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CSB - Cashbuild Limited - Audited Interim Results December 2008 and dividend

Release Date: 17/03/2009 11:05
Code(s): CSB
Wrap Text

CSB - Cashbuild Limited - Audited Interim Results December 2008 and dividend declaration Cashbuild Limited (Registration number: 1986/001503/06) (Incorporated in the Republic of South Africa) Listed on the JSE Limited JSE Share Code: CSB & ISIN: ZAE000028320 Audited interim results December 2008 and dividend declaration - Revenue up 28% - Net asset value per share up 36% - Operating profit up 39% - Headline earnings up 42% - Cash & cash equivalents up 19% - Dividends up 42% CONDENSED GROUP INCOME STATEMENT - AUDITED Six months Six months Year
ended ended ended 31 December 31 December % 30 June R`000 2008 2007 Change 2008 (26 weeks) (26 weeks) (52 weeks)
Revenue 2 572 840 2 011 325 28 4 043 493 Cost of sales (2 018 516) (1 589 876) 27 (3 171 658) Gross profit 554 324 421 449 32 871 835 Selling and marketing expenses (343 987) (263 185) 31 (552 885) Administrative expenses (53 376) (46 515) 15 (97 656) Other operating expenses (2 725) (2 089) 30 (3 326) Other income 321 1 469 (78) 9 447 Operating profit 154 557 111 129 39 227 415 Finance cost (1 813) (911) 99 (2 886) Finance income 15 764 9 463 67 20 200 Profit before income tax 168 508 119 681 41 244 729 Income tax expense (51 561) (37 412) 38 (75 180) Profit for the period 116 947 82 269 42 169 549 Attributable to: Equity holders of the company 111 162 78 213 42 160 768 Minority interest 5 785 4 056 43 8 781 116 947 82 269 42 169 549 Earnings per share (cents) 489.5 344.4 42 707.9 Diluted earnings per share (cents) 489.5 344.4 42 707.9 ADDITIONAL INFORMATION - AUDITED Six months Six months Year ended ended ended 31 December 31 December 30 June R`000 2008 2007 2008 Net asset value per share (cents) 2 151 1 579 1 825 Ordinary shares (`000): - In issue 25 805 25 805 25 805 - Weighted-average 22 709 22 709 22 709 - Diluted weighted-average 22 709 22 709 22 709 Capital expenditure 73 354 26 421 69 106 Depreciation of property, plant and equipment 19 503 15 566 33 866 Amortisation of intangible assets 944 1 078 1 802 Capital commitments 99 670 155 575 170 012 Property operating lease commitments 811 470 687 203 775 477 Contingent liabilities 2 950 12 077 16 850 CONDENSED GROUP BALANCE SHEET - AUDITED 31 December 31 December 30 June R`000 2008 2007 2008 ASSETS Non-current assets 362 912 273 163 299 971 Property, plant and equipment 318 739 253 179 276 070 Intangible assets 21 734 9 346 11 274 Deferred income tax assets 22 439 10 638 12 627 Current assets 1 615 425 1 233 954 1 304 794 Assets held for sale 2 740 2 740 2 740 Inventories 952 802 674 144 832 449 Trade and other receivables 75 027 63 649 88 228 Cash and cash equivalents 584 856 493 421 381 377 Total assets 1 978 337 1 507 117 1 604 765 EQUITY AND LIABILITIES Shareholders` equity 594 798 436 991 505 109 Share capital and reserves 555 191 407 436 470 967 Minority interest 39 607 29 555 34 142 Non-current liabilities 47 279 39 152 43 052 Deferred operating lease liability 43 458 35 520 39 330 Deferred profit 1 829 1 881 1 855 Borrowings (non interest-bearing) 1 992 1 751 1 867 Current liabilities 1 336 260 1 030 974 1 056 604 Trade and other liabilities 1 284 950 998 439 1 022 140 Current income tax liabilities 49 075 31 347 33 224 Employee benefits 2 235 1 188 1 240 Total equity and liabilities 1 978 337 1 507 117 1 604 765 CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY - AUDITED R`000 Attributable to equity holders of the company Treasury Treasury Cum. Share share Share share translation Retained Minority Total capital capital premium premium adjustment earnings interest equity Balance at 1 July 2007 258 (29) 115 817 (83 686) (7 432) 326 290 32 075 383 293 Profit for the period - - - - - 78 213 4 056 82 269 Dividend paid - final 2007 - - - - - (21 347) (6 576) (27 923) Currency translation adjustments - - - - (648) - - (648) Balance at 31 December 2007 258 (29) 115 817 (83 686) (8 080) 383 156 29 555 436 991 Profit for the period - - - - - 82 555 4 725 87 280 Dividend paid - interim 2008 - - - - - (22 937) (138) (23 075) Currency translation adjustments - - - - 3 913 - - 3 913 Balance at 30 June 2008 258 (29) 115 817 (83 686) (4 167) 442 774 34 142 505 109 Profit for the period - - - - - 111 162 5 785 116 947 Dividend paid - final 2008 - - - - - (29 070) (320) (29 390) Currency translation adjustments - - - - 2 132 - - 2 132 Balance at 31 December 2008 258 (29) 115 817 83 686) (2 035) 524 866 39 607 594 798 CONDENSED GROUP CASH FLOW STATEMENT - AUDITED Six months Six months Year ended ended ended 31 December 31 December 30 June R`000 2008 2007 2008 Cash flows from operating activities Cash generated from operations 337 158 487 006 469 508 Interest paid (1 813) (911) (2 886) Taxation paid (45 522) (47 688) (85 568) Net cash generated from operating activities 289 823 438 407 381 054 Cash flows from investing activities Net investment in assets (72 843) (26 212) (68 681) Interest received 15 764 9 463 20 200 Net cash