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Annual Results and Dividend Declaration for the year ended 25 June 2023
Cashbuild Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/001503/06)
Share code: CSB
ISIN: ZAE000028320
("Cashbuild" or "the Company" or "the Group")
Annual Results and Dividend Declaration for the year ended 25 June 2023
- Revenue R10.7 billion down 4%
- Headline earnings R271 million down 38%
- Net asset value per share 8 068 cents down 14%
- Final Dividend 332 cents down 51%
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 (318 at the end of this reporting period
which includes 52 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. Cashbuild has built its credibility and reputation by consistently offering its customers quality
building materials at the best value through a purchasing and inventory policy that ensures customers'
requirements are always met.
FINANCIAL HIGHLIGHTS
Revenue for the year decreased by 4% when compared to the previous financial year. Revenue for stores
in existence prior to July 2021 (pre-existing stores - 308 stores) decreased by 6% and our 10 new stores
contributed 2% growth. Gross profit decreased by 8% with gross profit margin percentage decreasing
from 26.3% to 25.4%. Selling price inflation was 5.4% at the end of June 2023 when compared to June
2022.
Comparable operating expenses, excluding the P&L Hardware Goodwill impairment in the current year
and the looting effects of the prior year, increased by 5% (existing stores increasing by 4% and new
stores contributed a 1% increase). On a statutory basis, operating expenses increased by 20% (existing
stores increasing by 19% and new stores contributed a 1% increase). The decrease in revenue together with
increasing costs resulted in the operating profit decreasing by 73% (53% on a comparable
basis mentioned earlier). Basic earnings per share decreased by 78% with headline earnings
per share also decreasing by 37% from the prior year.
The high effective tax rate of 35.5% for the year is as a result of the impairment of the P&L Hardware
Goodwill however still lower than the prior year due to withholding tax on inter-group dividends paid.
Cash and cash equivalents decreased to R1 583 million due to higher stock levels in the current year and
the repurchase of shares. Stock levels, including new stores have increased by 12% with stockholding at
90 days (June 2022: 81 days) at year end. Net asset value per share decreased by 14%, from 9 350 cents
(June 2022) to 8 068 cents.
During the year, Cashbuild opened 6 new Cashbuild stores, refurbished 18 Cashbuild and 2 P&L Hardware
stores. 4 Cashbuild stores and 1 P&L Hardware store were closed during the year. The closures relate to
1 looted store, 1 as a result of a relocation and the remainder due to non-performance which included the
last 2 Zambian stores. Cashbuild will continue its store expansion, relocation, and refurbishment strategy
in a controlled manner, after considering its continuously evolving feasibility process.
PROSPECTS
Group revenue for the six weeks subsequent to period end is 1% lower than the prior year's comparative
six-week period. Management expects trading conditions to remain challenging. This information has not
been reviewed nor audited by the Company's auditor.
FINANCIAL SUMMARY
25 June 26 June %
R'million 2023 2022 change
Revenue 10 653 11 145 (4)
Profit 233 876 (73)
Earnings per share (cents) 456.9 2 094.7 (78)
Headline earnings per share (cents) 1 221.5 1 929.4 (37)
Final dividend per share (cents) 332 677 (51)
DECLARATION OF DIVIDEND
The Board has declared a final dividend (No. 61) of 332 cents (June 2022: 677 cents) per ordinary share,
out of income reserves, excluding the impact of the impairment on the P&L Hardware Goodwill, to all
shareholders of Cashbuild Limited. The dividend per share is calculated based on 23 900 647 (June 2022:
24 989 811) shares in issue at the date of the dividend declaration. The net local dividend amount is
265.6 cents per share for shareholders liable to pay Dividends Tax and 332 cents per share for
shareholders exempt from paying Dividends Tax. The total dividend for the year amounts to 732 cents
(June 2022: 1 264 cents). Local Dividends Tax is 20%.
Cashbuild Limited's tax reference number is 9575168712.
Date dividend declared: Tuesday, 29 August 2023
Last day to trade "CUM" the dividend: Tuesday, 19 September 2023
Date to commence trading "EX" the dividend: Wednesday, 20 September 2023
Record date: Friday, 22 September 2023
Date of payment: Tuesday, 26 September 2023
Share certificates may not be dematerialised or rematerialised between Wednesday, 20 September 2023
and Friday, 22 September 2023, both dates inclusive.
Johannesburg
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Approved by the Board on 29 August 2023
Released 30 August 2023
This short form announcement is the summarised version of the audited financial results for the year
ended 25 June 2023 of Cashbuild Limited and its subsidiaries and, as such, it does not contain full or
complete details pertaining to the Group's financial statements. This short-form announcement has not
been audited by the external auditor, is the responsibility of the Board of directors of Cashbuild and is
prepared based on the audited financial statements. Any investment decisions should be based on the audited
financial statements as the information in this announcement does not provide all of the details. The
financial statements are available on Cashbuild's website www.cashbuild.co.za and on the JSE
cloudlink https://senspdf.jse.co.za/documents/2023/jse/isse/CSB/ye2023.pdf. The financial statements
have been audited by the company's external auditor, Deloitte & Touche who expressed an unmodified
opinion on the financial statements. Shareholders are advised that, in order to obtain a full understanding
of the nature of the auditor's engagement and more specifically the nature of the information that has
been audited, they should obtain a copy of the auditor's report included in the financial statements.
The financial statements are also available on request by contacting Elna Munro on
telephone +27 11 248 1500 or email emunro@cashbuild.co.za.
Date: 30-08-2023 07:10:00
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