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CASHBUILD LIMITED - Second quarter operational update - FY2021 and Trading Statement

Release Date: 25/01/2021 12:16
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Second quarter operational update - FY2021 and Trading Statement

CASHBUILD LIMITED
(Registration number: 1986/001503/06)
(Incorporated in the Republic of South Africa)
JSE share code: CSB                     ISIN: ZAE000028320
(“Cashbuild” or “the Group”)

SECOND QUARTER OPERATIONAL UPDATE – FY 2021 AND TRADING STATEMENT

Cashbuild herewith provides its voluntary quarterly operational update.

Revenue for the second quarter for the Cashbuild Group was up 21% on the second quarter of the prior
financial year. The 303 existing stores revenue increased by 19% and the 14 new stores contributed 2%. This,
combined with the growth reported in the first quarter, equates to an increase in revenue for the half year of
21% compared to the prior half year.

Transactions through the tills during the second quarter for the Cashbuild Group increased by 10% (half year:
14%) to that of the comparative period, with existing stores increasing by 7% (half year: 11%) and new stores
increasing by 3% (half year: 3%).

Selling inflation was 4.5% at the end of December 2020 when compared to December 2019.

A revenue performance breakdown per operating segment is reflected in the following table:

Revenue performance 1st Half FY2021 versus 1st Half FY2020

Operating Segment                                   Percentage      Total       New      Existing
                                                     of Total      Growth     Growth      Growth
                                                       Sales          %          %           %
Cashbuild South Africa                     Q1            80           25         4           21
                                           Q2            80           23         2           21
                                        Half Year        80           24         3           21

Cashbuild Common Monetary Areas            Q1             6           28         -           28
                                           Q2             6           27         1           26
                                        Half Year         6           28         1           27

Cashbuild Other *                          Q1             4           14         2           12
                                           Q2             5           24        (1)          25
                                        Half Year         4           19         -           19

P&L Hardware South Africa                  Q1            10           7          3            4
                                           Q2             9           -          2           (2)
                                        Half Year        10           4          3            1

Total Group                                Q1           100           22         3           19
                                           Q2           100           21         2           19
                                        Half Year       100           21         2           19
*Botswana, Malawi and Zambia

During the second quarter, the Group opened one new Cashbuild store (half year: three Cashbuild), refurbished
one P&L Hardware store (half year: 11 Cashbuild and one P&L Hardware), relocated one Cashbuild store and
one P&L Hardware store (half year: two Cashbuild and one P&L Hardware) and one P&L Hardware store was
closed at the expiration of its lease agreement (half year: one Cashbuild and three P&L Hardware), bringing
the total number of stores trading at the end of the quarter to 317.

A store breakdown by operating segment is reflected in the following table:

Number of stores – end of quarter two      Percentage  Total            New    Existing
                                            of total
Cashbuild South Africa                          72      229             10         219
Cashbuild Common Monetary Areas                  5       16              -          16
Cashbuild Other *                                4       13              1          12
Cashbuild DIY Pilot stores                       -        1              -           1
P&L Hardware South Africa                       19       58              3          55
Total Group                                    100      317             14         303
*Botswana, Malawi and Zambia

Trading statement

Shareholders are advised that Cashbuild is currently finalising its interim results for the six months ended 31
December 2020 (“Interim Period”) which are expected to be released on or about 2 March 2021. In accordance
with paragraph 3.4(b) of the JSE Listings Requirements, shareholders are therefore advised that:

1.      headline earnings per share (“HEPS”) are expected to increase by a minimum of 100% to 1,524.8
        cents for the Interim Period, compared to HEPS of 762.4 cents for the prior comparative period of 31
        December 2019 (“Prior Period”); and
2.      earnings per share (“EPS”) are expected to increase by a minimum of 100% to 1,496.0 cents for the
        Interim Period, compared to EPS of 748.0 cents for the Prior Period.

The above is mainly attributable to the revenue growth amidst continued cost control.

A further trading statement will be released once Cashbuild has reasonable certainty on the range of the
increase in HEPS and EPS respectively.

The above information has not been reviewed or reported on by Cashbuild’s auditors.

25 January 2021

Sponsor
Nedbank CIB

Date: 25-01-2021 12:16:00
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