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Audited annual results and dividend declaration June 2015
Cashbuild Limited
(Registration number: 1986/001503/06)
(Incorporated in the Republic of South Africa)
JSE code: CSB ISIN: ZAE000028320
AUDITED ANNUAL RESULTS AND DIVIDEND DECLARATION JUNE 2015
Revenue
UP 13%
R7 693 million
Operating profit
UP 30%
R465 million
Headline earnings
UP 33%
R352 million
Net asset value per
share
UP 10%
5 329 cents
Total dividend
UP 35%
712 cents
Space growth
UP 3%
222 stores
SUMMARY CONSOLIDATED INCOME STATEMENT – AUDITED
Year ended Year ended
30 June 30 June
2015 2014
R'000 (52 weeks) (52 weeks) % change
Revenue 7 692 646 6 781 274 13
Cost of sales (5 844 200) (5 175 906) 13
Gross profit 1 848 446 1 605 368 15
Selling and marketing expenses (1 161 479) (1 051 550) 10
Administrative expenses (226 871) (200 734) 13
Other operating expenses (3 352) (3 713) (10)
Other income 7 759 8 195 (5)
Operating profit 464 503 357 566 30
Finance cost (1 752) (1 004) 75
Finance income 39 676 23 927 66
Profit before income tax 502 427 380 489 32
Income tax expense (139 048) (111 036) 25
Profit for the year 363 379 269 453 35
Attributable to:
- Owners of the company 358 916 265 915 35
- Non-controlling interests 4 463 3 538 26
363 379 269 453 35
Earnings per share (cents) 1 556.8 1 147.6 36
Diluted earnings per share (cents) 1 536.7 1 136.6 35
SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME – AUDITED
Year ended Year ended
30 June 2015 30 June 2014
R'000 (52 weeks) (52 weeks)
Profit for the year 363 379 269 453
Other comprehensive income re-classifiable to profit or loss:
Total movement in foreign currency translation reserve (FCTR) 2 272 3 711
Attributable to:
- Owners of the company 1 794 4 253
- Non-controlling interests 478 (542)
Total comprehensive income for the year 365 651 273 164
Total comprehensive income attributable to:
- Owners of the company 360 710 270 168
- Non-controlling interests 4 941 2 996
365 651 273 164
ADDITIONAL INFORMATION – AUDITED
Year ended Year ended
R'000 30 June 2015 30 June 2014
Net asset value per share (cents) 5 329 4 858
Ordinary shares ('000s):
– In issue 25 190 25 190
– Weighted-average 23 055 23 171
– Diluted weighted-average 23 357 23 395
Capital investment 168 602 269 555
Depreciation of property, plant and equipment 105 821 87 351
Amortisation of intangible assets 14 700 13 237
Capital commitments 105 134 163 787
Property operating lease commitments 1 216 934 1 130 661
Contingent liabilities 2 216 1 411
SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION – AUDITED
30 June 30 June
R'000 2015 2014
ASSETS
Non-current assets 950 895 873 144
Property, plant and equipment 836 252 794 174
Intangible assets 39 048 42 019
Rent prepayments 68 807 36 530
Deferred income tax assets 6 788 421
Current assets 2 117 533 1 743 011
Assets held for sale 9 548 12 393
Inventories 1 073 129 933 035
Trade and other receivables 95 939 93 261
Cash and cash equivalents 938 917 704 322
Total assets 3 068 428 2 616 155
EQUITY AND LIABILITIES
Shareholders' equity 1 362 745 1 239 118
Share capital and reserves 1 342 326 1 223 723
Non-controlling interests 20 419 15 395
Non-current liabilities 105 979 100 217
Deferred operating lease liability 105 979 100 217
Current liabilities 1 599 704 1 276 820
Trade and other liabilities 1 551 433 1 243 406
Current income tax liabilities 43 387 28 813
Employee benefits 4 884 4 601
Total equity and liabilities 3 068 428 2 616 155
SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY – AUDITED
Attributable to owners of the Company
Treasury Treasury Share-based Non-
Share share Share share payments Retained controlling Total
R'000 capital capital premium premium reserve FCTR earnings interests equity
Balance at 1 July 2013 252 (20) 65 823 (30 111) 21 887 (10 336) 1 055 481 13 460 1 116 436
Total comprehensive income for – – – – – 4 253 265 915 2 996 273 164
the year
Dividends paid – – – – – – (107 763) (1 061) (108 824)
Recognition of share-based – – – – 13 928 – – – 13 928
payments
Shares sold by The Cashbuild – 3 – 21 760 – – – – 21 763
Share Incentive Trust
Shares purchased by The – (6) – (77 343) – – – – (77 349)
Cashbuild Share Incentive Trust
Closing balance at 30 June 2014 252 (23) 65 823 (85 694) 35 815 (6 083) 1 213 633 15 395 1 239 118
Total comprehensive income for – – – – – 1 794 358 916 4 941 365 651
the year
Dividends paid – – – – – – (143 630) (980) (144 610)
Recognition of share-based – – – – 9 276 – – – 9 276
payments
Shares sold by The Cashbuild – 6 – 54 541 – – – – 54 547
Share Incentive Trust
Shares purchased by The – (8) – (161 229) – – – – (161 237)
