The company also saw earnings per share improving by 39.19 per cent to 55.90 cents from 40 cents in 2013.
The group’s unaudited interim results for the six months ended 31 august 2014 reported a 39 per cent rise on profit after tax to 71 million rand from 51 million rand in 2013.
(READ MORE: Calgro revenue up 8 per cent)
The company on its SENS announcement said its results were positive despite tough trading conditions.
“Results of the Group’s operations showed improvement in the period under review, despite the tough trading environment in the development and construction sectors. During this period the industry was affected by the metal workers strike that caused unprecedented delays,” said Calgro.
The company saw a decrease in revenue to 412 million from 435 million rand in the same comparable period last year.
“Although revenue at Group level decreased to 412 million rand, gross profit margins increased to 20.07 per cent from 14 per cent in 2013, as a result of the focus on top structure construction on stands previously serviced.”
The group’s profits from Joint Ventures increased to 29.9 million rand from 27 million rand in 2013.
[DATA CGR:Calgro M3 Holdings Limited]said the company’s cash position remains strong at 166.7 million rand from 62 million rand in February 2014.
“Working capital continues to be closely monitored by focusing on the timeous receipt of debtors and the transfer of properties to clients, thereby ensuring that money becomes due and payable.”
The group is positive about future growth prospects despite industry headwinds.
(READ MORE: Calgro M3 expands its African footprint)
“The Group is well positioned to capitalise on numerous opportunities and will aim to continuously grow the secured pipeline in the next six months under review,” said the company.
“During the next six months, margins are expected to come under pressure as exposure to the installation of infrastructure increases primarily as a result of the planned installation of infrastructure on the Belhar, South Hills, Jabulani Hostels and Vista Park projects.”
The Group experienced a renewed commitment from Government to increase investment in
infrastructure, allowing the Group to deliver on infrastructure for integrated developments.