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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now