Balwin makes second-half comeback


Balwin makes second-half comeback


Published Date: 2021-05-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

Balwin makes second-half comeback

Sales were supported by the development of an online sales portal and ongoing demand for its residential properties.

Balwin Properties says tough macroeconomic conditions and the devastating impact of Covid-19 are reflected in its full-year results. However, a second-half recovery helped reverse some of the weakness seen in the first half of its financial year.

Releasing results for the year to end-February, the residential property developer said it implemented a number of processes to mitigate the impact of the pandemic, including an online sales portal and several measures to increase the rate of construction to match the continued strong sales demand for its properties.

Although no construction activity took place from 26 March last year until the easing of lockdown restrictions to level 3 on 1 June, Balwin said it still managed to sell and recognise 2,546 apartments in revenue for the year, down from the 2,715 units it sold in the prior financial year. Sales were also supported by record low interest rates, with demand for one and two-bedroom apartments remaining strong.

Revenue declined by 7% to R2.7-billion and profit for the year fell 18% to R336-million. That resulted in headline earnings per share coming in 19% lower at 71.47c. It declared a final gross dividend of 16.2c per share.

The group said it had pre-sold 2 499 apartments beyond the reporting period. These apartments have not been recorded in revenue in the current financial year.

Although prevailing market conditions remained challenging, Balwin said pipeline investment opportunities allowed it to grow its footprint and to replace completed projects. It had expanded its secure development pipeline to 62,288 apartments across 28 developments in key target nodes. This represented an approximate 15-year development horizon, it said.

The company's shares closed 0.7% down at R4.47 yesterday.


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