Balwin Properties CEO: Here’s what SA should do to lift economic growth

South African listed property group, Balwin, has released their latest financial results, showcasing the challenges they face in the current economic climate. The group's gross profit margin has dropped to 25% due to reduced profitability on elite model developments and increased marketing campaigns impacting the business. Despite the hurdles, the headline earnings per share saw a 5% increase, and an interim dividend of 11.7 cents per share was declared. Steve Brooks, the CEO of Balwin Properties, expressed his feelings about the results, acknowledging the tough economic environment and external factors such as Brexit and political decisions affecting the market. Brooks highlighted the efforts put into marketing and emphasized the focus on good design and quality to keep customers satisfied. He praised his team for their hard work and dedication, with award-winning architects and project managers ensuring the success of their projects. When asked about the company's exposure to the UK and the potential impact of Brexit, Brooks mentioned that 95% of their products are sourced locally with minimal imports from the UK. He stated that while there might be a marginal effect due to London's influence as a powerhouse capital, the primary focus remains on the South African market. Turning to the domestic economy, Brooks expressed his support for President Ramaphosa, mentioning their interactions and shared commitment to empowering small businesses. He emphasized the importance of infrastructure development to stimulate growth and create employment opportunities. Brooks highlighted the need for the government to invest in infrastructure projects, leveraging South African contractors' expertise and potentially seeking financial support from institutions like the World Bank. Despite facing challenges in the market and trading at a discount to NAV, Brooks remains optimistic about the company's future. He emphasized the focus on corporate governance, cash flow management, and delivering value to clients. Looking ahead, Balwin Properties plans to invest in their 'green brand' segment targeting the lower entry-level market and introduce innovative projects like the Munyaka development at Waterfall, set to revolutionize property landscapes in Johannesburg. The CEO's strategic approach aims to weather the storm of economic uncertainties and position the company for long-term success.