Calgro M3 Holdings Limited (JSE:CGR) News - Trading Statement

CALGRO M3 HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/027663/06)
JSE Share code: CGR
ISIN: ZAE000109203
(“the Company” or “the Group”)


TRADING STATEMENT


In terms of the JSE Limited Listings Requirements (“JSE Listings Requirements”), a listed
company is required to publish a trading statement as soon as it is satisfied, with a reasonable
degree of certainty, that the financial results for the next period to be reported on will differ by
20% or more from the financial results for the previous corresponding period.

The Company hereby advises that a reasonable degree of certainty exists that for the year
ended 28 February 2022, earnings per share (“EPS”) and headline earnings per share
(“HEPS”) will increase by more than 100% to be in excess of 100 cents, compared to the EPS
of 14.88 cents and headline loss per share of 15.17 cents for the year ended 28 February
2021.

A further trading statement will be issued in terms of the JSE Listings Requirements when a
reasonable degree of certainty exists as to the likely range of the expected increase in EPS
and HEPS.

Operational performance for the period is in line with expectations communicated in October
2021 at the announcement of the 31 August 2021 interim results. The Group currently has in
excess of 4,500 units under construction with more in the process of commencing and has
completed over 2,500 units during the 2022 financial year. The gross profit margin has
returned to the target range of between 20% - 25%.

Cash flow generation remained strong, with cash generated from operations expected to be
more than double that of the 2021 financial year. Cash and cash equivalents increased by
23.6% to R191.1 million on 28 February 2022. The strong cash generation enabled the Group
to reduce its net debt to equity level to below the target for February 2023 and is ahead of that
set for the February 2024 financial year. In addition to cash on hand increasing and interest
bearing debt decreasing, the Group has settled R136.3 million in land purchase liabilities
during the year which was classified as part of trade and other payables, resulting in a
considerable decrease in total liabilities.

The financial information on which this trading statement is based has not been reviewed nor
reported on by the auditor of the Company. The audited results for the year ended 28 February
2022 are expected to be published on or about 16 May 2022.

Johannesburg
24 March 2022

Sponsor
PSG Capital

Date: 24-03-2022 10:30:00
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