Building materials retailer Cashbuild says its strong cash position has allowed it to keep its interim dividend to end-December unchanged, though it expects weak trading conditions in light of SA’s precarious economic position to persist in its second half.
The company kept its interim dividend unchanged at 435c, with cash and cash equivalents rising 32% to R1.4bn at the end of the period, mainly due to supplier payments taking place before the start of its half year.
Revenue for the period decreased 1% to R5.56bn, with the company’s profit for the period falling 21% to R172m.
The group said it had opted to keep its dividend unchanged due to its strong cash position, even though its results reflected subdued consumer sentiment and a lacklustre economy.
“The protracted stressed economic conditions, continued pressure on the consumer, exacerbated by the high unemployment rate, will continue to place strain on the trading environment for the remainder of the financial year ending 30 June 2020,” said CEO Werner de Jager.