CALGRO M3 HOLDINGS LIMITED - Unaudited Condensed Consolidated Interim Financial Results For The Six Months Ended 31 August 2020

Unaudited Condensed Consolidated Interim Financial Results For The Six Months Ended 31 August 2020

CALGRO M3 HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/027663/06)
JSE Share code: CGR
ISIN: ZAE000109203
(“Calgro M3” or “the Company” or
“Group”)



UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE
SIX MONTHS ENDED 31 AUGUST 2020


1.   SALIENT FEATURES

     Headline losses per share increased to a loss of 26.29 cents per share (Aug 2019: 3.24
     cents per share loss)

     Basic losses per share increased to a loss of 30.46 cents per share (Aug 2019: 1.46 cents
     loss per share)

     Revenue decreased by 24% to R395.8 million (Aug 2019: R520.8 million)

     Net asset value per share decreased by 4% to 610.29 cents per share (Feb 2020: 636.12
     cents per share)

     Cash generated from operations: R115.7 million

     Net debt to equity 1.04 : 1.00

     Cash on hand R246.0 million

     No dividend has been declared for the period ended 31 August 2020 (Aug 2019: Nil)

     After concluding 12-18 months of rigorous restructuring initiatives, the internal construction
     division has been successfully closed. Management believes that the leaner business,
     together with little pressure to invest in capital intensive projects over the short-term and
     enhanced levels of liquidity, has positioned the business extremely well to deliver much
     stronger results once trading conditions post Covid-19 have normalised.

     The Group continued to generate positive cash from operations, despite the difficult trading
     conditions, resulting in the net debt to equity ratio of 1.04 to 1, which is consistent with 29
     February 2020. Cash resources remained strong with R246.0 million in cash on the
     balance sheet at 31 August 2020. Liquidity was further enhanced in September 2020 by
     securing and drawing on a new six-year, unsecured facility from the NHFC for R215.0
     million. Remaining Bond Exchange maturities up to January 2023 is R185 million, which
     will, once the Group's debt restructuring efforts are complete, reduce to R85 million.
     Memorial Parks

     Acting as a risk diversifier against the traditional lumpy and cash intensive Residential
     Property Development business, the Memorial Parks business has illustrated its potential
     in the first half by increasing cash revenue by 65.7% to R25.8 million and accounting
     revenue by 75% to R19.3 million (August 2019: R11.0 million).

     Residential Property Development

     No construction in the Residential Property Development segment took place for 2 months
     due to the pandemic. This was unprecedented and resulted in once-off costs incurred to
     ensure future sustainability and liquidity. Covid-19 costs and the associated standing-time
     amounted to R35.8 million and the costs associated with the closure of the construction
     division amounted to R12.9 million. The closure of the construction division is a strategic
     decision which in future will result in a slight additional contribution to margin.

2. SHORT-FORM ANNOUNCEMENT
 
    This short-form announcement is the responsibility of the directors of the Company. It
    contains only a summary of the information in the full announcement ("Full
    Announcement") and does not contain full or complete details. The Full Announcement
    can be viewed at:

    https://senspdf.jse.co.za/documents/2020/JSE/ISSE/CGRE/HY2021.pdf

    Copies of the Full Announcement is also available for viewing on the Company's website
    at www.calgrom3.com or may be requested in person, at the Company's registered office
    or the office of the Sponsor, at no charge, during office hours.

    Any investment decisions by investors and/or shareholders should be based on
    consideration of the Full Announcement, as a whole.

    These interim results have not been audited or reviewed by the Company's auditors,
    PricewaterhouseCoopers Inc.


By order of the Board

Wikus Lategan                                       Waldi Joubert
Chief Executive Officer                             Group Financial Director


Registered office
Calgro M3 Building
Ballywoods Office Park
33 Ballyclare Drive
Bryanston
2196
Private Bag X33, Craighall, 2024

Auditors
PricewaterhouseCoopers Inc.

Secretary
I April

Sponsor
PSG Capital

Transfer secretaries
Computershare Investor Services

Directors

WA Joubert                  Executive
WJ Lategan                  Executive
W Williams                  Executive
GS Hauptfleisch             Independent Non-Executive
H Ntene                     Independent Non-Executive
LS Ntuli                    Independent Non-Executive
ME Gama                     Independent Non-Executive
RB Patmore                  Lead Independent Non-Executive
TC Moodley                  Non-Executive
TP Baloyi                   Independent Non-Executive


www.calgrom3.com

Johannesburg
19 October 2020

Sponsor
PSG Capital

Date: 19-10-2020 07:05:00
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