Trading Statement for the year ending 28 February 2018
Balwin Properties Limited
(Incorporated in the Republic of South Africa)
Registration number 2003/028851/06
Share code: BWN
(“Balwin” or “the group”)
TRADING STATEMENT FOR THE YEAR ENDING 28 FEBRUARY 2018
Balwin continued to deliver a positive trading performance for the year ending
28 February 2018 (“the period”), despite the current adverse market conditions created
by the challenging macro-economic environment. Balwin continues to experience
sustained demand for its good quality, affordable apartments and has made pleasing
progress across existing and new developments.
As previously advised to shareholders at the time of the release of the group’s interim
results to 31 August 2017, Balwin has experienced delays in obtaining town planning and
local authority approvals for the commencement of construction of certain new
developments around the country.
The delays have had an impact on the development of The Whisken (Kyalami), The Blyde
(Pretoria East), Ballito Hills (KwaZulu-Natal), The Jade (Somerset West) and Green Park
Management, together with its team of professionals, have continued to engage with the
local authorities to expedite the approval processes. Four of these developments have
now been approved to commence construction and the remaining approval is imminent.
These delays have affected a total of 696 apartments. Had these apartments been
completed, we would have achieved a slight increase in our results from the prior year.
In accordance with the revenue recognition accounting policy, the sales of these
apartments will enhance the results of the 2019 financial year.
A total of approximately 2 080 apartments are expected to be handed over for the 2018
financial year compared to 2 711 in the previous financial year. Average selling prices of
apartments have not increased compared to the previous year owing to the challenging
economic conditions and pressure on Balwin’s middle income target market customers
Owing to the factors outlined above, revenue for the reporting period will be lower than
the previous year and the group’s earnings for the period are expected to be as follows:
Year ended Year ending
28 February 28 February 2018
2017 Expected range
Earnings per share 140.64c 28.19% - 23.21% lower 101.00c – 108.00c
Headline earnings per 140.58c 28.15% - 23.18% lower 101.00c – 108.00c
The forecast financial information on which this trading statement is based has not been
reviewed or reported on by the group’s independent external auditors.
Shareholders are advised that the financial results for the year ending 28 February 2018
are expected to be released on SENS on or about 14 May 2018.
28 February 2018
Investec Bank Limited
Date: 28/02/2018 10:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Email this JSE Sens Item to a Friend.