Cashbuild - Trading update
CASHBUILD LIMITED
(Registration number: 1986/001503/06)
(Incorporated in the Republic of South Africa)
JSE share code: CSB ISIN: ZAE000028230
(`Cashbuild` or `the company`)
TRADING UPDATE
Cashbuild is currently finalising its results for the year ended 30 June 2005.
In line with past disclosure, Cashbuild provides herewith, its 4th quarter
trading update and an indication of its performance for the past financial year.
Cashbuild`s shareholders are advised that headline earnings for the year ended
30 June 2005 (in rand terms) are expected to be 30% to 45% higher than those of
the comparable prior period. This information has not been reviewed or reported
on by the company`s auditors. The company`s results for the year ended 30 June
2005 are expected to be published during the week commencing 26 September 2005.
On a sales level, the fourth quarter continued the strong growth trend seen
during the prior quarter. Sales were up by 48% compared to the fourth quarter of
the prior financial year. New stores contributed 10% to this increase with the
remaining 38% from existing stores. This resulted in the sales for the year
being 35% higher that that of the prior year. Transactions through the tills
increased by 35% for the quarter, whilst the number of units sold increased by
51%.
Overheads were at higher levels due to Cashbuild`s strategy of:
- free local deliveries,
- investment in extra employees to support our future expansion plans,
- extended shopping hours, and
- expenditure on the new IT infrastructure.
Five new stores were opened during this quarter bringing the number of new
stores opened for the year to 11, with 134 stores trading at the end of the
financial year. Two stores were refurbished during this quarter.
Accounting for operating leases
Cashbuild has adhered to the requirements of the circular issued by the South
African Institute of Chartered Accountants (SAICA), number 7/2005 regarding
operating leases, the impact of which was not material in respect of current and
prior year results.
Prospects
Revenue growth for the first twelve trading weeks of the new financial year
continues to show strong growth on the comparable period.
Sponsor
Nedbank Capital
Date: 23/09/2005 02:21:11 PM
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