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Annual results and dividend declaration for the year ended 26 June 2022
Cashbuild Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/001503/06)
Share code: CSB
ISIN: ZAE000028320
("Cashbuild" or "the Company" or "the Group")
ANNUAL RESULTS AND DIVIDEND DECLARATION FOR THE YEAR ENDED 26 JUNE 2022
COMPANY PROFILE
Cashbuild is southern Africa's leading retailer of quality building materials and associated products, selling direct to a cash-paying
customer base through our chain of stores (318 at the end of this financial year which includes 54 P&L Hardware stores). 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 the
best value.
FINANCIAL HIGHLIGHTS
Revenue for the year decreased by 12%. Revenue for stores in existence prior to July 2020 (pre-existing stores - 304 stores)
decreased by 13% and our 14 new stores contributed 1% growth. Gross profit decreased by 14% with gross profit margin percentage
decreasing from 26.9% to 26.3%. Selling price inflation was 7.2% at the end of June 2022 when compared to June 2021.
Operating expenses, including new stores, were well controlled in line with the revenue decline, decreasing by 13% (existing stores
reduced by 15% and new stores contributed a 2% increase) resulting in the operating profit decreasing by 16%.
The effective tax rate of 39% for the year is higher than the prior year, due to withholding taxes on foreign country dividends
declared during the year.
Basic earnings per share decreased by 29% with headline earnings per share also decreasing by 33% from the prior year.
Cash and cash equivalents decreased to R1 939 million due to the 2021 higher final dividend paid during the year. Stock levels,
including new stores have decreased by 2% with stockholding at 81 days (June 2021: 74 days) at year end. Net asset value per
share decreased by 8%, from 10 212 cents (June 2021) to 9 350 cents.
During the year, Cashbuild opened 4 new Cashbuild stores, refurbished 21 Cashbuild stores and relocated 1 Cashbuild store.
During the financial year, 4 Cashbuild and 1 P&L Hardware stores were closed. The closures relate to the looting that occurred
during July 2021 and two continuous non-performing stores. Cashbuild will continue its store expansion, relocation and
refurbishment strategy in a controlled manner, after considering its continuously evolving feasibility process.
FINANCIAL SUMMARY
26 June 27 June
R'million 2022 2021 % change
Revenue 11 145 12 616 (12)
Operating profit 876 1 039 (16)
Earnings per share (cents) 2 094.7 2 935.7 (29)
Headline earnings per share (cents) 1 929.4 2 872.6 (33)
Final dividend per share (cents) 677 2 211 (69)
CIVIL UNREST AND LOOTING
During the year, July 2021, 36 (32 Cashbuild and 4 P&L Hardware) stores across the Group were impacted by
the unrest and looting. Stores were looted and damaged which led to the scrapping of various categories of
property, plant and equipment (R20.4 million) and inventory (R136 million). Cashbuild has insurance cover
for such events to minimise losses to the Group and submitted insurance claims of R143 million for inventory,
R71 million for property, plant and equipment, R9 million for additional operational costs as well as
R100 million for business interruption to its respective insurers.
The insurance recovery claims have been recognised in cost of sales (R143 million) and other income
(R181 million). The Group has received payments for all claims relating to asset losses of R224 million. An interim
payment of R50 million was received on 30 April 2022 for business interruption claim of R100 million. Of the 36 stores
looted, 28 have since re-opened, 3 permanently closed and the remaining 5 are either in process of being rebuilt
or under consideration for closure.
PROSPECTS
Group revenue for the six weeks subsequent to period end is 3% lower than the prior year's comparative
six week period. Management expects trading conditions to remain challenging. This information has not been
reviewed nor audited by the company's auditor.
DECLARATION OF DIVIDEND
The Board has declared a final dividend (No. 59) of 677 cents (June 2021: 2 211 cents) per ordinary share,
out of income reserves to all shareholders of Cashbuild Limited. This is based on the updated group dividend
cover policy of 1.5 times. The dividend per share is calculated based on 24 989 811 (June 2021: 24 989 811)
shares in issue at the date of the dividend declaration. The net local dividend amount is 541.6 cents per
share for shareholders liable to pay Dividends Tax and 677 cents per share for shareholders exempt from
paying Dividends Tax. The total dividend for the year amounts to 1 264 cents (June 2021: 2 935 cents).
Local Dividends Tax is 20%.
Cashbuild Limited's tax reference number is 9575168712.
The relevant dates for the declaration are as follows:
Date dividend declared: Tuesday, 30 August 2022
Last day to trade "CUM" the dividend: Tuesday, 20 September 2022
Date to commence trading "EX" the dividend: Wednesday, 21 September 2022
Record date: Friday, 23 September 2022
Date of payment: Monday, 26 September 2022
Share certificates may not be dematerialised or rematerialised between Wednesday, 21 September 2022 and
Friday, 23 September 2022, both dates inclusive.
The unqualified auditor's report, containing key audit matters, together with the annual financial statements are available
on the Company's website at https://cashbuild.co.za/pdf/investorrelations/reports/2022/2022-year-end-results.pdf.
The short-form announcement is the responsibility of the Board of directors of Cashbuild and is only a summary of the
information in the full announcement. Any investment decision should be based on the full announcement published
on the JSE website and which is available on Cashbuild's website http://www.cashbuild.co.za/Report_2022. The full
announcement is also available at the Company's registered office for inspection, at no charge, during office hours.
Copies of the full announcement may be requested by contacting Elna Munro on telephone +27 (0)11 248 1500.
The JSE link is https://senspdf.jse.co.za/documents/2022/jse/isse/CSB/ye2022.pdf.
Ormonde
Approved by the board on 30 August 2022
Sponsor:
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Released 31 August 2022
Quality building materials at the best value
www.cashbuild.co.za
Date: 31-08-2022 07:10:00
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