| Wed 22 Apr 2020, 16:00 | | CASHBUILD LIMITED - Third quarter operational update - FY2020 (January 2020 to March 2020) |
|
Third quarter operational update - FY2020 (January 2020 to March 2020):
Third quarter operational update - FY2020 (January 2020 to March 2020)
CASHBUILD LIMITED
(Registration number: 1986/001503/06)
(Incorporated in the Republic of South Africa)
JSE share code: CSB ISIN: ZAE000028320
(“Cashbuild” or “the Group”)
THIRD QUARTER OPERATIONAL UPDATE – FY 2020 (January 2020 to March 2020)
Cashbuild herewith provides its voluntary quarterly operational update.
Revenue for the third quarter for the Cashbuild Group was down 1% on the third quarter of the prior financial
year, with the 21 new stores opened since 1 July 2018 reporting 3% growth, offset by the 4% decrease reported
by the 297 existing stores. This, together with the results reported for the first half, equates to a decrease in
revenue for the year to date of 1%.
Transactions through the tills during the third quarter for the Group decreased by 4% to that of the comparative
period, with new stores contributing 3% growth while existing stores decreasing by 7%.
Selling price inflation was 2% at the end of March 2020 when compared to March 2019.
A revenue performance breakdown per operating segment is reflected in the following table:
Revenue performance 3rd Quarter FY2020 versus 3rd Quarter FY2019
Operating Segment Percentage Total New Existing
of Total % % %
Sales
Cashbuild South Africa Half Year 79 - 3 (3)
Q3 79 (1) 3 (4)
Cashbuild Common Monetary Areas Half Year 5 (4) - (4)
Q3 5 (2) - (2)
Cashbuild Other* Half Year 4 2 2 -
Q3 5 11 3 8
P&L Hardware South Africa Half Year 12 (6) 3 (9)
Q3 11 (8) 2 (10)
Total Group Half Year 100 (1) 3 (4)
Q3 100 (1) 3 (4)
*Botswana, Malawi and Zambia
During the third quarter the Group opened two P&L Hardware stores and closed five stores (four Cashbuild
stores and one P&L Hardware store). The Group also relocated one Cashbuild store and refurbished one
Cashbuild store, bringing the total number of stores trading at the end of the quarter to 318.
A store breakdown by segment is reflected in the following table:
Number of stores – end of quarter Percentage Total New Existing
three of total
Cashbuild South Africa 71 226 15 211
Cashbuild Common Monetary Areas 5 16 0 16
Cashbuild Other * 5 14 1 13
Cashbuild DIY Pilot stores - 1 - 1
P&L Hardware South Africa 19 61 5 56
Total Group 100 318 21 297
*Botswana, Malawi and Zambia
COVID-19 and lockdown update
Retailing of building materials has not been classified as essential services and therefore all Cashbuild and
P&L Hardware stores as well as the Support Office, with the exception of the six stores in Swaziland, the two
stores in Malawi and the three stores in Zambia, have been closed for the period of the lockdown.
Cashbuild has paid its staff’s remuneration in full during the initial period of the lockdown and intends to
continue to do so under the extended lockdown period.
Cashbuild has initially paid 50% of its rental obligation for April 2020 and will enter into negotiations with
landlords once the lockdown has been lifted to arrive at a mutually acceptable settlement for this unique event.
The Group’s balance sheet contains no debt (excluding the effects of IFRS 16) and current working capital
credit lines in place with the Group’s bankers are expected to be sufficient for the impacts of the lockdown and
extended lockdown.
Following revised Regulations being published on 16 April 2020, Cashbuild stores in South Africa have
opened with reduced trading hours from Saturday, 18 April 2020 and under strict guidelines, only allowing
sales of hardware, components and supplies required by entities engaged in the provision of essential services
for any projects related to the provision of water, electricity or other essential services and supplies required by
qualified tradespersons solely for the purpose of emergency repairs at residential homes.
The above information has not been reviewed or reported on by Cashbuild’s auditors.
22 April 2020
Sponsor
Nedbank Corporate and Investment Banking
Date: 22-04-2020 04:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
