AltX-listed Calgro M3 Holdings announced on Friday that its headline earnings per share for the six months ended August 2010 improved to 3.61 cents against the loss per share of 2.93 cents a year ago.

Operating profit came in R6.025 million from R24.350 million previously.

Profit attributable to company owners was R4.587 million vs R21.602 million a year earlier.

The property developer said an upturn in sales across the board,especially in the affordable housing segment, and significant construction progress at Fleurhof contributed to a stronger bottom line.

CEO Ben Pierre Malherbe says although the improvement is marginal in terms of numbers, it is significant in light of the extra cash invested in two projects during the period and attributes the achievement to "management's strict control of overheads".

Calgro M3 financial director Wikus Lategan adds that as a result of management's diligence, the debt-to-equity ratio improved to 1.3:1 from 1.6:1 at the previous year-end (and from 3.1:1 at February 2009), "with current liabilities substantially down to R66.0 million from R82.7 million at February 2010 (and R189.3 million at February 2009)".

Looking ahead, Malherbe says the steadily growing affordable housing segment will continue to boost growth in the short to medium term, supported by the improving ability of homebuyers to secure mortgages.

He further remains adamant that Integrated Housing offers major opportunity.

"The ongoing non-delivery of BNG housing is exacerbating the frightening backlog, with pressure for delivery mounting in the run-up to the 2011 local elections.

"Calgro M3 has proven itself an efficient, preferred partner for the public sector, which bodes well for future growth."

In the medium term the group will continue to localise its efforts in Gauteng although Malherbe says if the right opportunities arose, geographical expansion would be a consideration.

Source: I-Net Bridge