Building materials retailer Cashbuild expects its full-year earnings to rise as much as 12%, it said on Tuesday.
The group, valued at R3.5bn on the JSE, said in a trading statement that it expected headline earnings per share (HEPS) for the 52 weeks to end-June to be between 1,013.5c and 1,060.9c, an increase of between 7% and 12%.
Earnings per share were expected to be between 1,011.3c and 1,063.4c compared with 396.4c a year ago.
The group, which supplies its largely cash-paying customer base through 318 stores with building materials and related products, recently reported a 4% rise in revenue in the fourth quarter, with SA accounting for 82% of total sales.
Transactions through the tills during the fourth quarter increased by 6% from the previous period, with existing stores increasing transactions by 5% and new stores 1%.
For the full year, the group opened eight new stores and closed 12 stores — 11 P&L Hardware stores and one Cashbuild store.
During the fourth quarter it refurbished 10 stores, 26 during the full year, bringing the total number of stores trading at the end of the year to 318.
In April, Cashbuild announced plans to acquire 60% of Allbuildco Holdings for R93m as part of the group’s strategy to serve a broader customer base across all income levels in SA.
The company aimed to use its scale and expertise to grow the Allbuildco business, it said.
Cashbuild expects Allbuildco to provide it with a growth platform to target a customer base it has not previously served.
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