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CASHBUILD LIMITED AUDITED GROUP FINANCIAL RESULTS

Release Date: 28/09/2000 17:36
Code(s): CSB
Wrap Text
CASHBUILD LIMITED
(REGISTRATION NUMBER 1986/001503/06)
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
AUDITED GROUP FINANCIAL RESULTS FOR THE
52 WEEKS ENDED 24 JUNE 2000
SUMMARISED GROUP INCOME STATEMENT

AUDITED AUDITED
YEAR ENDED YEAR ENDED CHANGE
R'000 JUNE 2000 JUNE 1999 %
REVENUE 955,576 924,271 3.4 OPERATING PROFIT BEFORE
EXCEPTIONAL ITEM 1,003 19,896 (95.0)
EXCEPTIONAL ITEM - 3,110 OPERATING PROFIT AFTER
EXCEPTIONAL ITEM 1,003 16,786 (94.0)
NET FINANCING CHARGES (601) (3,714) (83.8)
INCOME BEFORE TAXATION 402 13,072 (96.9)
TAXATION 67 (4,047)
INCOME AFTER TAXATION 469 9,025 (94.8)
MINORITIES' INTEREST (1,687) (1,484) 13.7 (LOSS)/INCOME ATTRIBUTABLE
TO SHAREHOLDERS (1,218) 7,541
NUMBER OF SHARES IN ISSUE ('000S) 23,225 23,225
EARNINGS PER SHARE (CENTS) (5) 33
HEADLINE EARNINGS PER SHARE (CENTS) (5) 45
DIVIDEND PER SHARE (CENTS) - 15
DIVIDEND COVER (TIMES) 2 DIVIDEND COVER BASED ON
HEADLINE EARNINGS(TIMES) 3
DEPRECIATION 9,018 10,633 SUMMARISED GROUP BALANCE SHEET
AUDITED AUDITED
R'000 JUNE 2000 JUNE 1999 NON - CURRENT ASSETS
PROPERTY , PLANT AND EQUIPMENT 50,157 53,887
UNLISTED INVESTMENTS 11,311 6,662
DEFERRED TAXATION 3,306 -
CURRENT ASSETS 242,375 206,942
TOTAL ASSETS 307,149 267,491 EQUITY AND LIABILITIES
SHAREHOLDERS' FUNDS 73,247 71,735
MINORITIES' INTEREST 4,329 5,230
INTEREST BEARING DEBT 2,746 4,401
DEFERRED TAXATION 840 401 CURRENT LIABILITIES
(NON INTEREST BEARING) 225,987 185,724
307,149 267,491
CAPITAL EXPENDITURE 4,874 5,894
NET ASSET VALUE PER SHARE (CENTS) 315 331
CAPITAL COMMITMENTS 501 2,250
CONTINGENT LIABILITIES 60 10,240 SUMMARISED GROUP CASH FLOW STATEMENT
AUDITED AUDITED
R'000 JUNE 2000 JUNE 1999
CASH FLOWS FROM OPERATING ACTIVITIES 30,695 11,683
CASH FLOWS FROM INVESTING ACTIVITIES (7,898) (2,416)
CASH FLOWS FROM FINANCING ACTIVITIES (11,812) (1,470) NET INCREASE IN CASH AND
CASH EQUIVALENTS 10,985 7,797 CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR 17,587 9,790 CASH AND CASH EQUIVALENTS
AT END OF YEAR 28,572 17,587 SUMMARISED GROUP STATEMENT OF CHANGES IN EQUITY
AUDITED AUDITED
R'000 JUNE 2000 JUNE 1999
BALANCE AT BEGINNING OF YEAR 33,451 29,394
ATTRIBUTABLE EARNINGS (1,218) 7,541
DIVIDENDS - (3,484)
BALANCE AT END OF YEAR 32,233 33,451 COMMENTARY BUSINESS PERFORMANCE
SALES INCREASED FOR THE FOURTH CONSECUTIVE YEAR ON THE SAME BASE OF 94 STORES ALBEIT THIS YEAR'S INCREASE WAS ONLY 3.4% ON THE PREVIOUS YEAR. THE FIRST HALF OF THE YEAR PRODUCED A STRONG 12.4% IMPROVEMENT OVER THE SAME PERIOD FOR THE PREVIOUS YEAR.
UNFORTUNATELY THE SECOND HALF DECLINED BY 7%, COMPARED TO THE
SECOND HALF OF THE PREVIOUS YEAR. THIS DECLINE WAS CAUSED BY THE EXTREME WET WEATHER WHICH SEVERELY HAMPERED THE BUILDING INDUSTRY AND NEGATIVELY IMPACTED THE BUILDING MATERIAL SUPPLY TRADE.