used in investing activities (57 079) (16 749) (48 481) Cash flows from financing activities Increase in borrowings 125 106 222 Dividends paid - own equity (29 070) (21 347) (44 284) - minorities (320) (6 576) (6 714) Net cash used in financing activities (29 265) (27 817) (50 776) Net increase in cash and cash equivalents 203 479 393 841 281 797 Cash and cash equivalents at beginning of period 381 377 99 580 99 580 Cash and cash equivalents at end of period 584 856 493 421 381 377 CONDENSED GROUP SEGMENTAL ANALYSIS - AUDITED South Africa Six months Six months Year ended ended ended 31 December 31 December 30 June R`000 2008 2007 2008 Income statement Revenue 2 112 890 1 659 897 3 346 359 Operating profit 107 172 88 111 178 245 Balance sheet Segment assets 1 592 314 1 206 464 1 268 995 Segment liabilities 1 151 900 880 198 901 539 Other segment items Depreciation 17 238 13 542 29 751 Amortisation 944 1 061 1 766 Capital expenditure 62 868 25 934 67 914 Other members of common monetary area* Six months Six months Year
ended ended ended 31 December 31 December 30 June R`000 2008 2007 2008 Income statement Revenue 251 936 213 110 411 623 Operating profit 18 279 11 583 24 278 Balance sheet Segment assets 223 857 172 104 194 139 Segment liabilities 127 861 99 833 111 485 Other segment items Depreciation 1 542 1 405 2 826 Amortisation - - - Capital expenditure 9 528 418 675 *Includes Namibia, Swaziland and Lesotho Botswana and Malawi Six months Six months Year
ended ended ended 31 December 31 December 30 June R`000 2008 2007 2008 Income statement Revenue 208 014 138 318 285 511 Operating profit 29 106 11 435 24 892 Balance sheet Segment assets 162 166 128 549 141 631 Segment liabilities 103 778 90 095 86 632 Other segment items Depreciation 723 619 1 289 Amortisation - 17 36 Capital expenditure 958 69 517 Group Six months Six months Year ended ended ended
31 December 31 December 30 June R`000 2008 2007 2008 Income statement Revenue 2 572 840 2 011 325 4 043 493 Operating profit 154 557 111 129 227 415 Balance sheet Segment assets 1 978 337 1 507 117 1 604 765 Segment liabilities 1 383 539 1 070 126 1 099 656 Other segment items Depreciation 19 503 15 566 33 866 Amortisation 944 1 078 1 802 Capital expenditure 73 354 26 421 69 106 NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL INFORMATION 1. Basis of preparation. The condensed consolidated interim financial information ("financial information") announcement is based on the audited interim financial statements of the group for the period ended 31 December 2008, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") and the presentation and disclosure requirements of IAS 34 - Interim Financial Reporting, the Listings Requirements of the JSE Limited and the South African Companies Act (1973) and consistently applied to the prior year. 2. Independent audit by the auditors. These condensed consolidated interim results have been audited by our auditors PricewaterhouseCoopers Inc., who have performed their audit in accordance with the International Standards on Auditing. A copy of their unqualified audit report is available for inspection at the registered office of the company. 3. Reporting period. The group adopts the retail accounting calendar, which comprises the reporting period ending on the last Saturday of the month (2008: 27 December (26 weeks); 2007: 29 December (26 weeks); June 2008:28 June (52 weeks)). 4. Earnings per share. Earnings per share is calculated by dividing the earnings attributable to shareholders for the period, by the weighted average number of 22 709 487 ordinary shares in issue during the period. (December 2007: 22 709 487 shares; June 2008: 22 709 487 shares). 5. Headline earnings per ordinary share. The calculations of headline earnings and diluted headline earnings per ordinary share are based on headline earnings of R111.4 million (December 2007: R78.7 million; June 2008: R161.2 million)and a weighted average of 22 709 487 (December 2007: 22 709 487; June 2008: 22 709 487) and fully diluted of 22 709 487 (December 2007: 22 709 487; June 2008: 22 709 487) ordinary shares in issue. Reconciliation between net profit attributable to the equity holders of the company and headline earnings: R`000 Dec-08 Dec-07 % Change Jun-08 Net profit attributable to the company`s equity holders 111 162 78 213 42 160 768 Loss on sale of assets after taxation 258 464 391 Headline earnings 111 420 78 677 42 161 159 Headline earnings per share (cents) 490.6 346.5 42 709.7 Diluted headline earnings per share(cents) 490.6 346.5 42 709.7 6.Declaration of dividend. The board has declared an interim dividend (No. 32), of 143 cents (December 2007: 101 cents) per ordinary share to all shareholders of Cashbuild Limited. The dividend per share is calculated based on 25 805 347 shares in issue at date of dividend declaration. Date dividend declared: Monday, 16 March 2009 Last day to trade "CUM" the dividend: Friday, 17 April 2009 Date commence trading "EX" the dividend: Monday, 20 April 2009 Record date: Friday, 24 April 2009 Date of payment: Tuesday, 28 April 2009 