CashBuild share jumps on results

South African-based building materials retailer CashBuild Limited plans to open eight to 10 new stores between January and June this year, it said on Monday.

"CashBuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner," it said in its interim results report.

It earlier reported a 15% increase in revenue to R2 billion with seventeen new stores contributing 6% to the increase.

Diluted headline earnings per share by 28% to 344.4 cents for the interim period to December, it reported.

An interim dividend of 101 cents was declared – up 28% on the same period a year ago. Revenue rose 15% to R2 billion and operating profit grew 21% to R111.1 million.

The group said the results were boosted by a favourable December trading period. Seventeen new stores contributed 6% to the revenue increase, while existing stores as at the beginning of July 2006 accounted for the remaining 9%.

The group's total chain stores at the end of the period numbered 166. The group said its balance sheet remained solid. "Stock levels have increased by 20% on the back of higher trading volumes with the CashBuild stock model being adhered to by line management.

This increase is further attributable to the stocking of seven additional stores since the previous half year," the company said.

Looking ahead, the group said it was confident about the trading prospects for the remainder of the financial year.

"The first 10 trading weeks since half year-end have reported an increase in revenue in the region of 21% on that of the comparable 10 weeks," the company said.

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