Cashbuild said Monday that revenue for the second quarter of 2009 was up by 8% on the second quarter of the prior financial year.

Stores opened since 1 July 2008- 18 new stores - contributed 5% of the increase, whilst the 170 existing stores contributed 3%.

This, together with the growth reported in quarter one, equates to an increase in revenue for the half year of 9%, the company said.

Transactions through the tills during the 2nd quarter increased by 11% with new stores adding 5% and existing stores increasing by 6%.

Half year increased by 13%, new stores adding 7% and existing stores increasing by 6%.

Units sold increased by 1% after a 2% decrease in Q1.

Existing stores decreased by 4% (Q1:7% decrease), while the half year flat on prior year, with existing stores decreasing by 5%.

Four new stores were opened during this quarter (half year 5 stores) bringing the number of stores trading at the end of the half year period to 188.

Four stores were refurbished during this quarter as well as for the half year. No stores were
relocated.

On prospects, management said it was pleased with the trading experienced in all the regions over the traditionally good festive season, except Botswana, which was disappointing.

Selling price inflation during this quarter was around 1%.

"What is still pleasing is the continued excellent growth of 11% in customer transactions of which 6% is of the existing store base," it said.

"As reported during the first quarter update, in the current tough trading environment, gross profit margins remain under pressure and are at similar percentage levels as the second half of the previous financial year.

"Operating expenses are higher mainly due to the increase in staff cost with salary increases becoming effective 1 July 2009. Both of the above consequently had a negative effect on operating margins," it said.