CSB
CSB
Cashbuild - Fourth Quarter Operational Update
Cashbuild Limited
(Registration number: 1986/001503/06)
(Incorporated in the Republic of South Africa)
JSE share code: CSB & ISIN: ZAE000028320
("Cashbuild" or "the company")
FOURTH QUARTER OPERATIONAL UPDATE
Cashbuild is currently in the process of finalising its results for the year
ended 30 June 2006. In line with past disclosure, Cashbuild provides herewith
its 4th quarter operational update.
On a sales level, the fourth quarter delivered revenue that was 10% higher than
that of the prior comparable period. This increase is on top of one of the
highest growths in revenue in the history of Cashbuild (48% increase on the 4th
quarter 2004), amounting to a compound growth for the two years of 27% and sales
for the full trading year increasing by 22%. New stores contributed 10% to this
increase with the remaining 12% from existing stores. Transactions through the
tills increased by 12% for the quarter (2005: 35%, two year compound: 23%),
whilst the number of units sold decreased by 7% (2005: 51% increase, two year
compound: 25% increase).
Gross profit margins remained solid for most of the quarter with some downward
pressure being experienced towards the end of the quarter.
Due to a number of non-recurring expense items experienced in the earlier part
of the financial year, the increase in operating expenses (excluding the effect
of new stores) for the quarter was back to inflationary levels, compared to the
same quarter of the prior year. Some points of notice on operating expenses are
as follows:
- customer delivery service expenses were, for the first time since
introduction, at budgeted levels for the entire quarter and were, in rand
terms, lower than that of the 3rd quarter 2006;
- advertising expenses were, in line with the stated strategy, lower than
that of the 3rd quarter 2006; and
- staff costs were well contained with the expense for the 2nd half of the
trading year comparing favourably with that of the first trading half.
Four new stores were opened during this quarter bringing the number of new
stores opened for the year to 17, with 150 stores trading at the end of the
financial year. Two stores were refurbished and one relocated during this
quarter.
Prospects
Revenue for the first four trading weeks of the new financial year showed good
growth on figures for the comparable period.
2 August 2006
Sponsor
Nedbank Capital
Date: 02/08/2006 03:12:19 PM Produced by the JSE SENS Department
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