CALGRO M3 HOLDINGS LIMITED - Summarised Audited Consolidated Financial Results For The Year Ended 28 February 2022

Summarised Audited Consolidated Financial Results For The Year Ended 28 February 2022

CALGRO M3 HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/027663/06)
JSE Share code: CGR
ISIN: ZAE000109203
(“Calgro M3” or “the Company”)


SUMMARISED AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR
ENDED 28 FEBRUARY 2022


1.   SALIENT FEATURES

     Headline earnings per share increased to 105.63 cents per share (cps) from a headline
     loss per share of 15.17 cps in 2021

     Earnings per share increased to 108.58 cps (2021: 14.88 cps)

     Revenue increased by 50.3% to R1 321.6 million (2021: R879.1 million)

     Net asset value per share increased by 16.38% to 793.81cps (2021: 682.09 cps)

     Net cash generated from operations: R129.9 million (2021: (R3.0) million cash utilised in
     operations)

     Net debt to equity ratio improved from 0.99 to 0.71

     Gross profit margin returned to 21.3%

     Cash on hand totaling R191.1 million

     No dividend was declared for the year ended 28 February 2022 (2021: Nil)

     Residential Property Development

     With 4 583 opportunities under construction (compared to 4 654 a year ago), 2 685 units
     completed and a pipeline of 24 563 opportunities due to the subsequent disposal of
     Safdev Tanganani (Pty) Ltd and the densification of various projects, the Group is well
     positioned, sufficiently capitalised and has liquidity to address market demand. With
     improved design layouts and densifications, Calgro M3 has increased the number of
     opportunities in the Fleurhof, South Hills and Witpoortjie developments by more than
     5 000 opportunities. No additional capital costs other than professional fees, which were
     not capitalised, were incurred to achieve this. Future internal infrastructure costs were
     reduced, and this will enhance the gross profit margin over the next 18 to 36 months.

     Limited infrastructure investment took place during the year but the Group is planning on
     self-funding approximately R120million of infrastructure investment during the 2023
     financial year.
     Memorial Parks

     With 2 324 burial opportunities sold in the year (2021: 1 769), and a remaining total
     pipeline of 101 545 burial opportunities in addition to other products at current parks, the
     Group is well positioned and remains bullish on growth opportunities in this business
     segment. Memorial Parks is a key expansion area for the Group with the medium-term
     objective being to grow cash receipts from Memorial Parks to support all Group overheads
     and interest obligations.

     Overall, the Company is well positioned for growth, resulting from:
     - Strong cash flow;
     - Lean overhead structure;
     - Ample residential and burial serviced opportunities; and
     - Strong sales across markets.

2.   SHORT-FORM ANNOUNCEMENT

     This short-form announcement is the responsibility of the directors of the Company. It
     contains only a summary of the information in the full announcement ("Full
     Announcement") and does not contain full or complete details. The Full Announcement
     can be found at:
     https://senspdf.jse.co.za/documents/2022/JSE/ISSE/CGRE/FY2022.pdf

     Copies of the Full Announcement is also available for viewing on the Company's website
     at www.calgrom3.com or may be requested in person, at the Company's registered office
     or the office of the sponsor, at no charge, during office hours.

     Any investment decisions by investors and/or shareholders should be based on
     consideration of the Full Announcement, as a whole.

     These annual results have been audited by the Company's auditors, PwC Inc., who
     expressed an unmodified audit opinion thereon. The full auditor's report includes details
     of key audit matters and is available, along with the annual financial statements, on the
     Company's website at https://www.calgrom3.com/index.php/investors/annual-reports


By order of the Board
Wikus Lategan                                         Hatla Ntene
Chief Executive Officer                               Chairperson


Johannesburg
16 May 2022

Sponsor
PSG Capital

Date: 16-05-2022 07:05:00
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