per share, as well as headline earnings per share improved by 10%. Net
asset value per share has shown a 24% increase, from 1 825 cents (June 2008) to
2 265 cents. Cash and cash equivalents decreased by 9% to R348 million. This
decrease was as a result of an amount of R55 million being paid to suppliers
before the year-end cut-off (normalised 6% increase).
Stores in existence since the beginning of July 2007 (pre-existing stores)
accounted for 18% of the increase in revenue with the remaining 7% increase due
to the 22 new stores the group has opened since July 2007. The increase for the
year has been achieved by good revenue growth during the first three quarters of
the financial year with 4th quarter growth slightly lower in percentage terms.
As mentioned in the fourth quarter update, the reductions in the price of steel
in several months resulted in the prices of steel related products decreasing
accordingly. Steel related products are a large portion of Cashbuild`s business
and this, together with the high level of stock-holding, had a short-term
severely negative effect on gross margins, resulting in gross profit margins for
the year decreasing in percentage terms to 21% (June 2008: 21.6%), but in rand
terms, increasing by a pleasing 22%.
Operational expenses for the year remained well controlled with existing stores
accounting for 17% of the increase and new stores 9%. The total increase for the
year amounted to 26%. The main contributor to the higher than inflation increase
on existing stores, is the continued investment in people to maintain and
improve customer service standards, as well as intensive customer-focused
advertising, undertaken in the run-up to and during the Christmas trading
period.
The effective tax rate for the year of 31% is in line with that of the previous
year.
Cashbuild`s balance sheet remains solid. Stock levels have increased by 9%. This
increase is attributable to the stocking of 13 additional stores since the
previous year-end (accounting for an increase of 10%), with existing stores
decreasing by 1%. Overall stockholding at 84 days (June 2008: 87 days) showed an
improvement on the position as at June 2008. Management of stock will remain a
focus area for the year to come. Trade receivables remain well under control.
During the year Cashbuild opened 13 new stores. Three stores were closed (in
towns where two stores were trading in close proximity). Four stores were
refurbished and four relocated. Cashbuild will continue its store expansion,
relocation and refurbishment strategy in a controlled manner.
PROSPECTS
Management remains optimistic about the top line trading prospects for the next
quarter based on the fact that the first nine trading weeks since year-end have
reported an increase in revenue of 10% on that of the comparable nine weeks.
Gross margins are expected to remain under pressure for the next quarter.
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
QUALITY BUILDING MATERIALS AT THE LOWEST PRICES
www.cashbuild.co.za
Date: 15/09/2009 08:48:07 Produced by the JSE SENS Department.
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