Balwin revenue up 16% to R3.1bn
Boosted by residential selling prices, listed property Balwin, is reporting a new revenue threshold after the year ended February. Profit jumped by 18 per cent and headline earnings per share increased were up just over 6 per cent. Joining CNBC Africa for more is Balwin Chief Executive, Steve Brookes.
Mon, 16 May 2022 17:43:54 GMT
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AI Generated Summary
- Balwin achieved a revenue milestone of over R3.1 billion, with an 18% profit increase and just over 6% rise in earnings per share, fueled by residential selling prices and online sales.
- The company's focus on green initiatives and sustainability has not only boosted revenue but also resulted in substantial cost savings for customers through improved mortgage rates.
- Amidst market trends like the Johannesburg to Western Cape relocation shift, Balwin remains committed to its core markets and is exploring new avenues for growth, including annuity services and strategic funding models.
Listed property Balwin has reached a significant milestone with a revenue of over R3.1 billion, marking an 18% increase in profit and a just over 6% rise in headline earnings per share after the year ended in February. The achievement is attributed to a surge in residential selling prices and the handover of a substantial number of apartments. In an exclusive interview with CNBC Africa, Balwin Chief Executive Steve Brookes shared insights into the company's outstanding performance. Brookes highlighted the company's emphasis on online sales, which has revolutionized their business model and reduced cancellations. Every apartment is sold online, allowing customers to make purchases at their convenience, contributing to strong sales for the company. Balwin's commitment to sustainability and green practices has also influenced consumer behavior positively, translating into increased revenue. Through their green initiatives, the company has successfully leveraged financial institutions to provide clients with better mortgage rates, resulting in significant savings for customers over time. Brookes expressed confidence in sustaining the company's impressive results, even in the face of a challenging economic environment. As consumers seek more affordable housing options, Balwin anticipates a shift towards smaller, more efficient apartments. The company has observed a growing demand for properties in the Western Cape, reflecting a broader trend of people relocating from Johannesburg to coastal regions. Despite this, Balwin remains committed to its core market in Gauteng, where they are executing ambitious projects like the Tshwane mega city. Balwin's foray into annuity services, including Balwin Fiber, aims to enhance client experience and offer additional value. The company's innovative approach extends to their new head office, featuring state-of-the-art digital advertising boards to bolster their corporate image and marketing efforts. Brookes anticipates significant returns from this strategic move, with the digital space contributing substantially to the overall annuity business. Additionally, Balwin is transitioning towards term-based funding, a strategic shift that promises more cost-effective financing options in the long run. This move reflects the company's long-term vision and commitment to financial sustainability. As Balwin continues to expand its footprint and explore new avenues for growth, the company remains focused on delivering exceptional value to shareholders and customers alike.