CALGRO M3 HOLDINGS LIMITED - Voluntary trading update

Voluntary trading update

CALGRO M3 HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 2004/030045/06)
Share code: CGR ISIN: ZAE000109203
(“Calgro M3” or “the company”)



VOLUNTARY TRADING UPDATE




Shareholders are advised that a reasonable degree of certainty exists that the company’s earnings
per share (“EPS”) and headline earnings per share (“HEPS”) will be between 14.18% and 17.34%
higher for the year ended 28 February 2014 (“the 2014 financial year”) when compared to the
previous comparative period.

The lower than expected increase in EPS and HEPS is primarily a function of:
-   the company not being able to transfer already constructed units to end-users on two projects;
    and
-   certain once off construction losses incurred on the Jabulani project which amounted to R28
    million for the 2014 financial year. The loss was as a result of the already reported electricity
    supply delays experienced during construction that led to an increase in holding costs, security,
    breakage, vandalism, construction escalation and additional costs in supplying power to units
    which were already occupied by third party clients. These challenges have been resolved
    subsequent to the year end and completed units handed over to clients.

This puts a damper on what should have been an excellent year for the Group.

Government’s drive towards infrastructure development, for which adequate funding is available,
has resulted in accelerated installation of infrastructure during the 2014 financial year. In addition, a
substantial financial investment was made into new projects during the 2014 financial year which
is anticipated to set the platform for sustained growth over the next 24 months.

The financial information on which this trading statement is based has not been reviewed or
reported on by the company’s independent auditors.

Johannesburg
15 April 2014

Sponsor
Grindrod Bank Limited

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