Infrastructure installation has begun on Bankenveld District City, says Calgro M3, who reported an 11.59% decrease in revenue in its residential property development segment for the six weeks ended 31st of August 2025 due to a shift in capital allocation to the project but maintaining a gross profit margin of 27.44% compared to 27.86% in the previous period.
The Group says that revenue from these installations will be recognised on finalisation of public sector agreements.
“As a result of infrastructure investments made in both the current and previous reporting periods, the Group has sufficient serviced opportunities (2 589) to support demand and sales activity for the upcoming financial year,” comments CEO Ben Pierre Malherbe.
As at February 2025 yearend, Calgro M3 held large stock on hand. “We are pleased to have reduced these by more than half in the six months through innovative targeted marketing campaigns and the sale of units to the property investor market,” he adds.
Its construction activity in the Western Cape increased during the period, having completed and sold out a further section of its Scottsdene development while in its existing pipeline in Gauteng, the final bulk and link installations in Fleurhof and Jabulani near completion. These, along with bulk and link investments which occurred over the preceding financial years, has resulted in 2 589 serviced opportunities available for development across the segment’s development pipeline.
Calgro M3 says that land acquisitions are being assessed in and around areas where it has installed bulk and link infrastructure, such as Fleurhof, which will assist in lowering future development costs, especially when public sector funding faces constraints.
Revenue in its memorial parks segment increased to R39.83 million (August 2024: R36.76 million) with gross profit having increased to R20.07 million (August 2024: R19.03 million). Completed lay-by sales recognised as revenue increased by 66.23% to R10.89 million (August 2024: R6.55 million).
“On-site infrastructure activities have commenced at Platinum City Memorial Park, where final regulatory approvals were obtained during the reporting period. Burials are expected to start in the last quarter of the 2026 financial year, providing the Group with more than 28 000 burial opportunities,” says Malherbe, adding that once this memorial park becomes fully operational, further investments will be directed toward replacing end-of-life parks over the short to medium term.
Malherbe says the Group’s shift in sales strategies to the lay-by market, adopted two years ago, supports predictability in cash flow, as evidenced by lay-by cash collections growing to approximately 28% of total cash collections – R51.64 million for the period (August 2024: R52.15 million).
During the period, 1,327,525 ordinary shares were repurchased at an average price of R5.00 per share, resulting in a reduction in share capital of R6.66 million.
In line with its dividend policy, its Board resolved not to declare an interim dividend.
