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Johannesburg - Calgro M3 Holdings CEO Ben Pierre Malberbe is positive about the rest of the year after the group reported a 27% increase in headline earnings for the six months to August.
"I think we've got a fair set of results," Malberbe told Fin24 in a video interview.
The integrated residential development company reported that headline earnings per share (Heps) increased by 26.92% to 50.97 cents (August 2013:40.16c). Earnings per share (EPS) increased by 39.19% to 55.90c (August 2013:40.16c).
Profit after tax went up by 39.20% to R71m.
The operating profit margin increased 70% to R57.2m from R33.6m in the corresponding period and profit after tax went up by 39.20% to R71m.
However revenue, reported at R412m, was down 5.3% from R435m.
"Revenue is down as a result of us entering into a phase of more infrastructures, our profit went up accordingly, but we've had a late start to the year," said Malberbe.
Watch the full interview
He said this was caused by some delays on some of its major projects.
“While the directors are slightly disappointed by the Group’s results and its growth, both of which were lower than anticipated, these were impacted by continued difficult trading conditions in the development and construction industries, and a worker strike in the metals sector which resulted in delays,” explained Malberbe in a statement.
He told Fin24 that profit margins will remain under pressure going forward.
"We'll see our profit margins come down a little bit because of our exposure to infrastructure or the high exposure to infrastructure."
However, he added that revenue will also tick up because of the infrastructure projects.
"We are just going through a phase where we got high revenue and lower margins, but we expect the margins still to be presentable margins, up from last year."
He said the group expects to catch up with revenue that it left behind.
"Overall I think we are in a growth path. The company is back on the growth path," Malberbe concluded.
- Fin24
