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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
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11 DIAGONAL STREET
JOHANNESBURG