SA’s largest seller of sectional title property, Balwin Properties, said on Wednesday that tough market conditions and a different product mix eroded its profit margins in its financial year to end-February. A VAT increase from 14% to 15% during the period, an increase in the mix of apartments from the Western Cape, as well as a large number of new developments all weighed on the company’s profit margin, bringing it well below the target of 35% in the year to end-February. Headline earnings per share (HEPS) fell 8% to R95.82 compared to the prior period, but the group’s net asset value per share rose 15% to 567.51c and revenue rose 6% to R2.6bn. The company increased the number of apartments sold during the period but the average selling price fell to R1,069,492 from R1,177,848 in the previous financial year. This was in line with expectations, with the lower selling price due to the difference in its product mix, the company said. The company’s gross profit margin for the year to ...
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