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CSB
CSB
Cashbuild Limited - Media Announcement: Year-End Results
Cashbuild Limited
Registration number: 1986/001503/06
(Incorporated in the Republic of South Africa)
Share Code: CSB & ISIN Code: ZAE000028320
("Cashbuild" or "the company")
CASHBUILD YEAR-END RESULTS
Cashbuild continues to invest in the business with an increase of 30% in capital
investment, equating to R77.35 million during the last financial year. Revenue
for the year increased by 23%, and profit increased by 7%. Headline earnings
showed an increase of 6% and net asset value per share is up 33%
A total of 17 new stores were opened throughout the company during the year
under review which is a record in the 27 year history of the company. Six
stores were refurbished and three relocated. To date there are 152 stores
trading. The group"s strategy of expansion within southern Africa has not
changed. It is well planned and only approved when strict operational and
financial criteria are met.
Cashbuild"s commitment to investment in the communities continues. In the past
12 months the company has donated building materials to the value of over R 1.7
million to nearly 170 schools for the construction and extension of classrooms .
Cashbuild employees come from the communities where they trade and enjoy the
security of working for a company that promotes from within, rewarding and
investing in its people. Whilst promotion from within the ranks is preferable,
company growth plans will not be hindered by the shortage of suitably skilled
people ready to take up the challenge. The company now employs a 3,162 strong
work-force, who own 10% of the company via the employee share trust and enjoy
the benefits of participating in the profits via dividend flow.
Operating costs in the second half of the year were well contained. The non-
recurrence of once-off costs, i.e. brand TV advertising, and the change from a
free national delivery service to a local service to customers contributed to
the majority of the cost savings.
An experienced operations manager has been employed for the neighbouring
countries to focus on growing markets and the company is already seeing the
benefits of this appointment particularly in Botswana.
The challenges Cashbuild encountered with its IT systems have been well managed
and not allowed to negatively impact its customers, store operations, suppliers,
or the revenue growth.
This IT issue has been confined to support office and well controlled.
An independent review of the current status of the IT within the business was
commissioned at the end of the financial year. The findings of the review have
confirmed management"s belief regarding the long-term non-feasibility of its IT
solution, currently in place. A comprehensive strategic plan has been developed
to address this matter.
Since the year-end Cashbuild has opened two new stores and relocated one. Sales
for the first 9 trading weeks have increased by 20% which equated to an
impressive 108% growth for the corresponding period of 2004. Cashbuild will
continue to grow profits through sales growth in existing stores, opening
additional stores and continuing to refit existing stores on a strategic plan
and relocating old stores where appropriate; addressing Botswana"s recent past
poor performance; containing costs within the organisation, as per their proven
business model; and the on-going development and rewarding of their people.
Cashbuild has not experienced any significant shortage of building material
products; however the shortage of skilled and qualified artisans is of serious
concern to the building industry.
Cashbuild is an established company with a proven long-term track record. In a
recently published review of listed companies - FM Top Companies 2006 -
Cashbuild was rated 2nd in the category of Top Performers on the JSE.
19 September 2006
Date: 19/09/2006 03:35:09 PM Produced by the JSE SENS Department
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