Let's start with the Cashbuild numbers.
There is not much commentary, just a divisional and quarterly breakdown.
We'll look at what numbers to expect from the update but will go into more details of the company when the full release comes out. Revenues for the full year 53 weeks are expected to grow 11% but they also mention that gross profit margins continue to edge higher. For the first half of this year the company managed to grow headline earnings by 24% on the back of a 9% revenue growth. So let's assume they manage to maintain this earnings growth of 24% for the full year. This is being conservative because revenues are actually up because of that extra week.
So in the first half of the year the company made 656c per share. Because they are maintaining their earnings growth from the first half, let's double this number to get an annualised figure of 1312c. The company trades at R159 on an earnings multiple of 12.11. It looks cheap for a retailer but they operate in a very competitive environment. We still like the stock at these levels especially as a potential buyout target. More details to follow when the full release comes out.