Calgro M3 Holdings’s share price surged over 10% yesterday after it said headline earnings per share for the six months to August 31 would be between 73.18 cents and 84.58 cents, representing an increase of between 28.4% and 48.4%.
The company, which specialises in the development of integrated residential developments and the development and management of memorial parks, said in a trading statement that earnings per share would be between 73.18 cents and 84.58 cents.
This represented an increase of between 28.3% and 48.3%% compared to the EPS reported for the previous period.
The share price increased 10.3% to R4.69 by midday yesterday on the JSE, a price that was also 77.6% higher than at the same time a year before.
Revenue for the six-month period increased by about 13.5%, primarily driven by adapting the mix of units developed and sold in response to market conditions, successfully shifting focus to open market sales.
The high interest rate environment caused a reduction in the number of units handed over.
However, through cost management the gross profit margin was maintained.
Cash generated from operations was in line with profit after tax, both showing an increase from the previous reporting periods. Group cash and cash equivalents increased.
The group repurchased 22.6 million shares at an average price of R2.63, representing 18.6% of opening issued share capital.
Female representation across the group currently stood at 46%, working towards the target of 50% with African employment at 73%, highlighting a commitment to the empowerment plan.
The results for the six month period are expected to be published on or about October 16, 2023.
BUSINESS REPORT