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CALGRO M3 HOLDINGS LIMITED - Summarised Audited Consolidated Financial Results For The Year Ended 29 February 2020

Release Date: 18/05/2020 13:00
Code(s): CGR     PDF:  
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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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