| Wed 21 Aug 2002, 0:00 | | Cashbuild Limited - Audited Annual Financial Resul |
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CASHBUILD LIMITED - AUDITED ANNUAL FINANCIAL RESULTS FOR THE 52 WEEKS ENDED 29
JUNE 2002
CASHBUILD LIMITED
Registration number: 1986/001503/06
(Incorporated in the Republic of South Africa)
Listed on the JSE Securities Exchange
JSE Sharecode: CSB
ISIN Code : ZAE000028320
Highlights
* 75% increase in headline earnings per share
(calculated on a 52-week comparative basis)
* 93% increase in cash-on-hand
* R1-billion in sales
GROUP INCOME STATEMENT
Audited R`000
52 weeks ended 53 weeks ended
29 June 30 June %
2002 2001 Change
Revenue 1,122,692 982,544 14%
Cost of sales 873,572 771,497 13%
Gross profit 249,120 211,047 18%
Operating expenses 216,078 186,337 16%
Operating profit before
exceptional item 33,042 24,710 34%
Exceptional item - 5,126
Operating profit before
financing income 33,042 19,584 69%
Net financing income 5,789 1,615 258%
Profit before taxation 38,831 21,199 83%
Taxation 11,847 8,447 40%
Profit after taxation 26,984 12,752 112%
Minority interest 2,955 2,108 40%
Attributable earnings 24,029 10,644 126%
Headline adjusting items:
Loss on sale of assets
after taxation 931 79
Exceptional item - 5,126
Headline earnings 24,960 15,849 57%
Earnings per share (cents)
Headline 108.9 68.2 60%
Diluted headline 107.5 68.2 57%
Basic 104.9 45.8 129%
Diluted basic 103.5 45.8 126%
Dividend per share (cents) 35.0 24.0 46%
Number of shares
in issue (`000s) 23,225 23,225
Weighted number of shares
(`000s) 22,911 23,225
Fully diluted number of
shares (`000s) 23,225 23,225
CONDENSED GROUP BALANCE SHEET
Audited R`000 29 June 30 June
2002 2001
Assets
Non-current assets 56,924 54,425
Property, plant & equipment 50,737 47,359
Loans & unlisted investments 3,625 4,163
Deferred taxation 2,562 2,903
Current assets 361,223 265,450
Inventories 198,238 161,963
Trade & other receivables 39,957 37,874
Tax paid in advance 438 2,120
Cash resources 122,590 63,493
Total assets 418,147 319,875
Equity and liabilities
Shareholders` funds 95,179 79,176
Minority interest 8,266 6,431
Non-current liabilities 349 531
Interest-bearing borrowings 63 214
Deferred taxation 286 317
Current liabilities 314,353 233,737
Short-term borrowings 115 65
Tax liability 1,887 1,178
Trade & other liabilities 312,351 232,494
Total liabilities 314,702 234,268
Total equity and liabilities 418,147 319,875
Capital expenditure 13,015 10,216
Depreciation 8,241 9,058
Net asset value
per share (cents) 421 341
Capital commitments 4,390 579
Contingent liabilities 3,364 6,275
CONDENSED GROUP CASH FLOW STATEMENT
Audited R`000
52 weeks 53 weeks
ended 29 June ended 30 June
2002 2001
Net cash inflows from operating
activities 74,063 56,848
Net cash outflows from investing
activities 12,412 8,013
Net cash outflows from financing
activities 2,554 2,826
Net increase in cash and
cash equivalents 59,097 46,009
Cash and cash equivalents
at beginning of year 63,493 17,484
Cash and cash equivalents
at end of year 122,590 63,493
GROUP STATEMENT OF CHANGES IN EQUITY
Audited R`000
Foreign
currency Distribu-
Share Share translation table
capital premium reserve reserve Total
Opening balance
at 25 June 2000 232 38,052 2,730 32,233 73,247
Effects of changes
in accounting
policies (4,715) (4,715)
Restated balance at
25 June 2000 232 38,052 2,730 27,518 68,532
Attributable earnings
for the year 11,307 11,307
Effects of changes in
accounting policies (663) (663)
Restated balance at
1 July 2001 232 38,052 2,730 38,162 79,176
Attributable earnings
for the year 24,029 24,029
Dividend paid (5,574) (5,574)
Costs of shares
purchased (6) (2,446) (2,452)
Closing balance at
29 June 2002 226 35,606 2,730 56,617 95,179
NOTES TO THE GROUP`S ANNUAL FINANCIAL INFORMATION.
1. ACCOUNTING POLICIES: The group`s financial information has been extracted
from the audited group annual financial statements, which have been prepared in
accordance with Statements of Generally Accepted Accounting Practice in South
Africa. The accounting policies used in the preparation of the annual financial
statements are consistent with those used in the annual financial statements for
the year ended 30 June 2001, except that Statement AC 135 in respect of
investment property and Statement AC116 in respect of employee benefits have
been adopted. Statement AC116 has been adopted in line with the group`s policy
to pay long-service awards to employees who reach specified benchmark periods of
service. These policy changes have been effected by a restatement of prior year
results (after tax) as follows:
June June
R`000 2002 2001
Decrease in opening distributable
reserve 5 378 4 715
Decrease in attributable earnings 603 663
Decrease in closing distributable reserve 5 981 5 378
2. AUDITED RESULTS: PricewaterhouseCoopers Inc. has audited the group annual
financial statements. The unqualified audit report, together with the annual
financial statements, are available for inspection at the company`s registered
office.
