18 December 2017 02:56:59 PM

Calgro M3 Holdings' profit after tax impacts financial performance

- 2017-10-09 04:27:45 PM

Calgro M3 Holdings Limited advised shareholders that the company’s Headline earnings per share (“HEPS”) for the six months ending 31 August 2017, is expected to be 47.71 cents per share compared to 65.13 cents per share reported in the previous corresponding period. This equates to a decrease of 26.74%.

Earnings per share (“EPS”) for the six months ending 31 August 2017, is expected to be 47.71 cents per share compared to 65.11 cents per share as reported in the previous corresponding period. This equates to a decrease of 26.72%.

The Group’s profit after tax was impacted by the construction of units for the AFHCO Calgro M3 Consortium (Pty) Ltd (REIT JV), in which Calgro M3 has a 49% shareholding. The Group’s shareholding in the REIT JV has resulted in 49% of the development profit (construction and other services) being eliminated on consolidation as an unrealised profit, as prescribed by International Financial Reporting Standards (IFRS). This unrealised profit is carried on the balance sheet until it realises in future financial years, once the units are completed, tenanted and the portfolio has been revalued.

The impact of this unrealised profit is substantial to the financial performance and has necessitated the Group to institute new metrics to measure operational performance between reporting periods, as well as to give all stakeholders an indication of the Group’s performance that is consistent between periods. The below two metrics are described as follows:

Core Earnings per share (“Core EPS”) – Earnings per share before elimination of unrealised profits from development of units for the REIT JV

Core Headline Earnings per share (“Core HEPS”) – Headline Earnings per share before elimination of unrealised profits from development of units for the REIT JV

Core earnings per share (“Core EPS”), is expected to be 77.1 cents per share compared to 65.11 cents per share in the previous corresponding period. This equates to an increase of 18.42%.

Core headline earnings per share (“Core HEPS”) is expected to be 77.1 cents per share compared to 65.13 cents per share in the previous corresponding period. This equates to an increase of 18.38%. The Memorial Parks business is showing pleasing results and an update on the continued construction in the Western Cape will be detailed in the interim results commentary.


The financial information on which this trading statement is based has not been reviewed or reported on by the company’s auditors.

The interim results for the 6 months ended 31 August 2017 are expected to be released during the week of 16 October 2017.

 
 

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