Cashbuild revenue up

Stores opened since 1 July 2007 (new stores - 20 stores) contributed 10% of the increase, whilst existing stores (161 stores) contributed 19%.

Transactions through the tills during the third quarter increased by 13% with new stores adding 9% and existing stores 4%.

Units sold increased by 19%. Existing stores increased by 9%. No new stores were opened during this quarter.

"In line with our strategy, one store was closed (trading in close proximity to two existing stores), bringing the number of stores trading at the end of the quarter to 181.

"One store was relocated during this quarter and no refurbishments done," it said.

Looking ahead, management said it is very pleased with the growth in revenue experienced during this quarter, which is positively enhanced by the fact that Easter fell in this quarter during the prior year.

Management remain positive regarding trading for the fourth quarter.

With the substantial reduction in the price of steel in recent months, the prices of steel-related products have decreased accordingly.

This being a big portion of Cashbuild's business, as well as the level of stockholding has, and will in the next quarter have a short-term negative effect on gross margins as Cashbuild has marked down existing stockholding in line with its strategy of lowest everyday pricing.

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