Calgro M3 warns of first-half loss


Calgro M3 warns of first-half loss

Published Date: 2019-10-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Calgro M3 warns of first-half loss

The affordable housing developer suspended operations on some projects to preserve cash, impacting profit for the period.

Calgro M3 says it will report a loss for the first-half of its financial year after measures taken to preserve capital impacted its profitability.

In a trading update, the affordable housing and memorial parks developer said it expected a headline loss of 3.24c per share for the six months to end-August, down from headline earnings of 3.11c per share a year earlier. Basic earnings are expected to swing from a profit of 23.78c per share to a loss of 1.46c per share.

The group suspended operations on various developments over the period in order to preserve cash and mitigate risk. However, this impacted gross profit as a result of standing time and associated costs being incurred as it scaled down across operations.

Calgro M3 said it had stabilised cash flows, generating positive cash from operations of R450 million, without have to sell off any of its assets outside the ordinary course of business. Cash on hand increased by 67.5% to R205 million. It didn't undertake any corporate action during the six months when compared to the prior period.

Its shares declined 1.2% to R4.26 yesterday

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