BALWIN PROPERTIES LIMITED - Business and trading statement for the six-month period ended 31 August 2021

Business and trading statement for the six-month period ended 31 August 2021

Balwin Properties Limited
(Incorporated in the Republic of South Africa)
Registration number 2003/028851/06
Share code: BWN
ISIN: ZAE000209532
(“Balwin” or “the company” or “the group”)


Business and trading statement for the six-month period ended 31 August 2021


HIGHLIGHTS
- Approximately 1 260 apartments sold and recognised in revenue in the current period
- ~2 000 apartments forward sold beyond the interim reporting period
- Successful handover of the first phase at Greenbay (Gordons Bay), being the first Green
  Collection development in the Western Cape
- Winner of a further seven International Awards at the recent Africa and Arabia Property
  Awards, taking the total to 30 International Awards
- Opening of the Montesorri School at Kikuyu (Waterfall), the first educational facility within
  a Balwin development
- Successful conclusion of an unsecured facility of R500 million to diversify the group’s
  funding

BUSINESS UPDATE
Balwin’s results for the six-month period ended 31 August 2021 reflect a positive recovery from
the challenging market conditions experienced in the prior period as brought about by the
coronavirus pandemic. Operational activity has steadily recovered to comparable levels to
the trading environment prior to Covid-19 and has been supported by sustained sales demand
for the Balwin product.

The group continues to emphasise development quality as the foundation of the Balwin brand.
Balwin established a Department during the period to oversee the reduction of the
environmental impact of the group through innovation in design and sustainable building
techniques which is expected to benefit the environment as well as the Balwin customer
through lower living costs and reduced interest rates offered by the commercial banks through
the Green Bond.

OUTLOOK
While remaining cautious in the prevailing macro-economic climate, the board is positive on
the resilience of the Balwin product as demonstrated by the sustained demand by its
customers. This is evidenced through continued strong sales and healthy pre-sales recorded
for future years.

The board wishes to place a revised emphasis on the annuity business opportunities that are
presented through the development of the estates. Contributions from annuity income
initiatives currently constitute a negligible portion of the total profits of the group, however, the
board identifies significant potential for annuity opportunities and intends to actively pursue
these.

As consistently advised in recent communication to shareholders, the board will continue to
place an emphasis on appropriate cash management and cost containment. The recent
conclusion of a R500 million unsecured facility was a significant milestone for the group to
broaden its funding base in a cost effective manner.                                                                     

The board remains optimistic with respect to the opportunities presented through the Strategic
Integrated Projects. The group is in continued engagement with government to best position
the business to roll out these projects to the benefit of Balwin’s shareholders, prospective
customers and the South African economy. In this regard, the required capital outlay and
funding of the project continues to be given priority consideration.

The board continues to monitor the ongoing implications of the Covid-19 pandemic on the
business and management continues to prioritise the well-being of its people.

TRADING STATEMENT
The following disclosure is made in accordance with Section 3.4(b) of the JSE Limited’s Listings
Requirements:

   -   Consolidated earnings per share and headline earnings per share for the six month
       period ended 31 August 2021 are expected to increase by between 40% and 45%
       compared to the prior corresponding period. This translates into an increase of
       between 24 and 25 cents per share (2020:17.33 cents).

The financial information which this trading statement is based on has not been reviewed and
reported on by the Company’s external auditors.

It is expected that Balwin will release its results for the six-month period ended 31 August 2021
on or about 20 October 2021.


Bedfordview
9 September 2021

Sponsor: Investec Bank Limited

Date: 09-09-2021 01:20:00
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