Calgro M3 CEO pleads for patience
Land invasions hold the home-builder back
Calgro M3’s CEO Wikus Lategan, has asked investors to be patient, saying that land invasions, which prevented the property group from delivering houses in 2018, will not derail it from achieving its growth plans. Illegal land invasions cost the company about R71m in its financial year to February, weakening net profit which fell from R120.8m to R1.2m. Lategan is trying to restructure Calgro to earn equal amounts of revenue from its three businesses — home-building, rentals and memorial parks — within the next six years.
“We had quite a few challenges in 2018. A big part of these were the land invasions. But we managed these which was an expensive process and people did not actually get to our sites so we were still able to develop houses. I believe that we will able to put 2018 behind us and do better in 2019,” he said. Calgro’s revenue including that of joint venture and associated projects fell 44% to R1.3bn. A land invasion at its Scottsdene development cost R27.9m ...