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Audited interim results and dividend declaration for the six months ended 31 December 2019
Cashbuild Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/001503/06)
Share code: CSB ISIN: ZAE000028320
("Cashbuild" or "the Company")
AUDITED INTERIM RESULTS AND DIVIDEND DECLARATION
for the six months ended 31 December 2019
COMPANY PROFILE
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 (321 at the end of this reporting
period which includes 60 P&L Hardware stores and one DIY store). 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 SUMMARY
Six months Six months
ended ended Year ended
December December June
R'million 2019 2018 % change 2019
Revenue 5 510 5 563 (1) 10 821
Gross profit 1 369 1 394 (2) 2 720
Operating profit 299 285 5 559
Profit before taxation 248 313 (21) 613
Net profit attributable to owners of the company 170 217 (22) 427
Headline earnings 173 221 (22) 434
Earnings per share (cents) 748.0 956.2 (22) 1 881.3
Diluted earnings per share (cents) 747.8 955.8 (22) 1 880.6
Headline earnings per share (cents) 762.4 972.3 (22) 1 910.4
Diluted headline earnings per share (cents) 762.2 971.9 (22) 1 909.5
Net asset value (NAV) per share (cents) 8 388 8 167 3 8 636
Dividend per share (cents) 435 435 - 855
FINANCIAL HIGHLIGHTS
The Group has adopted IFRS 16 which replaces IAS 17. The financial highlights are based on unaudited results,
provided for comparative purposes and exclude the effects of IFRS 16 in the current period and IAS 17 in the prior
reported period. The following table summarises the impact of the adoption of IFRS 16 on the results of the current and
comparative reporting period excluding the IAS 17 impact:
Audited Unaudited Unaudited Audited
December December % December December
R'000 2019 IFRS 16 2019 change 2018 IAS 17 2018
Financial position
Property, plant and equipment 2 430 394 (1 298 318) 1 132 076 - 1 128 254 - 1 128 254
Deferred tax 72 116 (91 337) (19 221) (38) (30 838) (49 240) 18 402
Lease liabilities 1 623 559 (1 623 559) - - - - -
Deferred operating lease
liability - - - (100) 1 696 (172 673) 174 369
Shareholders' equity 2 129 229 178 263 2 307 492 3 2 243 816 172 673 2 071 143
Net asset value per share (cents) 8 388 713 9 101 3 8 858 691 8 167
Comprehensive Income
Operating expenses 1 069 125 60 144 1 129 269 3 1 098 784 (10 603) 1 109 387
Operating profit 299 449 (60 144) 239 305 (19) 295 472 10 603 284 869
Finance costs 90 495 (89 581) 914 (69) 2 966 - 2 966
Profit attributable to
owners of the company 169 957 29 437 199 394 (12) 227 799 10 603 217 196
Earnings per share (cents) 748.0 129.5 877.5 (13) 1 002.9 46.7 956.2
Headline earnings per share (cents) 762.4 129.5 891.9 (12) 1 019.0 46.7 972.3
Revenue for the period decreased by 1%. Revenue for stores in existence prior to July 2018 (pre-existing stores - 302 stores)
declined by 1% while our 19 new stores since July 2018 contributed 3%. Selling price inflation was 2%. Gross profit decreased
by 2% in tough trading conditions with gross profit percentage reducing from 25.1% to 24.8%. Operating expenses, including new
stores, were well controlled and increased by only 3% (existing stores remained at similar levels) which, with 1% decline in
revenue, resulted in a decline in operating profit of 19%. Earnings per share decreased by 13% and headline earnings per
share by 12%.
Cash and cash equivalents increased by 32% to R1,404 million and cash generated from operations increased substantially which
is mainly due to supplier payments effected prior to June 2019 financial year-end close. Stock levels, including new stores,
decreased by 9% with overall stockholding at 82 days (December 2018: 85 days) at period end. Net asset value per share reflects
a 3% increase, from 8 858 cents (December 2018) to 9 101 cents.
During the first half, Cashbuild Group opened eight new stores (seven Cashbuild stores and one P&L Hardware store), refurbished
nine stores and closed two Cashbuild stores. Cashbuild will continue its store expansion, relocation and refurbishment strategy
in a controlled manner, applying an even more rigorous process, than in the past.
PROSPECTS
Group revenue for the subsequent six weeks after half year end has remained at similar levels for the comparable six week period.
Management expects trading conditions to remain extremely challenging. This information has not been reviewed nor reported on
by the company's auditor.
DECLARATION OF DIVIDEND
Considering the strong cash position the board has declared an interim dividend (No. 54), of 435 cents (2018: 435 cents) per
ordinary share out of income reserves to all shareholders of Cashbuild Limited. The dividend per share is calculated based
on 24 989 811 (2018: 24 989 811) shares in issue at date of dividend declaration. Net local dividend amount is 348 cents per
share for shareholders liable to pay Dividends Tax and 435 cents per share for shareholders exempt from paying Dividends Tax.
Local dividend tax is 20%.
Cashbuild Limited's tax reference number is 9575168712.
Date dividend declared: Monday, 2 March 2020
Last day to trade "CUM" the dividend: Tuesday, 24 March 2020
Date to commence trading "EX" the dividend: Wednesday, 25 March 2020
Record date: Friday, 27 March 2020
Date of payment: Monday, 30 March 2020
Share certificates may not be dematerialised or rematerialised between Wednesday, 25 March 2020 and Friday, 27 March 2020,
both dates inclusive.
Johannesburg
Sponsor: Nedbank CIB
Approved by the board on 2 March 2020
This short-form announcement is the responsibility of the Board of directors of Cashbuild and is prepared based on the audited
interim results being the full announcement. Any investment decision should be based on the full announcement available on
Cashbuild's website and on the JSE's website at https://senspdf.jse.co.za/documents/2020/jse/isse/CSB/ie2019.pdf
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 11 248 1500.
www.cashbuild.co.za
Quality building materials at the best value
3 March 2020
Date: 03-03-2020 07:10:00
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