Cashbuild - Fourth Quarter Operational Update

Cashbuild - Fourth Quarter Operational Update                                   
Cashbuild Limited                                                               
(Registration number: 1986/001503/06)                                           
(Incorporated in the Republic of South Africa)                                  
JSE share code: CSB & ISIN: ZAE000028320                                        
("Cashbuild" or "the company")                                                  
FOURTH QUARTER OPERATIONAL UPDATE                                               
Cashbuild is currently in the process of finalising its results for the year    
ended 30 June 2006. In line with past disclosure, Cashbuild provides herewith   
its 4th quarter operational update.                                             
On a sales level, the fourth quarter delivered revenue that was 10% higher than 
that of the prior comparable period. This increase is on top of one of the      
highest growths in revenue in the history of Cashbuild (48% increase on the 4th 
quarter 2004), amounting to a compound growth for the two years of 27% and sales
for the full trading year increasing by 22%. New stores contributed 10% to this 
increase with the remaining 12% from existing stores. Transactions through the  
tills increased by 12% for the quarter (2005: 35%, two year compound: 23%),     
whilst the number of units sold decreased by 7% (2005: 51% increase, two year   
compound: 25% increase).                                                        
Gross profit margins remained solid for most of the quarter with some downward  
pressure being experienced towards the end of the quarter.                      
Due to a number of non-recurring expense items experienced in the earlier part  
of the financial year, the increase in operating expenses (excluding the effect 
of new stores) for the quarter was back to inflationary levels, compared to the 
same quarter of the prior year. Some points of notice on operating expenses are 
as follows:                                                                     
-    customer delivery service expenses were, for the first time since          
introduction, at budgeted levels for the entire quarter and were, in rand  
     terms, lower than that of the 3rd quarter 2006;                            
-    advertising expenses were, in line with the stated strategy, lower than    
     that of the 3rd quarter 2006; and                                          
-    staff costs were well contained with the expense for the 2nd half of the   
     trading year comparing favourably with that of the first trading half.     
Four new stores were opened during this quarter bringing the number of new      
stores opened for the year to 17, with 150 stores trading at the end of the     
financial year. Two stores were refurbished and one relocated during this       
quarter.                                                                        
Prospects                                                                       
Revenue for the first four trading weeks of the new financial year showed good  
growth on figures for the comparable period.                                    
2 August 2006                                                                   
Sponsor                                                                         
Nedbank Capital                                                                 
Date: 02/08/2006 03:12:19 PM Supplied by www.sharenet.co.za                     
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