skip to main content
Find Insight DIY on
* * *

International DIY News

Cashbuild reports 5% rise in revenue

Cashbuild website - August 2018 725 x 500

Cashbuild - southern Africa’s largest retailer of quality building materials and associated products - has reported on annual trading for the year ended 30th June 2018.

Financial highlights

- Revenue for the year increased by 5% to R10.2bn

- Revenue for stores in existence prior to July 2016 (pre-existing stores – 276 stores) remained at similar levels while our 42 new stores provided the 5% increase.

- Gross profit increased by 4% with gross profit percentage decreasing from 25.5% to 25.2%. This was achieved in tough trading conditions with selling price inflation of 2%.

- Operating expenses, including new stores, remained well controlled and increased by only 9% (existing stores 3% and new stores 6%). Notwithstanding this, the increase in revenue did not compensate for the increased expenses, resulting in operating profit decreasing by 12%.

- Basic earnings per share decreased by 10% with headline earnings per share also decreasing by 9% from the prior year. The effective tax rate of 28.4% for the period is similar to that of the previous period. Cash and cash equivalents increased by 19% to R953 million.

- During the year, Cashbuild opened 25 new stores (11 Cashbuild stores, six P&L Hardware stores and acquired eight stores which were converted to P&L Hardware stores), refurbished 27 stores and relocated six Cashbuild stores.

- Cashbuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner, applying the same rigorous process as in the past.

Prospects

Group revenue for the six weeks after year end has increased by 1% on the comparable six week period. Management believe trading conditions will remain extremely challenging. This information has neither been reviewed nor audited by the company’s auditor.

Source : Cashbuild

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.

29 August 2018

Related News

view more International DIY News
*

Insight DIY always publishes the latest news stories before anyone else and we find it to be an invaluable source of customer and market information.

*
Max Crosby Browne - CEO, Home Decor
Newsletters

Don't miss out on all the latest, breaking news from the DIY industry