Calgro M3 expects to report a substantial lift in interim headline earnings a share

The group has 3 965 units under construction, about half of which are expected to be completed before end February 2023, with 1 193 units completed during the reporting period. Photo: Supplied

The group has 3 965 units under construction, about half of which are expected to be completed before end February 2023, with 1 193 units completed during the reporting period. Photo: Supplied

Published Oct 3, 2022

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Calgro M3 Holdings, the residential and memorial parks development company, expects headline earnings per share to be between 61.28 cents and 52.72 cents in the six months to August 31, compared with 42.79 cents the same period a year before.

This equated to an increase of between 43.2% and 23.2%.

Notwithstanding the sharp increase, the share price slipped 2.2 percent to R2.65 on Friday morning The share price is only slightly down from R2.89 a year ago, having slipped in value steadily over the past three months from R3.32.

Earnings per share was expected to be between 61 cents and 53.08 cents, compared to 39.56 cents a year before, representing an increase of between 54.2% and 34.2%.

The group has 3 965 units under construction, about half of which are expected to be completed before end February 2023, with 1 193 units completed during the reporting period.

The gross profit margin remained within the target range of between 20% and 25%.

In line with the expectations previously communicated and taking the number of units under construction into account, cash resources reduced compared to the previous reporting period.

Interest bearing borrowings had been cut by 3% while undrawn facilities and overdrafts of R450 million were maintained.

The group maintained its previously reported female representation level of 44% and its longer term target of 50% female representation remained on track across all reporting levels. African employment levels reached 60 percent from 57% as at February 28, 2022. The interim results are expected to be published on October 17.

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