Calgro M3’s memorial parks and real estate investment trust (Reit) businesses are expected to each contribute a third to revenue in future. The decision by the company to diversify into new areas is paying off, with the result that these two ancillary businesses may be larger than the original business within a few years, according to an analyst. CEO Wikus Lategan has said previously the company’s plan was to have three businesses that each contributed a third to earnings, thereby diversifying against the risks of operating only one business. These are its traditional home-building business, its investment in a Reit and its owning and managing of memorial parks. Portfolio manager at Alpha Wealth Keith McLachlan said Calgro had invested in two businesses that offered tremendous scope and that the company was in a very strong position, which promised impressive growth over the next two years. "The company has positioned itself well against a series of risks. They do not face competiti...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.