Cashbuild Limited - Cashbuild 3rd Quarter Operational Update

Cashbuild Limited - Cashbuild 3rd Quarter Operational Update                    
Cashbuild Limited                                                               
Registration number: 1986/001503/06                                             
(Incorporated in the Republic of South Africa)                                  
Share Code: CSB                                                                 
ISIN Code: ZAE000028320                                                         
CASHBUILD 3RD QUARTER OPERATIONAL UPDATE                                        
In line with its commitment to full and timeous disclosure, Cashbuild provides, 
for the first time to shareholders, an update on its trading performance for the
third quarter ended March 2004. It is the intention of management to provide    
quarterly updates for the foreseeable future.                                   
Cashbuild"s trading results continue to show satisfactory growth, with year-on- 
year growth in turnover of 17.5% being achieved in the 3rd quarter, thus        
building on Cashbuild"s 16% improvement in the first half of the year. Of       
particular significance is the fact that growth continued to be achieved both in
the existing stores (up 9.3%), with new stores contributing 8.2%. These         
improvements were supported by the continued favourable macro-economic          
environment and the property culture arising from government drives to increase 
home ownership and private homeowners striving for larger and better housing.   
The deflationary environment experienced in the first half of the year continued
to play a role in the 3rd quarter. This environment has continued to adversely  
impact percentage margins as Cashbuild maintained lower selling prices on stock 
purchased at pre-deflationary prices. This strategy of lower selling prices     
continues to bear fruit with growth in unit sales, number of customers shopping 
at Cashbuild and market share, and from growing rand margins over the quarter.  
The number of customers shopping at Cashbuild stores rose by 22% in the quarter,
achieved through growth in existing stores of 10.4% and an 11.6% contribution   
from new stores. The deflationary environment has abated in the 4th quarter with
steel and timber price increases leading the way.                               
Recent weakness in the Botswana Pula, particularly with the 8% devaluation of   
the currency by the government in February 2004, negatively impacted on the     
results of Cashbuild"s Botswana subsidiary.                                     
Operating costs remain well managed and controlled.                             
Interest income from excess cash held in the business continues to be adversely 
affected by lower interest rates. The company will continue to utilise its      
excess cash for expansion, refurbishments, relocations and dividend flows.      
Cashbuild"s balance sheet remains solid with working capital well managed.      
Cashbuild continues to expand conservatively, with two new stores opened during 
the third quarter and one existing store refurbished. This is in addition to the
six new stores and two refurbished stores already completed in the first half.  
Johannesburg                                                                    
04 May 2004                                                                     
Sponsor                                                                         
Nedbank Capital                                                                 
Date: 04/05/2004 12:00:04 PM Supplied by www.sharenet.co.za                     
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