Calgro M3 half-year headline loss widens to 26.29c

Calgro M3, a leading property development company, recently reported a headline loss per share widening to 26.29 cents in August, a concerning figure compared to a 3.24 cents per share loss in the previous comparable period. Despite these challenging financial results, Calgro M3's CEO, Wikus Lategan, remains confident in the company's strategic financial position post the COVID-19 lockdown disruption. Lategan emphasized that the company is well-equipped to navigate the current market uncertainties and capitalize on future opportunities. One of the key themes highlighted by Lategan during the CNBC Africa interview was the resilience of Calgro M3 amidst the economic downturn caused by the pandemic. He pointed out that while their competitor faced significant challenges over the last three years, Calgro M3 managed to maintain a strong financial position with ample cash reserves and ongoing projects. Lategan reassured shareholders that the group is primed for growth post-COVID-19. Key Points: 1. Memorial Park Operations Boosting Revenue: Lategan shared that the memorial park operations witnessed a revenue increase of 75% during the six months under review, a remarkable achievement considering the impact of the pandemic. The memorial park business not only contributed to revenue growth but also generated substantial cash flow, reinforcing the company's financial stability. 2. Strategic Cash Management: With a cash balance of 246 million rand, Lategan outlined the company's prudent approach to cash management. He explained that Calgro M3's current focus is on utilizing the cash reserves to support ongoing development projects, safeguard against potential future challenges, and drive the company towards profitability in the next 12 to 18 months. Lategan emphasized the importance of focusing on cash flow generation to steer the business in the right direction. 3. Dividend Policy and Market Perception: Unlike many companies that have suspended dividend payments amid the economic uncertainty, Lategan expressed that Calgro M3 sees itself as a capital appreciation stock rather than a dividend-paying entity. He emphasized the company's goal of delivering consistent profits in the coming years, which would ultimately translate into share price appreciation. Lategan highlighted the substantial cash reserves held by the company, which he believes will play a pivotal role in navigating the current market challenges. In closing, Lategan addressed the issue of dividend payments, stating that while some investors may question the lack of dividends in recent years, the company's focus remains on steering Calgro M3 towards sustained profitability and value creation for shareholders. He reiterated his confidence in the company's ability to leverage its financial strength to weather the current market conditions and emerge stronger in the long run.