South African building materials retailer Cashbuild on Tuesday reported a 34 percent rise to 709.7 cents in diluted headline earnings per share (HEPS) for the year ended June 2008 compared with 528 cents a year ago, which had one extra week of sales.

A final dividend of 128 cents was declared – up from 94 cents a year ago. The total dividend for the year amounts to 229 cents – up 32 percent on the 173 cents of a year ago.

Revenue grew 17 percent to R4.043-billion and operating profit rose 25 percent to R227.4-million.

Stores in existence since the beginning of July 2006 or pre-existing stores accounted for 11 percent of the increase in revenue with the remaining six percent increase due to the 24 new stores the group has opened since July 2006.

"The increase for the year has been achieved on the back of steady revenue growth in the first three quarters of this financial year, with excellent growth in the 4th quarter," the group said.

During the year Cashbuild opened nine new stores, three stores were relocated and five stores refurbished.

"Cashbuild will continue its store expansion, relocation and refurbishment strategy in a controlled manner, with more than 10 new stores planned to open during the next financial year," it said.

Looking ahead, management remained confident about the trading prospects for the next quarter based on the fact that the first nine trading weeks since year-end have reported an increase in revenue in the region of 29 percent on that of the comparable nine weeks.

I-Net Bridge