Building materials group Cashbuild (CSB) on Tuesday said diluted headline earning per share increased 91% to R1‚257.5 cents for the 53 weeks ended June 30‚ from 657.5 cents for 52 weeks ended June last year.
Headline earnings per share were up 88% to R1‚255.7 cents from 668.6 cents.
The board declared a final dividend of 273 cents. A total dividend of 569 cents was declared‚ a 92% increase year on year.
“Results look favourable due to the inclusion of a 53rd week in the year to end June 2012‚ combined with the effects of Cashbuild’s Black Economic Empowerment (BEE) transaction in the prior year’s results‚” Chief Executive Werner de Jager said.
Revenue for the year increased by 11% to R6.3bn and gross profit increased by 16% to R1.5bn.
“Despite the competitive environment‚ gross profit percentage margin increased to 23.3% during this year and was 0.8% higher in percentage terms than the 22.5% achieved for the prior financial year‚” the company said.
Stores in existence since the beginning of July 2010 (pre-existing stores – 182 stores) accounted for 10% of the increase in revenue with the remaining 1% increase due to the nine new stores the group has opened since July 2010.
“This increase for the year has been achieved in tough trading conditions with selling price inflation of 3%. The growth in customer transactions of 2% of which 1% is from the existing store base remains an area of focus for management‚” Cashbuild said.
Stock levels decreased by 6%.
Overall stockholding at 63 days (June 2011: 72 days) was in line with management’s expectations.
Cash and cash equivalents decreased by 32% to R488m as a results of payments to suppliers affected prior to year-end close resulting from the 53rd week.
During the period‚ Cashbuild opened four new stores‚ 13 were refurbished and three were relocated. Four stores trading in close proximity to other Cashbuild stores were closed during the year.
The first nine trading weeks since year-end have reported an increase in revenue of 5% on that of the comparable nine weeks‚ which is an indication of the tough trading conditions‚ the company noted. - I-Net Bridge