“Cashbuild’s statement of financial position remains solid. Stock levels have decreased by five per cent notwithstanding the increase in the number of stores. Overall stockholding at 75 days, trade receivables remain well under control,” the company said.
It also reported revenue growth of six per cent to 6.7 billion rand for the year ending 30 June 2014 from 6.3 billion rand for the same period in 2013.
(READ MORE: Cashbuild reports marginal interim results)
“Revenue for the year increased by six per cent and gross profit increased by a pleasing 10 per cent,” said [DATA CSB:Cashbuild].
“Stores in existence prior to the beginning of July 2012 increased by one per cent in revenue and the 24 new stores contributed five per cent of the increase. This increase for the year has been achieved in tough trading conditions with selling price inflation of five per cent.”
Operating profit increased by 11 per cent from 322 million rand in the 2013 year to 357 million rand in 2014 and profit before income tax grew by eight per cent to 380 million rand from 352 million rand.
Earnings per share rose eight per cent in 2014 while diluted earnings per share increased by nine per cent to 1 136 cents from 1 038 cents in 2013.
(WATCH VIDEO: Cashbuild FY13 HEPS down 17%)
“Six Cashbuild DIY pilot stores were opened and trading at the end of the financial year. Cashbuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner, applying the same rigorous process as in the past,” it said.
“Management remain positive about the top line trading prospects for the next quarter. The first six trading weeks since year-end have reported an increase in revenue of 10 per cent on that of the comparable six weeks.”