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Annual results and dividend declaration for the year ended 28 June 2020
Cashbuild Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/001503/06)
Share code: CSB
ISIN: ZAE000028320
("Cashbuild" or "the Company")
ANNUAL RESULTS AND DIVIDEND DECLARATION
FOR THE YEAR ENDED 28 JUNE 2020
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
constantly expanding chain of stores (318 at the end
of this financial year which includes the one DIY store
and 61 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 7%. Revenue for
stores in existence prior to July 2018 (pre-existing stores
- 296 stores) decreased with 10% and our 22 new stores
provided a 3% increase. Gross profit decreased by 7%
with gross profit percentage decreasing from 25.1%
to 25.0%. This was achieved in tough trading conditions
impacted by Covid-19 with selling price inflation of 2%.
Operating expenses, including new stores, remained
well controlled and decreased by 7% (existing
stores 10% and new stores contributed a 3% increase)
resulting in operating profit decreasing by 7%.
Basic earnings per share decreased by 37% with
headline earnings per share also decreasing
by 40% from the prior year. Cash and cash equivalents
increased to R1,952 million due to payments to
suppliers effected after the current year end, as well
as reduced stock levels in the current year. Stock
levels, including new stores, have decreased by 18%
with overall stockholding at 60 days (2019: 84 days)
at year end. Net asset value per share declined 2%,
from 8 636 cents (June 2019) to 8 470 cents.
During the year, Cashbuild opened 11 new stores
(eight Cashbuild stores and three P&L Hardware
stores), refurbished 15 stores and relocated one
Cashbuild store. Cashbuild closed eight stores (seven
Cashbuild stores and one P&L Hardware store).
Cashbuild will continue its store expansion, relocation
and refurbishment strategy in a controlled manner,
applying the same rigorous process as in the past.
The Group has adopted IFRS 16 which replaces IAS 17.
The comparative table below summarises the impact
for the adoption of IFRS 16, Covid-19 Lockdown and
the prior year 53rd week. The table contains pro forma
financial information which has been prepared for
illustrative purposes only and, because of its nature,
may not fairly present the financial position of
Cashbuild. The pro forma financial information is the
responsibility of the directors of Cashbuild.
PROSPECTS
Group revenue for the six weeks after year-end
has increased by 22% on the comparable six week
period. Management believe trading conditions will
remain extremely challenging due to the weakness of the
national economy impacting negatively on customers’
disposable income. This information has not been reviewed
nor audited by the Company's auditor.
DECLARATION OF DIVIDEND
The board has declared a final dividend (No. 55),
of 272 cents (June 2019: 420 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 (June 2019: 24 989 811) shares in issue
at date of dividend declaration. Net local dividend
amount is 217.6 cents per share for shareholders
liable to pay Dividends Tax and 272 cents per share
for shareholders exempt from paying Dividends Tax.
The total dividend for the year amounts to 707 cents
(June 2019: 855 cents) a 17% decrease on the prior
year. Local Dividends Tax is 20%. Cashbuild Limited's
tax reference number is 9575168712.
Relevant dates for the declaration are as follows:
Date dividend declared: Monday, 31 August 2020;
Last day to trade "CUM" the dividend: Monday,
21 September 2020; Date to commence trading "EX"
the dividend: Tuesday, 22 September 2020; Record
date: Friday, 25 September 2020; Date of payment:
Monday, 28 September 2020. Share certificates
may not be dematerialised or rematerialised
between Tuesday, 22 September 2020 and Friday,
25 September 2020, 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/2020/2020-year-end-results.pdf.
Ormonde
Approved by the board on 31 August 2020
Audited Unaudited Unaudited Audited IFRS 16
actual Pro forma Pro forma actual IFRS 16 adoption
2020 2020 % 2019 53rd 2019 adoption 1 July
R'million (52 wks) COVID-19 IFRS 16 (52 wks) Change (52 wks) IAS 17 week (53 wks) impact 2019
Comprehensive income
Revenue 10 091 621 - 10 712 1 10 622 - (199) 10 821
Gross profit 2 525 144 - 2 669 - 2 665 - (55) 2 720
Operating expenses 2 005 35 149 2 189 3 2 135 (23) (3) 2 161
Operating profit 520 109 (149) 480 (10) 530 23 (52) 559
Finance costs (126) 2 188 64 19 54 - - 54
Profit before tax 394 110 39 543 (7) 584 23 (52) 613
Headline earnings 259 76 28 363 (14) 421 23 (36) 434
Earnings per share (cents) 1 176.7 336.6 122.9 1 636.2 (10) 1 823.5 101.9 (159.7) 1 881.3
Headline earnings per share (cents) 1 138.5 336.6 122.9 1 598.0 (14) 1 852.5 101.9 (159.8) 1 910.4
Financial position
Property, plant and equipment 2 395 - (1 270) 1 125 - 1 129 - - 1 129 1 225 2 354
Deferred tax 64 - (95) (31) 28 (24) (53) - 29 31 59
Lease liabilities (1 615) - 1 615 - - - - - - (1 518) (1 518)
Deferred operating lease liability - - - - - - 185 - (185) 185 -
Shareholders' equity (2 155) (76) (178) (2 409) 3 (2 337) (23) 36 (2 350) 149 (2 201)
Net asset value per share (cents) 8 470 306 713 9 489 11 8 584 93 (145) 8 636 (596) 8 040
Sponsor: Nedbank CIB
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 which is available on Cashbuild's website http://www.cashbuild.co.za/Report_2020.
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/2020/jse/isse/csb/ye2020.pdf.
Quality building materials at the best value
www.cashbuild.co.za
1 September 2020
Date: 01-09-2020 07:10:00
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