Cashbuild sees life yet in SA residential building boom

Posted On Friday, 30 September 2005 02:00 Published by Commercial Property News
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Building materials retailer Cashbuild has continued with its growth streak, exceeding the R2bn mark in revenue for the year ended June 30.

Pat Goldrick CashbuildBuilding materials retailer Cashbuild has continued with its growth streak, exceeding the R2bn mark in revenue for the year ended June 30.

Cashbuild’s revenue increased 35%, from the previous year’s R1,6bn to R2,2bn.

The company’s financial director, Werner de Jager, yesterday attributed the increase to the success of the group’s strategies, especially to free local delivery and extended trading hours.

"We have enhanced our internal efficiencies, especially when it comes to stock availability. Secondly, we have extended our trading hours," he said.

Headline earnings a share increased 38,3% to 347,5c, from 251,3c. Gross profit increased from last year’s R353,3m to R483,8m. Cashbuild increased its cash levels 17% to R167m.

The company declared a final dividend of 54c a share, up 10,2% from last year’s 49c a share.

Despite the good results, the group’s share price lost 1,68%, or 75c a share, to close at R44 on the JSE yesterday.

The company has said that, "barring unforeseen circumstances or significant macroeconomic events", it would continue the growth in the next six months. Cashbuild has benefited from low interest rates, high consumer confidence and government’s drive to encourage home ownership.

De Jager said that, despite the talk of a looming "cooling-off" in the residential market, the company continued to experience growth, "with no evidence of a slowdown".

He said the group still intended to open new stores in order to spread its geographical presence in SA and beyond.

He would not say how many stores the company would open in the current financial year. The group would, however, exceed the 11 new stores opened in the year to June this year, he said.

"There are still a lot of under-served areas," he said. At the end of June this year, the company had 134 stores in SA and neighbouring countries such as Swaziland, Lesotho, Malawi and Namibia.

Last modified on Tuesday, 02 July 2013 22:32

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