CSB
CSB
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 3rd QUARTER OPERATIONAL UPDATE
In line with past disclosure, Cashbuild herewith provides its quarterly trading
update.
Revenue growth for the third quarter increased by 13% in addition to the 40%
growth that was achieved in the corresponding quarter of the prior year,
resulting in an overall increase in revenue of 28% for the year to date.
Accordingly, the two-year compound growth equates to 26%. The 24 new stores
opened since 1 July 2004 contributed 11% to the quarterly increase.
Six of our 20 divisions were negatively influenced by the abnormal wet weather
experienced, whilst two Botswana divisions experienced a decline in revenue of
20% as a result of the poor state of the Botswana economy and lack of government
infrastructure spending. However, the fact that Cashbuild"s three Gauteng
divisions and the Namibian division grew by 27% and 50% respectively, is very
encouraging.
Transactions through the tills increased by 21% for the third quarter whilst the
number of units sold only increased by 2% over the comparable quarter last year.
This is as a direct result of lower brick sales, which sales have been
negatively influenced by the wet weather.
Percentage margins during the quarter improved by one percentage point on last
years corresponding quarter.
Cashbuild"s expense base increase has slowed down from the 43% experienced in
the first half of the 2006 financial year to an increase of approximately 32% in
the third quarter, reducing the trend to 39% for the year to date. Management
expects this trend to be maintained.
Cashbuild"s expansion plan continues to be on track, with 2 stores opened during
the 3rd quarter as well as one store relocation.
Prospects
Revenue growth for the 3 trading weeks of the 4th quarter has already shown an
improvement on the 3rd quarter growth. Furthermore, management remains positive
regarding the remainder of the financial year and the full year results.
19 April 2006
Sponsor
Nedbank Capital
Date: 19/04/2006 05:00:14 PM Produced by the JSE SENS Department
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