Johannesburg - Listed Balwin Properties, one of the largest sectional title home builders in South Africa, anticipates its headline earnings a share for the six months to August to be between 33 percent and 38 percent lower than the previous corresponding period.
This equates to headline earnings a share of between 36 cents and 39c compared with 58c in the prior period.
Balwin yesterday attributed the decline to a 21 percent to 28 percent reduction in profit after taxation, which it said was driven by delays in the registration of transfer of 277 units that had been sold at end-August, but whose transfer had not been registered at the Deeds Office, and an increase in the weighted average number of ordinary shares in issue following the listing of the company in October.
Chief executive Stephen Brooks said the group had successfully launched several new developments in close succession and the lower profit during the period was a timing issue linked to the fact that first phases of new developments typically took longer to register than subsequent phases with the Deeds Office.
“The backlog of registrations, which impacted (on) this period’s results, is being processed and going forward, new development launches will be more staggered to reduce such impact. We are confident this revenue will be realised for the full financial year,” he said.
Balwin expects to release its interim financial results on November 15. Shares plunged 9.52 percent to close at R7.98.