Calgro M3 has published its interim financial results for the six months ended August 2024, reporting growth in revenue in its Memorial Parks division to R31.7 million.

The business accounts for 6.26% of Group revenue, with cash generation growth and cash receipts increasing by 52.8% to R52.1 million. Revenue through its lay-by option increased by R14.7 million with an active book of R40.7 million which will convert to revenue when fully settled. The segment’s gross profit margin sits at 57.08%.

Revenue in its residential property development division decreased due to reduced unit sales however, the Group banked over R200 million in cash during the first two weeks of September. During the reporting period, 869 units were handed over (August 2023: 1 193 units) while 1 539 units are under construction with most to be completed by the end of February 2025. Calgro plans to commence with a further 1 592 units that are targeted for completion during its next financial year. The Group currently has a further 2 609 serviced opportunities available that are ready for top structure construction with an additional 2 416 being serviced.

Calgro attributes its growth in gross margin of 29.69% to its strategic move to a higher mix of open market and non-public sector units as well as the project and product mix which benefits from historic land and infrastructure costs. While the number of units handed over was slightly lower than the previous reporting period, it says the positive product mix and lower infrastructure costs offset the reduction, leading to its improved gross profit margin.

Calgro’s national average sales price for its core two-bedroom family apartment was R636 617 excluding VAT during the period.

The Group’s earnings per share increased to 101.40 cents per share (August 2023: 78.88 cents per share) with headline earnings per share increasing to 101.40 cents per share (August 2023: 78.88 cents per share). Its Board elected not to declare a dividend for the period ending August 2024.

The Group’s net asset value (NAV) increased by 6.92% to R14.29 per share (February 2024: R13.37 per share) with its net debt to equity stable at 0.63 (February 2023: 0.63). Calgro’s loan-to-value ratio sits at 31.97% (February 2023: 31.04%).