Calgro warns of wider loss due to Covid-10

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Calgro warns of wider loss due to Covid-10

Published Date: 2020-09-30 | Source: Stephen Gunnion | Author: Stephen Gunnion

Calgro warns of wider loss due to Covid-10

After returning to profitability in the second half of last year, the property developer says Covid-19 impacted its performance this year.

Calgro M3 has warned of a bigger half-year loss after it halted construction activities for more than three months due to Covid-19.

In a trading statement, the company, which specialises in residential property development and memorial parks, said apart from the impact on revenue it also incurred additional costs. Covid-19-related expenses and the associated standing time amounted to R35.8 million and the costs associated with the closure of its construction division amounted to an additional R12.9 million. Despite the difficult trading conditions, it said cash generated from its operations placed it in a strong liquidity position.

For the six months to end-August, Calgro expects to report a loss per share of between 30.31c and 30.61c, up from last year's interim loss of 1.46c. Its headline loss will widen to between 26c and 26.6c per share from last year's 3.24c loss.

The expected loss will wipe out progress made in the second half of last year, when it reported a profit after making progress in turning the business around. As part of that, it restructured its property development business with the phased closure of its in-house construction division and the outsourcing of all construction activities.

It expects to release its results on 19 October. Its shares closed unchanged at R2.70 yesterday.





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