Cashbuild closes stores, warns of 'extremely challenging' environment

It will remain “extremely challenging” out there, Cashbuild [JSE: CSB], southern Africa’s largest retailer of building materials, has warned.

Its results for the year to end-June shows a 6% increase in revenue to almost R11 billion – but excluding new stores, sales only rose by 3%. Cashbuild says that in the six weeks after year-end, revenue only increased by 1% compared to the same period last year.  

Its product prices rose by 3% over the past year.  Headline earnings per share were flat.

During the year, Cashbuild opened 11 new stores (nine Cashbuild stores and two P&L Hardware stores), while closing 14 stores.

A total dividend for the year of 855c was declared, up 2% on the prior year. Its share price was down more than 1% in early trading

Compiled by Helena Wasserman