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Audited annual results and dividend declaration for the 53 weeks ended 30 June 2019
Cashbuild Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/001503/06)
Share code: CSB ISIN: ZAE000028320
("Cashbuild" or "the Company")
AUDITED ANNUAL RESULTS AND DIVIDEND DECLARATION
for the 53 weeks ended 30 June 2019
COMPANY PROFILE
Cashbuild is southern Africa's largest retailer of quality
building materials and associated products, selling
direct to a cash-paying customer base through our
chain of stores (315 at the end of this financial year
which includes the one DIY store and 59 P&L Hardware
stores). Cashbuild carries an in-depth quality product
range tailored to the specific needs of the communities
we serve. Our customers are typically home-builders
and improvers, contractors, farmers, traders, as well as
all other customers requiring quality building materials
at the best value.
FINANCIAL HIGHLIGHTS
The Group adopts the retail accounting calendar,
this financial year had 53 weeks and the prior year
had 52 weeks.
Revenue for the year increased by 6%. Revenue for
stores in existence prior to July 2017 (pre-existing stores
- 281 stores) increased with 3% and our 34 new stores
provided 3% of the increase. Gross profit increased
by 6% with gross profit percentage slightly decreasing
from 25.2% to 25.1%. This was achieved in tough trading
conditions with selling price inflation of 3%.
Operating expenses, including new stores, remained
well controlled and increased by only 7% (existing
stores 3% and new stores 4%) resulting in operating
profit increasing by 3%.
Basic earnings per share increased by 2% with headline
earnings per share also increasing by 2% from the prior
year. Cash and cash equivalents decreased by 38%
to R590 million as a result of payments to suppliers
effected prior to year-end close resulting from
the 53rd week. Stock levels, including new stores, have
increased by 2% with overall stockholding at 84 days
(2018: 88 days) at year end. Net asset value per share
has increased by 14%, from 7 561 cents (June 2018)
to 8 636 cents.
During the year, Cashbuild opened 11 new stores
(nine Cashbuild stores and two P&L Hardware stores),
refurbished 26 stores and relocated four Cashbuild
stores. Cashbuild closed five Cashbuild stores,
three P&L Hardware stores and six DIY stores.
Cashbuild will continue its store expansion, relocation
and refurbishment strategy in a controlled manner,
applying the same rigorous process as in the past.
PROSPECTS
Group revenue for the six weeks after year-end has increased by 1%
on the comparable six week period. Management believe trading
conditions will remain extremely challenging in the year ahead. This
information has not been reviewed nor audited by the Company's
auditor.
DECLARATION OF DIVIDEND
The board has declared a final dividend (No. 53), of 420 cents
(June 2018: 346 cents) per ordinary share out of income reserves
to all shareholders of Cashbuild Limited. The dividend per share is
calculated based on 24 989 811 (June 2018: 24 989 811) shares in
issue at date of dividend declaration. Net local dividend amount
is 336 cents per share for shareholders liable to pay Dividends Tax
and 420 cents per share for shareholders exempt from paying
Dividends Tax. The total dividend for the year amounts to 855 cents
(June 2018: 842 cents) a 2% increase on the prior year. Local
Dividends Tax is 20%. Cashbuild Limited's tax reference number
is 9575168712.
Relevant dates for the declaration are as follows: Date dividend
declared: Monday, 2 September 2019; Last day to trade "CUM"
the dividend: Monday, 23 September 2019; Date to commence
trading "EX" the dividend: Wednesday, 25 September 2019; Record
date: Friday, 27 September 2019; Date of payment: Monday,
30 September 2019. Share certificates may not be dematerialised
or rematerialised between Wednesday, 25 September 2019 and
Friday, 27 September 2019, both dates inclusive.
FINANCIAL SUMMARY
Unaudited pro-forma information illustrating the impact of the 53rd
week on the annual results for the year ended 30 June 2019. The
group adopts the retail accounting calendar, which comprises
the reporting period ending on the last Sunday of the month
(2019: 30 June (53 weeks); 2018: 24 June (52 weeks)). Although
Cashbuild has reported financial results for the 53 weeks
to 30 June 2019, it is appropriate and good practice to illustrate
pro-forma information of the comparative 52 week period for
the user of these financial statements. The unaudited pro-forma
information presented below has been prepared for illustrative
purposes only, to indicate how such information compares to
the audited results of the group for the prior 52-week period
ended 24 June 2018. The directors of the company are responsible
for the compilation, contents and preparation of the unaudited
pro-forma financial information below.
Audited Unaudited Audited
June June June
2019 2019 2018 %
R'million (53 wks) 53rd wk (52 wks) (52 wks) Change
Revenue 10 821 199 10 622 10 207 4
Gross profit 2 720 55 2 665 2 568 4
Operating profit 559 52 507 543 (7)
Profit before tax 613 52 561 594 (6)
Net profit attributable to owners of the company 427 36 391 421 (7)
Headline earnings 434 36 398 424 (6)
Earnings per share (cents) 1 881 1 722 1 852 (7)
Diluted earnings per share (cents) 1 881 1 721 1 851 (7)
Headline earnings per share (cents) 1 910 1 751 1 867 (6)
Diluted headline earnings per share (cents) 1 910 1 750 1 866 (6)
Net asset value (NAV) per share (cents) 8 636 8 491 7 561 12
Total dividend per share (cents) 855 855 842 2
The short-form announcement is the responsibility of the Board of directors of Cashbuild and is only a summary of the
information in the full announcement. Any investment decision should be based on the full announcement published
on SENS which is available on Cashbuild's website http://www.cashbuild.co.za/Report_2019. The full announcement
is also available at the Company's registered office for inspection, at no charge, during office hours. Copies of the
full announcement may be requested by contacting Elna Munro on telephone +27 (0)11 248 1500. The JSE link is
https://senspdf.jse.co.za/documents/2019/jse/isse/csb/ye2019.pdf.
Ormonde
Approved by the board on 2 September 2019
Sponsor: Nedbank CIB
www.cashbuild.co.za
3 September 2019
Date: 03/09/2019 07:10:00
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