Cashbuild diluted HEPS down 20% to 1‚004.3c

Cashbuild (CSB) has reported a 20% decline in diluted headline earnings per share (HEPS) for the year ended June 2013‚ to 1‚004.3c from 1‚252c a year ago.

Cashbuild (CSB) has reported a 20% decline in diluted headline earnings per share (HEPS) for the year ended June 2013‚ to 1‚004.3c from 1‚252c a year ago.

HEPS were 18% lower at 1‚028.3c and headline earnings declined 17% to R237.4m.

Revenue for the year was 1% higher at R6.377bn and operating profit declined 19% to R322.5m‚ largely due to operating expenses increasing by 6%.

A final dividend of 191c per share was declared‚ taking the total dividend for the year to 487c compared with 569c a year ago.

The group said trading conditions were tough‚ with selling price inflation of 2%. As expected‚ the gross margin has narrowed to more normalised levels of 22.8%.

Operational expenses for the year remained well controlled‚ with existing stores and new stores each accounting for half of the 6% increase.

The main contributor to the increase in existing stores was systems-related‚ due to the roll-out of a new IT system completed during the year.

During the financial year‚ Cashbuild opened nine new stores‚ 20 stores were refurbished and six stores were relocated. Cashbuild will continue its store expansion‚ relocation and refurbishment strategy in a controlled manner‚ applying the same rigorous process as in the past.

Looking ahead‚ the group said despite tough trading conditions‚ management was positive about top-line trading prospects for the next quarter.

The first eight trading weeks since year-end have reported an increase in revenue of 10% on that of the comparable eight weeks‚ while the gross margin remained under pressure‚ it said.