Cashbuild Limited - Cashbuild 3rd Quarter Operational update
Cashbuild Limited
Registration number: 1986/001503/06
(Incorporated in the Republic of South Africa)
Share Code: CSB
ISIN Code: ZAE000028320
(`Cashbuild`)
CASHBUILD 3rd QUARTER OPERATIONAL UPDATE
Further to the trading update published on SENS on 6 May 2005, in line with past
disclosure, Cashbuild herewith provides its quarterly trading update.
Cashbuild has seen the positive revenue growth trend experienced during the
first half of the financial year continue into the third quarter, with revenue
40% higher than that of the prior comparative period. This together with the
improvement during the first half, has resulted in an overall increase in
revenue of 30% for the combined three quarters this financial year.
This improvement is still the result of the continued positive macro-economic
environment, consumer confidence and the strong property culture permeating
throughout southern Africa, as well as Cashbuild`s continued focus on its core
strategies of `always in stock`, `lowest everyday prices`, the free delivery
service and our highly successful campaign based on the slogan of `life offers
no guarantees, but Cashbuild does`.
Transactions through the check out points increased by 28% for the third quarter
whilst the number of units sold increased by 43% over the comparable period last
year. This growth in units sold is indicative of the change in product mix to
more high volume lower margin items during this quarter. As a result of the
aforementioned, margins during the quarter came under pressure and were at
levels lower than the first half and the comparable prior period.
Overheads remain at planned higher levels, with the additional spend on people
cost, advertising, delivery expenses, property expenses and information
technology, remaining the main contributors to this increase.
Cashbuild`s expansion plan is on track with 2 stores opened during the 3rd
quarter and 3 stores refurbished.
Prospects
Revenue growth for the 4th quarter remains positive. Cashbuild expects the
positive trading environment and the strong property culture to continue into
the foreseeable future.
24 May 2005
Sponsor
Nedbank Capital
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