Cashbuild warns of a sharp decline in earnings

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Cashbuild has warned of an earnings decline, ahead of its annual results next month
Cashbuild has warned of an earnings decline, ahead of its annual results next month
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Building materials retailer Cashbuild has warned of a sharp decline in its earnings for the year due to the impact of the level 5 lockdown in April, and the need to account for leases based on international financial reporting standards.

In a trading statement on Monday, the company said it expects headline earnings per share to decline between 36% and 41% for the year ended June 2020 due to a change in how leases are accounted for. 

The decline changes to between 10% and 15% when this requirement is excluded.

Small caps analyst Keith McLachlan said the trading update was not unexpected. He added that demand for DIY and hardware was picking up in level 2 of the lockdown. 

Cashbuild will release its annual results next month.

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