Cashbuild earnings decline on continued consumer pressure

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'We should see a better second half … and hopefully a better dividend as well': Werner de Jager– CEO, Cashbuild.

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WERNER DE JAGER: Thank you. That’s very well put. The market is tough at the moment. People and consumers are under extreme pressure and we are in the discretionary spend category. It was actually not like companies such as City Lodge, where travel wasn’t allowed. So you actually had a fairly decent time, but are you finding with the performance of the company now and consumer demand, so to speak, at this stage is it back to pre-pandemic levels? Is it back to pandemic levels, or is it still struggling along because of the interest rates?

WERNER DE JAGER: Unfortunately, in the last financial year, the second six months, we had to take a partial impairment on goodwill for the P&L Hardware business that we acquired. And in the six months with the tough environment, the plans and turnarounds in our business haven’t yet reaped the rewards that we planned. So we were forced to impair the goodwill and trademark further, to the extent that it’s actually now written or embedded fully in the books.

WERNER DE JAGER: Normally revenue earned is about 55% in the first half and 45% in the second half, so it is a bit of a lower revenue period normally for us.

 

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