Calgro M3, which develops affordable housing with the government, saw group revenue rise 25.7% to R720m in the interim period to August. The group acknowledged a big jump in operating profit of 82.5% for the period to R114m was due to its Fleurhof property development now being accounted for as a subsidiary of the company, and not being equity accounted as previously. In the meanwhile, combined revenue — including from joint ventures and associates — fell 9.9% to R923m in the six months, mainly due to a slowdown in government infrastructure investment in the lead up to recent municipal elections. The group said community unrest at various projects, the worst being at South Hills, in the south of Johannesburg, saw that project brought to a standstill. "I think it has been a challenging period," Wikus Lategan, MD of Calgro M3, said on Monday. "It is no secret that the government’s budget has been under pressure for some time now," Lategan said. He said the results were "satisfactory g...
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