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CASHBUILD LIMITED - Fourth quarter operational update - FY 2014

Release Date: 21/07/2014 12:00
Code(s): CSB     PDF:  
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Fourth quarter operational update - FY 2014

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 – FY 2014


In line with past practice and disclosure, Cashbuild herewith
provides its quarterly operational update.

Revenue for the company was up by 6% on the fourth quarter of
the prior financial year. Stores opened since 1 July 2012 (new
stores – 24 stores) contributed 6% of the increase, whilst
existing stores (191 stores) remained at similar levels.
Twelve of the 24 new stores opened, are in proximity of
existing Cashbuild stores, causing an overlap of trading area
with resultant impact on existing stores sales growth and
customer transactions. The growth for the fourth quarter
together with the growth of previous quarters reported,
equates to an increase in revenue for the year of 6%.

Transactions through the tills during the fourth quarter
increased by 5% compared to the fourth quarter of the prior
financial year. New stores contributed an increase of 7% while
existing stores decreased by 2%. Total units sold for the
fourth quarter increased by 1% to the prior year with existing
stores decreasing by 4%.

Five new stores were opened, two stores were refurbished and
one relocated during the fourth quarter. For the financial
year, 15 new stores were opened, 20 refurbished and seven
stores were relocated, bringing the total number of stores
trading at the end of the financial year to 215. Six Cashbuild
DIY pilot stores (not included in the above number), were
trading at the end of the fourth quarter.

Trading conditions remained tough throughout the quarter.
Selling inflation was at 5% at the end of June 2014 when
compared to June 2013. Gross profit percentage margins remain
strong and increased from levels reported at the half year.

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        Total   New   Exist Percen-
year per region                 Growth          -ing tage of
                                                      total
                                                      sales
                                  %       %       %     %

Cashbuild Group     Half year     7       4      3     100
                        Q3        6       6      -     100
                        Q4        6       6      -     100
                    Full year     6       5      1     100

South Africa        Half year     6       5      1     87
                        Q3        5       5      -     87
                        Q4        5       6     (1)    87
                    Full year     6       6      -     87

Lesotho             Half year     11      -      11     3
                        Q3       (12)     -     (12)    3
                        Q4       (13)     -     (13)    2
                    Full year     (2)     -      (2)    3

Namibia             Half year     31      -     31      2
                        Q3        26      -     26      2
                        Q4        18      -     18      2
                    Full year     27      -     27      2

Swaziland           Half year     14      2     12      4
                        Q3        22     12     10      4
                        Q4        19     13      6      4
                    Full year     17      7     10      4

Botswana(in Rand)   Half year     12      -     12      4
                        Q3         7      -      7      4
                        Q4         7      -      7      4
                    Full year      9      -      9      4

Botswana(in Pula)   Half year      3      -      3
                        Q3        (2)     -     (2)
                        Q4         1      -      1
                    Full year      1      -      1

Malawi (in Rand)    Half year     36      8     28      -
                        Q3        38     47     (8)     -
                        Q4        51     43      8      1
                    Full year     41     28      9      -
Malawi(in           Half year     42      8     34
Kwatcha)
                        Q3        30     42    (12)
                        Q4        57     45     12
                    Full year     43     28     15



Transaction increase on prior    Total   New   Exis   Percen-
year per region                 Growth           t-    age of
                                                ing     total
                                                      transac
                                                       -tions
                                  %       %     %         %

Cashbuild Group     Half year     2       5     (3)     100
                        Q3        2       4     (2)     100
                        Q4        5       7     (2)     100
                    Full year     3       5     (2)     100

South Africa        Half year     2       5     (3)     89
                        Q3        2       4     (2)     89
                        Q4        5       7     (2)     89
                    Full year     3       5     (2)     89

Lesotho             Half year      2      -      2       2
                        Q3        (9)     -     (9)      2
                        Q4        (7)     -     (7)      2
                    Full year     (2)     -     (2)      2

Namibia             Half year     13      -     13       2
                        Q3         8      -      8       2
                        Q4        10      -     10       2
                    Full year     12      -     12       2

Swaziland           Half year      4      1      3       3
                        Q3        10     13     (3)      3
                        Q4        10     14     (4)      3
                    Full year      7      8     (1)      3

Botswana            Half year     (3)     -     (3)      4
                        Q3        (2)     -     (2)      4
                        Q4         2      -      2       4
                    Full year     (1)     -     (1)      4

Malawi              Half year      7      3      4       -
                        Q3        21     24     (3)      -
                        Q4        29     36     (7)      -
                    Full year     16     16      -       -
Unit increase on prior year                Total    New   Exist-
                                           Growth           ing
                                              %      %       %

Cashbuild Group        Half year             8       4       4
                           Q3                -       3      (3)
                           Q4                1       5      (4)
                       Full year             4       4       -



Number of stores – end of     Total   New     Existing Percentage
year                                                    of total
                                                            %
South Africa                   188    22         166        87
Lesotho                          5     -           5         2
Namibia                          3     -           3         2
Swaziland                        7     1           6         3
Botswana                        10     -          10         5
Malawi                           2     1           1         1
Total                          215    24         191       100

Prospects

Management expect trading conditions to remain competitive
into the first quarter of the new financial year. Store
development activity is expected to continue at levels seen
over the past year.


Sponsor
Nedbank Capital

21 July 2014

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