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CSB - Cashbuild Limited - Second Quarter Operational Update - Fy 2010 CASHBUILD LIMITED (Registration number: 1986/001503/06) (Incorporated in the Republic of South Africa) JSE share code: CSB ISIN: ZAE000028320 ("Cashbuild" or "the company") SECOND QUARTER OPERATIONAL UPDATE - FY 2010 Cashbuild is currently in the process of finalising its results for the half- year ended December 2009. In line with past practice and disclosure, Cashbuild herewith provides its quarterly trading update. Revenue for the company was up by 8% on the second quarter of the prior financial year. Stores opened since 1 July 2008 (new stores - 18 stores) contributed 5% of the increase, whilst existing stores (170 stores) contributed 3%. This, together with the growth reported in quarter one, equates to an increase in revenue for the half year of 9%. Transactions through the tills during the 2nd quarter increased by 11% with new stores adding 5% and existing stores increasing by 6%. Half year increased by 13%, new stores adding 7% and existing stores increasing by 6%. Units sold increased by 1% (Q1: 2% decrease). Existing stores decreased by 4% (Q1:7% decrease). Half year flat on prior year, existing stores decreasing by 5%. Four new stores were opened during this quarter (half year 5 stores) bringing the number of stores trading at the end of the half year period to 188. Four stores were refurbished during this quarter as well as for the half year. No stores were relocated. In addition to the factual part of the operational update given above, the following paragraphs will only deal with indicative information. Prospects Management is pleased with the trading experienced in all the regions over the traditionally good festive season, except Botswana, which was disappointing. Selling price inflation during this quarter was around 1%. What is still pleasing is the continued excellent growth of 11% in customer transactions of which 6% is of the existing store base. As reported during the first quarter update, in the current tough trading environment, gross profit margins remain under pressure and are at similar percentage levels as the second half of the previous financial year. Operating expenses are higher mainly due to the increase in staff cost with salary increases becoming effective 1 July 2009. Both of the above consequently had a negative effect on operating margins. Detail per region The breakdown per region of the factual information given in the update above is reflected in the following three tables: Revenue increase on prior year Total New Existing Percentage per region of total sales % % % % South Africa Q1 12 7 5 84 Q2 11 6 5 84 Half year 12 7 5 84 Lesotho Q1 23 - 23 2 Q2 11 - 11 3 Half year 17 - 17 3 Namibia Q1 14 - 14 2 Q2 16 - 16 2 Half year 15 - 15 2 Swaziland Q1 11 - 11 5 Q2 3 - 3 5 Half year 6 - 6 5 Botswana (in Rand) Q1 (15) - (15) 6 Q2 (23) 3 (26) 5 Half year (20) 2 (22) 5 Botswana (in Pula) Half year (12) 2 (14)
Malawi (in Rand) Q1 5 - 5 1 Q2 (12) - (12) 1 Half year (6) - (6) 1 Malawi (in Half year 10 - 10 Kwatcha) Total Cashbuild Q1 10 6 4 100 Q2 8 5 3 100
Half year 9 6 3 100 Transaction increase on prior Total New Existing Percentage of year per region total transactions
% % % % South Africa Q1 15 8 7 86 Q2 12 6 6 87
Half year 13 7 6 87 Lesotho Q1 18 - 18 2 Q2 11 - 11 2
Half year 14 - 14 2 Namibia Q1 26 - 26 2 Q2 18 - 18 2
Half year 22 - 22 2 Swaziland Q1 10 - 10 4 Q2 4 - 4 4
Half year 7 - 7 4 Botswana Q1 1 - 1 5 Q2 (3) 4 (7) 4
Half year (1) 2 (3) 5 Malawi Q1 12 - 12 1 Q2 6 - 6 1
Half year 9 - 9 0 Total Cashbuild Q1 14 7 7 100 Q2 11 5 6 100
Half year 13 7 6 100 Number of stores - end Total New Existing Percentage quarter two of total %
South Africa 161 144 17 86 Lesotho 5 5 - 3 Namibia 4 4 - 2 Swaziland 6 6 - 3 Botswana 11 10 1 6 Malawi 1 1 - 0 Total 188 170 18 100 1 February 2010 Sponsor Nedbank Capital Date: 01/02/2010 11:49:01 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.