3. SHARES PURCHASED BY SUBSIDIARY: The company has purchased 631,296 ordinary
shares of Cashbuild Limited through its subsidiary Cashbuild (SA) (Pty) Limited.
The company does not intend cancelling these shares and will place the shares in
The Cashbuild Share Incentive Trust to cater for options already issued.
Number of shares reconciliation:
Shares in issue/Diluted number of shares 23 224 812
Weighted number of shares repurchased 313 480
Weighted number of shares in issue 22 911 332
4. EARNINGS PER SHARE: Basic earnings per share is calculated by dividing the
earnings attributable to shareholders by the weighted average number of 22 911
332 ordinary shares in issue during the period (2001 financial year: 23 224 812
shares).
To calculate the headline earnings per share, the earnings attributable to
shareholders is adjusted for the loss on sale of assets and the exceptional
item.
COMMENTS
Nature of business
Cashbuild is southern Africa`s largest retailer of building materials and
associated products, selling direct to a cash-paying customer base through its
constantly expanding chain of stores (102 at the end of the reporting year).
Cashbuild carries an in-depth quality product range tailored to the specific
needs of the communities it serves. Customers are typically home builders and
improvers, contractors, farmers, traders and, increasingly, large construction
companies and government-related infrastructure developers, as well as all
discerning customers looking for quality building materials at lowest prices.
Financial highlights
For the first time, Cashbuild exceeded R1-billion in sales during the year under
review, despite a flat first half due to management`s decision to withdraw all
advertising while implementing systems for improved efficiencies and
reinforcing core strategies such as always-in-stock, delivery services for
customers of all stores, and a commitment to giving the lowest prices at all
times. The success of these measures became evident during the second half of
the year when the company achieved a substantial 34% increase in sales. During
the second half, sales by established stores improved by 23%, with an 11%
contribution by new stores. These increases have been achieved without
compromising margins. The contribution to turnover by newly opened stores was a
creditable 7% for the full year.
Cashbuild has continued to control shrinkage to an enviable 0,4% of sales. The
effective utilisation of excess cash has led to a significant increase in
interest income.
Management is consequently proud to be able to announce a 75% increase in
headline earnings on a 52-week comparative basis. The additional 53rd week in
the prior financial year 2001, provided a 6 cents per share contribution to
headline earnings. The increase in headline earnings is 60% when calculated
using the full 53-week 2000-2001 financial year.
Cash from operations and working capital management resulted in a cash balance
of R122,6-million at year-end, compared to R63,5-million last year, a 93%
improvement. These cash resources will be used to fund expansion, store
refurbishments, and store relocations, at present being planned.
Cashbuild has opened 11 new stores during the past two years. All new stores
have made a positive contribution to operating profit for this trading year
without the expense of additional head office infrastructure.
Business expansion
During the past 12 months Cashbuild has opened stores in Edenvale, Eshowe, Louis
Trichardt, Gaberone, Naas (Mpumalanga) and Pretoria West. All new stores in
operation have contributed to profitability during their first year of trading.
Prospects
With this year`s headline eps of 108,9 cents and the achievement of R1-billion
in turnover, management is confident that it will be able to grow profits
sustainably into the future. The efficiency improvement mechanisms and core
strategies mentioned earlier will continue to contribute to sustained earnings
growth. This will be achieved through improved sales at consistent margins and
the commitment of highly motivated personnel incentivised by progressive
participation and remuneration structures.
In addition to this internally generated growth, Cashbuild intends to open 10
new stores every year, with sites selected in line with our customary strict
operational and financial criteria. By the end of this financial year, five new
sites had been identified and plans drawn up. These stores are expected to be
operational by December this year.
Cashbuild continues to focus on improving its market share through the increased
provision of building materials to large construction companies and government-
related infrastructure developers.
DECLARATION OF DIVIDEND
The board has declared a dividend (No. 19), of 35 cents per ordinary share
(2001: 24 cents) to all shareholders of Cashbuild Limited. To comply with the
procedures of STRATE, the following dates are applicable:
Date dividend declared: 20 August 2002
Last day to trade "CUM" the dividend: 6 September 2002
Date commence trading "EX" the dividend: 9 September 2002
Record date: 13 September 2002
Date of payment: 16 September 2002
Share certificates may not be dematerialised or rematerialised between Monday 9
September 2002 and Friday 13 September 2002, both dates inclusive.
On behalf of the board
Donald Masson Pat Goldrick
Chairman Chief Executive
20 August 2002
WITH 102 STORES IN SOUTHERN AFRICA, WE ARE PROUDLY ACCESSIBLE TO THE PEOPLE
Directors: D Masson* (Chairman), PK Goldrick (Chief executive) (Irish), CB
Fourie, CT Daly, FM Rossouw*. *Non-executive.
Company secretary: Alan C Smith.
Visit our website at: www.cashbuild.co.za
Registered office: Cnr Aeroton and Aerodrome Roads, Aeroton Johannesburg; PO Box
90115, Bertsham 2103.
Transfer secretaries: Computershare Investor Services Limited, 11 Diagonal
Street, Johannesburg 2001, PO Box 1053, Johannesburg 2000.
Date: 21/08/2002 12:02:14 PM Produced by the JSE SENS Department
