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")                                                                   
CASHBUILD 3rd QUARTER OPERATIONAL UPDATE                                        
Further to the trading update published on SENS on 6 May 2005, in line with past
disclosure, Cashbuild herewith provides its quarterly trading update.           
Cashbuild has seen the positive revenue growth trend experienced during the     
first half of the financial year continue into the third quarter, with revenue  
40% higher than that of the prior comparative period. This together with the    
improvement during the first half, has resulted in an overall increase in       
revenue of 30% for the combined three quarters this financial year.             
This improvement is still the result of the continued positive macro-economic   
environment, consumer confidence and the strong property culture permeating     
throughout southern Africa, as well as Cashbuild"s continued focus on its core  
strategies of `always in stock", `lowest everyday prices", the free delivery    
service and our highly successful campaign based on the slogan of "life offers  
no guarantees, but Cashbuild does".                                             
Transactions through the check out points increased by 28% for the third quarter
whilst the number of units sold increased by 43% over the comparable period last
year. This growth in units sold is indicative of the change in product mix to   
more high volume lower margin items during this quarter. As a result of the     
aforementioned, margins during the quarter came under pressure and were at      
levels lower than the first half and the comparable prior period.               
Overheads remain at planned higher levels, with the additional spend on people  
cost, advertising, delivery expenses, property expenses and information         
technology, remaining the main contributors to this increase.                   
Cashbuild"s expansion plan is on track with 2 stores opened during the 3rd      
quarter and 3 stores refurbished.                                               
Prospects                                                                       
Revenue growth for the 4th quarter remains positive. Cashbuild expects the      
positive trading environment and the strong property culture to continue into   
the foreseeable future.                                                         
24 May 2005                                                                     
Sponsor                                                                         
Nedbank Capital                                                                 
Date: 24/05/2005 11:38:24 AM Supplied by www.sharenet.co.za                     
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