Share certificates may not be dematerialised or rematerialised between Monday, 20 April 2009 and Friday, 24 April 2009, both dates inclusive. On behalf of the board DONALD MASSON PAT GOLDRICK Chairman Chief executive Johannesburg Date: 16 March 2009 COMMENTS NATURE OF BUSINESS Cashbuild is southern Africa`s largest retailer of quality building materials and associated products, selling direct to a predominantly cash-paying customer- base through our constantly expanding chain of stores (182 at the end of this reporting period). Cashbuild carries an in-depth quality product range tailored to the specific needs of the communities we serve. Our customers are typically home-builders and improvers, contractors, farmers, traders, large construction companies and government-related infrastructure developers, as well as all other customers requiring quality building materials at lowest prices. Cashbuild has built its credibility and reputation by consistently offering its customers quality building materials at the lowest prices and through a purchasing and inventory policy that ensures customers` requirements are always in stock. INTERNATIONAL FINANCIAL REPORTING STANDARDS The group is reporting its audited interim results in accordance with International Financial Reporting Standards ("IFRS"). FINANCIAL HIGHLIGHTS Revenue for the half year increased by 28% whilst profit increased by 42%. This increase in profit was as a result of an improvement in operating profit of 39% as well as a 63% increase in net finance income. Basic earnings per share, as well as headline earnings per share improved by 42%. Net asset value per share has shown a 36% increase, from 1 579 cents (December 2007) to 2 151 cents. Cash and cash equivalents increased by 19% to R585 million. Stores in existence since the beginning of July 2007 (pre-existing stores) accounted for 22% of the increase in revenue with the remaining 6% increase due to the 20 new stores the group has opened since July 2007. The increase for the half year has been achieved on the back of steady revenue growth in the first and second quarters of this interim period. Gross profit margins for the half year were slightly higher in percentage terms at 21.5% (December 2007: 21.0%), but in rand terms, increased by a pleasing 32%. Operational expenses for the half year remained well controlled with existing stores accounting for 20% of the increase, new stores 9%, the total increase for the half year amounting to 29%. The main contributor to the higher than inflation increase on the existing stores is the continued investment in people to maintain and improve customer service standards, as well as intensive customer-focused advertising that was undertaken in the run-up to and during the Christmas trading period. The effective tax rate for half the year of 31% is in line with that of the prior corresponding period. Cashbuild`s balance sheet remains solid. Stock levels have increased by 41% on the back of comparable growth in revenue of 22% during the half year. This increase is further attributable to the stocking of 18 additional stores since the prior half year-end (accounting for 17% of the increase). Overall stockholding at 79 days (December 2007: 68 days; June 2008: 87 days) showed a decline on the prior interim period, but improved on the position as at June 2008. Management of stock will remain a focus area for the period to come. Trade receivables increased in line with expectations and remain well under control. During the half year Cashbuild opened 11 new stores. Two old stores were closed (in towns where two stores were trading in close proximity) and two were relocated. Cashbuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner, with three new stores planned to open during the remainder of the financial year. INFORMATION TECHNOLOGY Cashbuild`s total IT requirement is in the process of being replaced with a fully integrated SAP All-in-One and Active Retail solution. The project is progressing according to plan. Currently nearing the end of the realisation phase, we expect this project to reach completion by December 2009. PROSPECTS Management remains confident about the trading prospects for the next quarter based on the fact that the first eight trading weeks since half year-end have reported an increase in revenue of 29% on that of the comparable eight weeks. Directors: D Masson* (Chairman), PK Goldrick (Chief executive) (Irish), WF de Jager, J Molobela*, KB Pomario, FM Rossouw*, NV Simamane*, SA Thoresson, A van Onselen (*Non-executive) Company secretary: Corporate Governance Leaders CC Registered office: cnr Aeroton and Aerodrome Roads, Aeroton, Johannesburg 2001 PO Box 90115, Bertsham 2013 Transfer secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg 2001 PO Box 61051, Marshalltown 2107 Auditors: PricewaterhouseCoopers Inc. Sponsor: Nedbank Capital 17 March 2009 QUALITY BUILDING MATERIALS AT THE LOWEST PRICES www.cashbuild.co.za Date: 17/03/2009 11:05:49 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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