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Cashbuild Limited - Cashbuild 3rd Quarter Operational Update

Release Date: 19/04/2006 17:00
Code(s): CSB
Wrap Text

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 past disclosure, Cashbuild herewith provides its quarterly trading update. Revenue growth for the third quarter increased by 13% in addition to the 40% growth that was achieved in the corresponding quarter of the prior year, resulting in an overall increase in revenue of 28% for the year to date. Accordingly, the two-year compound growth equates to 26%. The 24 new stores opened since 1 July 2004 contributed 11% to the quarterly increase. Six of our 20 divisions were negatively influenced by the abnormal wet weather experienced, whilst two Botswana divisions experienced a decline in revenue of 20% as a result of the poor state of the Botswana economy and lack of government infrastructure spending. However, the fact that Cashbuild"s three Gauteng divisions and the Namibian division grew by 27% and 50% respectively, is very encouraging. Transactions through the tills increased by 21% for the third quarter whilst the number of units sold only increased by 2% over the comparable quarter last year. This is as a direct result of lower brick sales, which sales have been negatively influenced by the wet weather. Percentage margins during the quarter improved by one percentage point on last years corresponding quarter. Cashbuild"s expense base increase has slowed down from the 43% experienced in the first half of the 2006 financial year to an increase of approximately 32% in the third quarter, reducing the trend to 39% for the year to date. Management expects this trend to be maintained. Cashbuild"s expansion plan continues to be on track, with 2 stores opened during the 3rd quarter as well as one store relocation. Prospects Revenue growth for the 3 trading weeks of the 4th quarter has already shown an improvement on the 3rd quarter growth. Furthermore, management remains positive regarding the remainder of the financial year and the full year results. 19 April 2006 Sponsor Nedbank Capital Date: 19/04/2006 05:00:14 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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