Calgro M3 has posted its results for the year ended 28^th February 2025, reporting an improvement in its gross profit margin to 29.43%, exceeding the Group’s target range of 20% to 25%, which benefited from historic land and infrastructure costs.

For the year, Group revenue and profit declined by 32.68% and 15.19% respectively because of its decision to slow production during the first half due to political uncertainty as well as to unlock existing stock value by leveraging prior investments in land and infrastructure costs. The Group’s administrative expenses decreased by 2.71% to R95 million.

Calgro M3’s residential property development segment remains the most significant contributor to its performance with nine active projects in Gauteng and the Western Cape ranging from fully subsidised to premium homes above R3 million. The Group secured 36 000 residential opportunities at the end of its financial year with its pipeline including the newly acquired Bankenveld District Club Development which will add + 20 000 units to its pipeline.

Despite challenging economic conditions and its large volume of stock on hand, the Group says it prioritised the completion of infrastructure installations across its existing development pipeline with significant progress being made in completing bulk infrastructure requirements in its Fleurhof development.

Currently, Calgro M3 has 1 543 housing opportunities under construction with projects at various stages of completion.

The Group’s Memorial Parks segment delivered another year of growth with its revenue contribution increasing to 8%, up from 4% in the previous year, expanding its footprint to six active Memorial Parks. Cash receipts grew by 41.3%.

“This upward trend reflects success in our improved sales strategies, increased market penetration, and enhanced customer confidence. Layby cash receipts saw an exceptional 57.5% increase to R24.57 million, underscoring the effectiveness of our structured payment options in driving affordability and accessibility,” comments CEO, Ben Pierre Malherbe.

Its share of profit from joint ventures surged to R43 million (2024: R9 million), mainly driven by the strong performance of the South Hills joint venture which was prioritised due to the relative stage of completion at the time of national elections.

Earnings per share (EPS) decreased to 171.72 cents (2024 (restated): 191.10 cents), while headline earnings per share (HEPS) decreased to 171.36 cents (2024: (restated) 188.95 cents).

The Group’s Net asset value (NAV) increased by 12.07% to R14.86 per share (February 2024 (restated): R13.26 per share).

A final gross cash dividend of 8.63703 cents per ordinary share was declared.