Cashbuild Share Incentive
Trust and The Cashbuild
Operations Management Member
Trust
Increase in shareholding of – – – – – – (1 063) 1 063 –
subsidiary
Closing balance at 30 June 2015 252 (25) 65 823 (192 382) 45 091 (4 289) 1 427 856 20 419 1 362 745
SUMMARY CONSOLIDATED CASH FLOW STATEMENT – AUDITED
Year ended Year ended
30 June 30 June
R'000 2015 2014
Cash flows from operating activities
Cash generated from operations 725 567 929 670
Interest paid (1 752) (1 004)
Taxation paid (130 841) (70 127)
Net cash generated from operating activities 592 974 858 539
Cash flows from investing activities
Net investment in assets (148 915) (261 968)
Decrease in investments – 125 628
Interest received 39 676 23 927
Net cash used in investing activities (109 239) (112 413)
Cash flows from financing activities
Decrease in other borrowings – (250)
Shares purchased by The Cashbuild Share Incentive Trust and The Cashbuild Operations Management Member Trust (161 237) (77 349)
Shares sold by The Cashbuild Share Incentive Trust 54 547 21 763
Dividends paid
– own equity (143 630) (107 763)
– non-controlling interests (980) (1 061)
Acquisition of/increase in shareholding in subsidiary – (2 238)
Net cash used in financing activities (251 300) (166 898)
Net increase in cash and cash equivalents 232 435 579 228
Effect of exchange rate movements on cash and cash equivalents 2 160 1 276
Cash and cash equivalents at beginning of year 704 322 123 818
Cash and cash equivalents at end of year 938 917 704 322
SUMMARY CONSOLIDATED SEGMENTAL ANALYSIS – AUDITED
Group South Africa Other members of common monetary area* Botswana and Malawi
Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June
R'000 2015 2014 2015 2014 2015 2014 2015 2014
Income statement
Revenue 7 692 646 6 781 274 6 732 667 5 889 869 599 648 568 700 360 331 322 705
Operating profit 464 503 357 566 394 039 311 405 48 371 34 718 22 093 11 443
Statement of financial position
Segment assets 3 068 428 2 616 155 2 457 852 2 072 733 392 983 354 062 217 593 189 360
Segment liabilities 1 705 683 1 377 037 1 477 423 1 155 662 148 989 151 474 79 271 69 901
Other segment items
Depreciation 105 821 87 351 95 394 78 209 5 400 5 251 5 027 3 891
Amortisation 14 700 13 237 14 700 13 237 – – – –
Capital investment 168 602 269 555 148 522 247 785 8 731 9 107 11 349 12 663
* Includes Namibia, Swaziland and Lesotho
NOTES TO THE SUMMARY CONSOLIDATED ANNUAL FINANCIAL INFORMATION
1. Basis of preparation. The summary consolidated annual financial statements are prepared in accordance with
International Financial Reporting Standards (“IFRS”), the presentation and disclosure requirements of IAS 34 –
Interim Financial Reporting as required by the JSE Limited Listings Requirements, the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial
Reporting Standards Council and the requirements of the Companies Act of South Africa applicable to summary
annual financial statements. The accounting policies applied in the preparation of the consolidated annual
financial statements from which the summary consolidated annual financial statements were derived are in terms of
International Financial Reporting Standards and are consistent with those accounting policies applied in the
preparation of the previous consolidated annual financial statements. The annual financial statements have been
prepared under the supervision of the Finance Director, Mr AE Prowse CA(SA), and approved by the board on 31
August 2015.
2. Independent audit by the auditor. These summary consolidated annual financial statements for the year ended 30
June 2015 have been audited by PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The
auditor also expressed an unmodified opinion on the consolidated annual financial statements from which these
summary consolidated annual financial statements were derived. 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 Sunday of the month (2015: 28 June (52 weeks); 2014: 29 June (52 weeks)).
4. Earnings per share. Earnings per share is calculated by dividing the earnings attributable to owners of the
company for the year by the weighted average number of 23 054 612 ordinary shares in issue at year end (June
2014: 23 171 020 shares) and fully diluted of 23 357 365 (June 2014: 23 394 727) ordinary shares in issue.
5. Headline earnings per ordinary share. The calculations of headline earnings and diluted headline earnings per
ordinary share are based on headline earnings of R352.3 million (June 2014: R265.2 million) and a weighted
average of 23 054 612 (June 2014: 23 171 020) and fully diluted of 23 357 365 (June 2014: 23 394 727) ordinary
shares in issue.
