Construction group Calgro’s operating profit almost doubles
RESIDENTIAL-focused construction company Calgro M3 almost doubled its operating profit in the year to end-February, which it ascribed in part to its focus on converting pipeline projects into construction projects.The company, which concentrates on integrated residential developments that cater to a variety of income groups, said on Wednesday that earnings per share rose 33% from a year earlier to 152.77c, with headline earnings per share up 26.7% to 138.96c. Operating profit increased 91% to R160.2m, on revenue of R1.bn, up from R932m a year earlier.No dividend was declared. The board said this was because Calgro was in "a steep growth phase" and trading conditions were tough.Calgro said its pipeline grew to R27bn from R19bn, which would ensure work for seven to eight years. It said it intended to extend that, to enable stakeholders to look 10 years ahead.Calgro was upbeat on its prospects for the current year, saying that although the government was reducing infrastructure spendin...
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