Site invasions, water and electricity issues derail Calgro’s 2018
The company has warned its earnings have nosedived in the year to February
The CEO of Calgro M3 says 2018 was the worst financial year he has experienced since joining the affordable housing group 11 years ago as site invasions by squatters, construction delays and water and electricity shortages brought pressure to bear on its rental business. Water shortages and site invasions as well as the unavailability of electricity at one of its developments sent Calgro's operating costs soaring with the company incurring R200m worth of once-off items, CEO Wikus Lategan said on Friday after the release of a profit warning for the year to February.
The company said its earnings per share and headline earnings per share for the financial year to February 2019 were expected to be more than 20% lower compared with the year to February 2018. This meant Calgro M3 could slip into a loss per share. Earnings per share for 2019 were expected to decrease to between a profit of 11.36c per share and a loss of 7.42c per share, compared with the 93.91c per share profit repo...