Wrap Text
Summarised Audited Consolidated Financial Results For The Year Ended 29 February 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”)
SUMMARISED AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR
ENDED 29 FEBRUARY 2020
1. SALIENT FEATURES
Headline earnings per share increased by 108.7% to 1.77 cps (2019 restated: 20.30 cents
loss per share)
Earnings per share increased by 51.8% to 3.84 cps (2019: 2.53 cps)
Revenue decreased by 1.3% to R984.1 million (2019: R997.1 million)
Net asset value increased to 636.12 cents (2019: 629.41 cents)
South Hills development won the United Nations (UN) Sustainable Cities and Human
Settlements award
Cash generated from operations: R464.2 million (2019: R298 million)
Net debt to equity 1.04 : 1.00
Cash on hand R255.1 million
No dividend has been declared for the year ended 29 February 2020 (2019: Nil)
Calgro M3 specialises in Residential Property Development, Memorial Parks and
Residential Rental Investments providing innovative, cost efficient solutions of the highest
quality across these businesses. We are pleased to report that good progress has been
made to turn the business around, with cash generated from operations increasing by
55.6% and net cash generated from operating activities increasing by 69.9%, enabling the
Group to settle, on a net basis, R52.7 million in financing activities, and still being able to
increase cash balances by 108.0% to R255.1 million.
Residential Property Development
With a pipeline of 36 686 opportunities, of which 7 326 are fully serviced, 2 393 (including
units where construction was previously suspended) under construction in various stages
across seven projects, the Group is now well positioned with sufficient working capital to
recommence sales and continue with construction. With enough serviced opportunities
available, the commencement of installation of new infrastructure should be forthcoming
once the required Government funding is made available.
Memorial Parks
Revenue for the first six months decreased by 7.3% and actual grave sales by 15.4%, with
the business experiencing a notable lag during that period. Several corrective actions were
implemented, and the initiatives ensured full year revenue growth of 22.8% to R25.7
million, thereby reversing the momentum lost in the first six months, even though this
period is traditionally quieter.
Residential Rental Investments
The short-term focus is to dispose of all existing rental units and to utilise proceeds from
the disposals to settle debt and have cash available to invest in out of the ordinary
opportunities that may become available. The Group is in advanced discussions with third
parties to sell units in the Ruimsig and Scottsdene developments as a bulk transaction. In
South Hills, free-standing houses are being sold in the open market as the attractiveness
of these free-standing houses within security estates in the lower end of the market, is
increasing.
Once the disposals are complete, Calgro M3 will no longer have a residential rental
property portfolio. However, in keeping with the Group's variable cost and risk model, once
liquidity returns to a satisfactory level, the residential rental property portfolio will be re-
established.
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 found at:
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/CGRE/FY2020.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 annual results have been audited by the Company's auditors,
PricewaterhouseCoopers Inc., who expressed an unmodified audit opinion thereon. The
full auditor's report includes details of key audit matters. This auditor's report is available,
along with the annual financial statements, on the Company's website at
https://www.calgrom3.com/index.php/investors/financial-results.
By order of the Board
Wikus Lategan Pumla Radebe
Chief Executive Officer Chairperson
Registered office
Calgro M3 Building
Ballywoods Office Park
33 Ballyclare Drive
Bryanston
2196
Auditors
PricewaterhouseCoopers Inc.
Secretary
I April
Sponsor
PSG Capital
Transfer secretaries
Computershare Investor Services
Directors
MN Nkuhlu Executive
W Williams Executive
WA Joubert Executive
WJ Lategan Executive
GS Hauptfleisch Independent Non-Executive
H Ntene Independent Non-Executive
ME Gama Independent Non-Executive
PF Radebe (2) Independent Non-Executive Chairperson
RB Patmore Lead Independent Non-Executive
LS Ntuli (1) Independent Non-Executive
TP Baloyi (1) Independent Non-Executive
1. Appointed on 23 March 2020.
2. Indicated that she will resign after the AGM of 26 June 2020. Her resignation at that time
will be immediate.
www.calgrom3.com
Johannesburg
18 May 2020
Sponsor
PSG Capital
Date: 18-05-2020 01:00:00
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