Wrap Text
Interim results and dividend declaration for the six months ended 26 December 2021
Cashbuild
(Incorporated in the Republic of South Africa)
(Registration number: 1986/001503/06)
Share code: CSB ISIN: ZAE000028320
("Cashbuild" or "the Company")
INTERIM RESULTS AND DIVIDEND DECLARATION
for the six months ended 26 December 2021
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 (317 at the end of this reporting period, which
includes 54 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
Revenue for the period declined by 12%. Revenue for stores
in existence prior to July 2020 (pre-existing stores - 305 stores)
declined with 14% and our 12 new stores contributed 2%
growth. Gross profit decreased by 11% with gross profit
margin percentage increasing from 26.4% to 26.6% mainly
due to the store looting stock recovery claim net of write
off. Selling price inflation for December 2021 was 8.8%
compared to December 2020. Operating expenses,
including new stores, were well controlled considering
the revenue decline, reducing by 10% (existing stores 12%
partially offset by a 2% increase in new stores) resulting in
the operating profit decreasing by 14%. Basic earnings per
share declined by 19% with headline earnings per share
also declining by 27% from the prior period.
Cash and cash equivalents is 33% lower than the prior period
mainly as a result of the substantial final dividend paid and
costs of looted stores not yet recovered from insurance.
Stock levels, including new stores have increased
by 10% with stockholding at 79 days (December 2020:
68 days; June 2021: 74 days) at period end. Net asset
value per share decreased by 5%, from 9 640 cents
(December 2020) to 9 175 cents.
During the period, Cashbuild opened 2 new
Cashbuild stores, refurbished 5 Cashbuild stores and
relocated 1 Cashbuild store. 3 looted Cashbuild stores
and 1 P&L Hardware store were closed at the expiration
of their lease agreements. 25 Cashbuild stores
and 3 P&L Hardware stores that were looted have
since been reopened. Cashbuild will continue its store
expansion, relocation and refurbishment strategy in a
controlled manner, applying an even more rigorous
process, due to the Covid-19 pandemic and associated
economic uncertainties.
PROSPECTS
Group revenue for the six weeks subsequent to period end
is 10% lower than the comparative prior six weeks period.
Management expects trading conditions to remain
uncertain due to Covid-19 and its economic impact. This
information has not been reviewed nor audited by the
Company's auditor.
DECLARATION OF DIVIDEND
The board has declared an interim dividend (No. 58), of 587 cents
(2020: 724 cents) per ordinary share out of income reserves to all
shareholders of Cashbuild. The dividend per share is calculated
based on 24 989 811 (2020: 24 989 811) shares in issue at date of
dividend declaration. Net local dividend amount is 469.6 cents per
share for shareholders liable to pay Dividends Tax and 587 cents
per share for shareholders exempt from paying Dividends Tax. Local
dividend tax is 20%.
Cashbuild's tax reference number is 9575168712.
Date dividend declared: Tuesday, 1 March 2022
Last day to trade "CUM" the dividend: Tuesday, 22 March 2022
Date to commence trading "EX" the dividend: Wednesday, 23 March 2022
Record date: Friday, 25 March 2022
Date of payment: Monday, 28 March 2022
Share certificates may not be dematerialised or rematerialised
between Wednesday, 23 March 2022 and Friday, 25 March 2022,
both dates inclusive.
INDEPENDENT REVIEW BY THE AUDITOR
These summary consolidated interim financial statements were derived
from the reviewed consolidated interim financial statements for the six
months ended 26 December 2021. The independent auditor's review
has been conducted in accordance with International Standards on
Review Engagements 2410, Review of Interim Financial Information
Performed by the Independent Auditor, PricewaterhouseCoopers
Inc., and their unmodified review report is available for inspection
at the Company's registered office. Any reference to future financial
performance included in this announcement has not been reviewed
or reported on by the Group's external auditors. The auditor's review
report does not necessarily report on all of the information contained
in this announcement/financial results. Shareholders are therefore
advised that in order to obtain a full understanding of the nature of
the auditor's engagement they should obtain a copy of the auditor's
review report together with the accompanying financial statements
from the registered office.
Johannesburg
Sponsor:
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Approved by the board on 1 March 2022
Released 2 March 2022
This short-form announcement is the responsibility of the Board of directors of
Cashbuild and is prepared based on the reviewed interim results being the full
announcement. Any investment decision should be based on the full announcement
available on Cashbuild's website www.cashbuild.co.za and on the JSE's website at
https://senspdf.jse.co.za/documents/2022/jse/isse/CSB/ie2021.pdf.
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 11 248 1500.
Six months
ended Six months ended
26 December 27 December Year ended
R'million 2021 2020 % change 27 June 2021
Revenue 5 889 6 695 (12) 12 616
Operating profit 492 576 (14) 1 039
Earnings per share (cents) 1 294.8 1 594.7 (19) 2 935.7
Headline earnings per share (cents) 1 130.4 1 540.7 (27) 2 872.6
Dividend per share (cents) 587 724 (19) 2 935
CIVIL UNREST AND LOOTING EFFECTS
During the period, 36 (32 Cashbuild and 4 P&L Hardware) stores across the Group were impacted by the
unrest and looting in July 2021. Stores were looted and damaged which led to the scrapping of various
categories of property, plant and equipment (R20.4 million) and inventory (R136 million). Cashbuild
has insurance cover for such events to minimise losses to the Group and submitted insurance claims of
R143 million for inventory, R71 million for property, plant and equipment and R65 million for business
interruption to its respective insurers.
The insurance recoveries expected have been recognised in cost of sales (R143 million) and other income
(R71 million). Cashbuild expects that compensation for business interruption would be finalised after
the full-year results of the Group have been determined. No receivable has been recognised for the
business interruption due to not finalising the claim value which therefore is not virtually certain.
The Group received interim payments for its asset claims of R132 million on 23 November 2021 and
R82 million (VAT inclusive) after period end.
Quality building materials at the best value www.cashbuild.co.za
Date: 02-03-2022 07:10:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
