Three property registration delays have impacted on Balwin Properties’ otherwise glowing half-year results, according to the residential property developer, which saw a 36% decline in headline earnings a share and earnings a share to 37c respectively in the six months to August 31.
The group’s operating profit was also down 26% to R235-million. However, CEO Stephen Brookesexplained that, had all outstanding units registered prior to the group’s results being finalised, profit after tax would have been R237-million.
He explained that, as Balwin’s revenue has traditionally been recognised on the transfer and registration of properties, it prematurely impacted on the company’s bottom line.
“However, with our change in accounting, this year’s results are better than last year’s and it’s really looking good for our year-end for 2017,” he said.
Meanwhile, despite Balwin operating under severe pressure in the challenged economy, with political undercurrents, an ongoing drought and the likelihood of a sovereign downgrade impacting negatively on the rand, Balwin saw a sustained level of demand and rate of bond approvals during the period under review.
As part of its policy of distributing 30% of its profits to shareholders, Balwin declared a gross dividend of 11c a share.
Meanwhile, Balwin has partnered with international company Crystal Lagoons to establish five man-made lagoons at three of the company’s property developments in South Africa.
These newly developed, patented lagoons, which will feature lagoon frontage, a beach and technically advanced cleaningsystems, aim to revolutionise estate living, offering Balwin’s home owners an idyllic beach lifestyle at home.
“We will be the first to market Crystal Lagoons in sub-Saharan Africa, which will revolutionise our sales,” noted Brookes.
