Cashbuild revenue up but activity declines

Published Mar 13, 2013

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Building material retailer Cashbuild increased its revenue by 2 percent to R3.3 billion and its operating profit fell 6 percent to R169 million in the six months to December. Shane Thoresson, a director at Cashbuild, said yesterday the company’s stores had experienced a decrease in activity in the past few months. He added that this drop was also experienced in the retailer’s rural operations. Although basic and headline earnings a share fell 1 percent, Cashbuild kept its interim dividend the same as the year before at R2.96. “There has been pressure on consumers’ disposable income coupled with increased fuel prices, as well as the rise in unsecured lending,” Thoresson added. Cashbuild said it would continue with its store expansions and development strategy and had opened a total of six stores during the last calendar year. Management expects trading conditions to remain under pressure during the next quarter and will continue to focus on store development, taking advantage of business opportunities and containing operating costs. The shares fell by 1.44 percent to close at R129.90 yesterday. – Nompumelelo Magwaza

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