Building materials retail chain Cashbuild has declared a final dividend of 272c a share for the financial year ended June 28.

This brings its total dividend for the year to 702c a share – a 17% decrease compared to the prior year.

Revenue for the year decreased by 7% to R10.09-billion. 

Normalised basic earnings a share decreased by 10% to R16.36, while headline earnings a share decreased by 14% to R15.98.

Cashbuild’s balance sheet remains strong, with no debt, Cashbuild CE Werner de Jager points out.

During the year, Cashbuild opened 11 new stores (eight Cashbuild stores and three P&L Hardware stores), refurbished 15 stores and relocated one Cashbuild store. Cashbuild closed eight stores (seven Cashbuild stores and one P&L Hardware store).

"Cashbuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner, applying the same rigorous process as in the past," the company says.

Operating expenses, including for new stores, remained well controlled and decreased by 7% resulting in a 7% year-on-year decrease in operating profit.

Meanwhile, group revenue for the six weeks after year-end has increased by 22% on the comparable six-week period in 2019. Management believes trading conditions will remain "extremely challenging" owing to the weakness of the national economy impacting negatively on customers’ disposable income, it says.

“We are pleased with the 22% sales growth reported for the first six weeks since financial year end. Trading conditions are expected to be challenging as South Africa moves towards uncertain economic times," says De Jager.

The impact of Covid-19 on revenue as a result of stores closing during the lockdown is estimated to be a decrease of R621-million. Based on forecasts performed before lockdown on the basis of year-to-date trends, the estimated R621-million is the difference between the forecast and actual achieved during the lockdown period.