Calgro - trading statement
Calgro M3 wishes to advise shareholders that the CompanyĂs headline earnings per share (˘HEPS÷) for the six months ending 31 August 2018, is expected to be 3.11 cents per share compared to 47.71 cents per share reported in the previous corresponding period. This equates to a decrease of 93.48%.
Earnings per share (˘EPS÷) for the six months ending 31 August 2018, is expected to be 23.78 cents per share compared to 47.71 cents per share as reported in the previous corresponding period. This equates to a decrease of 50.16%.
The period under review was one of the most difficult ever experienced due to:
*Macro and micro economic uncertainty coupled with uncertainty pertaining to land expropriation;
*Scottsdene and Fleurhof projects being shut down as a result of ˘illegal occupation÷ with additional security and repair cost, which was slightly offset by a variation order received on Fleurhof;
*Major electrification challenges on Fleurhof which resulted in standing time cost;
*Impact of the adoption of IFRS 15;
*Drought in the Western Cape; and
*Cancellation of the Executive share scheme and corresponding fast-tracked expense.
Furthermore, this had a negative impact on our operational cash flow, leading to the deliberate slowdown in levels of activity on other sites.
Despite these uncertainties and challenges, management has worked tirelessly to ensure that the Company has:
*A healthy Balance Sheet;
*10 projects in the ground at various phases to mitigate risk; and
*Expanded its Memorial Parks business
An analysis on the impact of all extraordinary items (including the impact of the adoption of IFRS 15) during the period will be detailed in the interim results announcement. The Company did not undertake any corporate action during the current six months when compared to the prior period.
The financial information on which this trading statement is based has not been reviewed or reported on by the CompanyĂs auditors.