Reconciliation between net profit attributable to the equity holders of the company and headline earnings:
R'000 June 2015 June 2014 % change
Net profit attributable to the owners of the company 358 916 265 915 35
Profit on sale of assets after taxation (6 585) (692)
Headline earnings 352 331 265 223 33
Headline earnings per share (cents) 1 528.2 1 144.6 34
Diluted headline earnings per share (cents) 1 508.5 1 133.7 33
6. Declaration of dividend. The board has declared a final dividend (No. 45), of 336 cents (June 2014: 253 cents)
per ordinary share out of income reserves to all shareholders of Cashbuild Limited. The dividend per share is
calculated based on 25 189 811 (June 2014: 25 189 811) shares in issue at date of dividend declaration. Net local
dividend amount is 285.6 cents per share for shareholders liable to pay Dividends Tax and 336 cents per share for
shareholders exempt from paying Dividends Tax. The total dividend for the year amounts to 712 cents (June 2014:
528 cents) a 35% increase on the prior year. Local dividend tax is 15%.
Cashbuild Limited's tax reference number is 9575168712.
Date dividend declared: Monday, 31 August 2015
Last day to trade “CUM” the dividend: Thursday, 17 September 2015
Date commence trading "EX" the dividend: Friday, 18 September 2015
Record date: Friday, 25 September 2015
Date of payment: Monday, 28 September 2015
Share certificates may not be dematerialised or rematerialised between Friday, 18 September 2015 and Friday, 25
September 2015, both dates inclusive.
On behalf of the board
DONALD MASSON WERNER DE JAGER
Chairman Chief Executive
Johannesburg
31 August 2015
COMMENTARY
NATURE OF BUSINESS
Cashbuild is southern Africa's largest retailer of quality building materials and associated products, selling direct to
a cash-paying customer base through our constantly expanding chain of stores (222 at the end of this financial year).
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, 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 met.
INTERNATIONAL FINANCIAL REPORTING STANDARDS
The Group is reporting its audited results in accordance with International Financial Reporting Standards (“IFRS”).
FINANCIAL HIGHLIGHTS
Revenue for the year increased by 13% whilst gross profit increased by 15%. This together with operating expense growth
being contained at 11% resulted in an operating profit increase of 30%. Basic earnings per share increased by 36% and
headline earnings per share increased by 34%. Net asset value per share has shown a 10% increase, from 4 858 cents (June
2014) to 5 329 cents.
Revenue for stores in existence prior to July 2013 (pre-existing stores – 198 stores) increased by 8%
whilst our 24 new stores contributed 5%. This increase for the year has been achieved in tough trading conditions with
selling price inflation of 2%.
Gross profit percentage increased to 24.0% from the 23.7% of the prior year.
Operational expenses for the year remained well controlled with existing stores accounting for 5% of the increase and
new stores 6%. The total increase for the year amounted to 11%.
The effective tax rate for the year of 28% is 1% lower than that of the previous year, due to an increase in exempt
income from the sale of property in a neighbouring country and an increase in deductible expenditure as a result of the
Group share incentive scheme.
Cashbuild's statement of financial position remains solid. Cash and cash equivalents increased by 33% to R939 million.
Stock levels have increased by 15% in line with increased sales, with overall stockholding at 78 days (June 2014: 75
days) at year end. Trade receivables remain well under control.
For the financial year, nine new stores were opened, 24 stores were refurbished, six stores were relocated and two
stores trading in close proximity to other Cashbuild stores were closed. The DIY pilot continues with 11 Cashbuild DIY
pilot stores (not included in the 222 total stores number). Cashbuild will continue its store expansion, relocation and
refurbishment strategy in a controlled manner, applying the same rigorous process as in the past.
EVENTS AFTER THE REPORTING PERIOD
On 6 August 2015 Cashbuild announced that it had entered into an agreement to acquire 100% of the shareholding in P&L
Hardware Proprietary Limited from André Prinsloo Trust and FJP Beleggings Proprietary Limited for an amount of R350 million
plus R80 million if certain profit targets are achieved during a three-year period. The effective date of the acquisition
will be five business days following the date on which all conditions precedent have been met, which is anticipated to be
by the end of November 2015. The purchase consideration will be funded from Cashbuild's existing cash resources. Refer to
SENS for the detailed announcement.
PROSPECTS
With revenue for the first six weeks trading since year end having increased by 11% from the comparable six weeks,
management remains positive about top line trading prospects for the financial year. This information has not been
reviewed nor audited by the company's auditor.
Directors: D Masson* (Chairman), WF de Jager (Chief Executive), IS Fourie*, HH Hickey*,
AGW Knock*, Dr DSS Lushaba*, AE Prowse, NV Simamane*, SA Thoresson, A van Onselen (*Non-Executive)
Company Secretary: Corporate Governance Leaders CC
Registered Office: 101 Northern Parkway, Ormonde, Johannesburg, 2091.
PO Box 90115, Bertsham, 2013
Transfer Secretaries: Computershare Investor Services (Proprietary) Limited,
70 Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107
Auditor: PricewaterhouseCoopers Inc.
Sponsor: Nedbank CIB
www.cashbuild.co.za
Date: 01/09/2015 07:10:00 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
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