DURING THIS PERIOD THE RAND MARGINS CAME UNDER EXTREME PRESSURE AND PROFIT WAS NEGATIVELY IMPACTED ON DUE TO STOCK DIFFERENCES.
CASHBUILD CONTINUES TO GROW PROFITABLE MARKET SHARE IN THE SUPPLY OF KEY STRUCTURAL, BUILDING MATERIAL, PAINT, TILES, PLUMBING AND ELECTRICAL.
SUPPORTED BY WELL FOCUSED MICRO ADVERTISING THE SHOPPING TRANSACTIONS HAVE ALSO INCREASED FOR THE 4TH CONSECUTIVE YEAR NOW AVERAGING 75,000 SPENDING
TRANSACTIONS PER WEEK AND RISING TO 135,000 PER WEEK IN PEAK TRADING PERIODS. THE POSITIVE CASH FLOW ACHIEVED DURING THE YEAR RESULTED IN A SUBSTANTIAL REDUCTION IN FINANCE CHARGES AND A SMALL PRE-TAX PROFIT. SWAZILAND IN PARTICULAR, CONTINUES TO PERFORM STRONGLY, AS REFLECTED BY THE INCREASED MINORITY SHARE OF PROFITS. THE LOSS ATTRIBUTABLE TO SHAREHOLDERS, AMOUNTS TO R1.2M OR 5 CENTS PER SHARE (1999: R7.5M PROFIT OR 33 CENTS PER SHARE). PROSPECTS
SALES DURING THE FIRST QUARTER OF THE NEW FINANCIAL YEAR (JULY TO SEPTEMBER) ARE BETTER BY 20% THAN THE PREVIOUS QUARTER (APRIL TO JUNE) AND CONTINUE TO RISE STRONGLY. HOWEVER SALES HAVE NOT QUITE CAUGHT UP WITH THE HIGH VOLUME EXPERIENCED IN THE CORRESPONDING QUARTER OF LAST YEAR, WHEN THE MARKET WAS MORE FLUSH WITH CASH AS A RESULT OF DEMUTUALISATION PAYOUTS. CASHBUILD HAS RECENTLY IMPLEMENTED A TV ADVERTISING CAMPAIGN WHICH IS ATTRACTING ADDITIONAL SPENDING CUSTOMERS. IN THE MORE RECENT WEEKS, SALES ARE NOW AHEAD OF LAST YEAR. FURTHER EMPHASIS HAS BEEN APPLIED TO GROW MARGINS THROUGH IMPROVED MIX OF HIGHER MARGIN PRODUCTS.
THE GROUP REMAINS FOCUSED ON GROWING PROFITABLE MARKET SHARE. TIGHT MANAGEMENT OF CASH FLOWS AND OVERHEADS AND IN PARTICULAR THE INVESTMENT IN INVENTORY CONTINUES TO RECEIVE ATTENTION TO ENSURE THE CORRECT BALANCE OF INVENTORY TO MEET DEMAND IN INCREASED SALES. STORES
THE STORES ARE WELL MANAGED WITH EXPERIENCED MANAGERS AND ARE LEAD BY A VERY EXPERIENCED OPERATIONS DIRECTOR AND TEN DIVISIONAL MANAGERS WITH A COMBINED 72 YEARS OF EXPERIENCE IN CASHBUILD AND A SOUND GROUNDING IN VOLUME RETAILING. NEW STORES
THE FIRST NEW CASHBUILD STORE IN FOUR YEARS WAS OPENED IN AUGUST OF THE CURRENT YEAR IN SWAZILAND AND IS TRADING STRONGLY. THERE ARE MORE NEW STORES AT VARIOUS STAGES IN THE PLANNING PHASES. DIVIDENDS
AS A LOSS WAS INCURRED FOR THE YEAR, THE BOARD HAS DECIDED THAT NO DIVIDEND WILL BE DECLARED. FOR AND ON BEHALF OF THE BOARD C. STASSEN CHAIRMAN P.K. GOLDRICK CHIEF EXECUTIVE
JOHANNESBURG 27 SEPTEMBER 2000
DIRECTORS: C STASSEN (CHAIRMAN)*, PK GOLDRICK (CHIEF EXECUTIVE) (IRISH), JJ FOUCHE*, CB FOURIE, RA LISTER, D MASSON*, C MOORE*. (*NON-EXECUTIVE) REGISTERED OFFICE CNR AEROTON AND AERODROME ROADS AEROTON, JOHANNESBURG PO BOX 90115, BERTSHAM 2013 TRANSFER SECRETARIES MERCANTILE REGISTRARS 11 DIAGONAL STREET JOHANNESBURG

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