Cashbuild lifts revenue in ‘difficult year’

Posted On Wednesday, 23 January 2008 02:00 Published by Commercial Property News
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Building materials retailer Cashbuild this week said revenue moved up 15% year on year during the second quarter to December, with new stores contributing 6% of the growth

Pat Goldrick CashbuildBuilding materials retailer Cashbuild this week said revenue moved up 15% year on year during the second quarter to December, with new stores contributing 6% of the growth.

The retailer said it had opened 17 shops since July 1 2006. Its existing shops contributed 9% of revenue growth. It opened two new shops in the quarter, taking its total to 166.

The company said second quarter growth coupled with growth it had seen in the first quarter equated to a 15% increase in revenue in the half-year.

Chris Gilmour, an analyst with Absa Asset Management Private Clients, said Cashbuild’s revenue growth was “superb” as it had experienced a difficult year.

Last year it introduced trading on Sundays and free deliveries within a specific radius, which led to once-off costs, Gilmour said.

The number of transactions during the quarter increased 12%. During the half-year, transactions through the tills also increased 12%, with 5% coming from existing shops.

Cashbuild improved volumes, with units sold down 2% compared with a first quarter decrease of 6%. Existing shops decreased 7% compared with a 12% decrease in the first quarter.

During the half-year, total volume decrease was 4%, with existing shops decreasing 10%.

Gilmour said it was a “bit concerning” that volumes had not fully recovered. Cashbuild should benefit from the higher inflationary environment as people repaired rather than replaced.

Last modified on Tuesday, 02 July 2013 22:05

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