Calgro M3 CEO Wikus Lategan on the cost of land invasions
Calgro M3 reported its full results for the year ended 28 Feb 2019. The property company struggled to keep profits and earning up in 2018 and has declared that shareholder will not earn a dividend this year. Calgro M3 CEO, Wikus Lategan joins CNBC Africa to unpack the numbers.
Mon, 13 May 2019 15:08:41 GMT
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AI Generated Summary
- Land invasions and public unrest posed significant challenges, resulting in substantial financial losses for Calgro M3.
- The company reported a positive cash flow from operations despite facing hurdles and implemented strategies to manage debt and restructure their balance sheet.
- Calgro M3 is focusing on the growth potential of its memorial park business, aiming to achieve profitability comparable to their housing segment within five years.
Calgro M3, a property development company, has recently released its full year financial results, revealing a challenging year with various obstacles impacting their profitability and earnings. In a CNBC Africa interview, CEO Wikus Lategan delved into the details of the financial report. Lategan highlighted the significant impact of land invasions on the company's projects, with losses amounting to millions of rand due to illegal occupations and public unrest. The company faced additional challenges such as electrification issues, infrastructure costs, and regulatory changes, making it a mixed bag of a year for Calgro M3. Despite the hurdles, the company managed to maintain a positive cash flow from operations, signaling resilience amidst adversity. Lategan also discussed the strategic shift towards memorial parks as a growing segment of their business, aiming for increased profitability in the coming years. The interview shed light on the company's focus on managing challenges, restructuring their balance sheet, and navigating the evolving economic landscape in South Africa.
