Cashbuild aims to push ahead with expansion
Building materials retailer warns on tough trading as annual revenue increases 12%
Cashbuild, the bakkie builders’ go-to-store, will not retreat from its expansion plans despite warning that trading will remain extremely tough. Releasing results for the year ended-June on Tuesday, Cashbuild posted a 12% rise in revenue, mainly due to the inclusion of the P&L group that it bought for R350m in 2016. But revenue for stores that existed before July 2015 dropped 2% and selling price growth was capped at just 2%, while operating profit inched up 1%. CEO Werner de Jager said he disagreed with Clark’s assessment. "If you look at our stock levels and just go work out an average per store, we are very comfortable with [them]." Cash on hand grew 7%, to R801.4m and the group maintained its dividend cover of two times, at 390c a share. While Cashbuild’s reserves dwarf those of Italtile, the latter posted a 47% increase in cash on hand in its year to end-June, to R511m. Clark was concerned about the "significant increase" in competition for bakkie builders’ cash — especially co...
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