JSE-listed housing development company Calgro M3 on Tuesday advised shareholders that its earnings a share for the financial year ended February 2009, were expected to be between 55% and 65% lower than that reported for the previous corresponding period.

Earnings a share for the period were also expected to be between 73% and 83% lower than the forecasted earnings a share, as set out in the listing prospectus issued in early November 2007.

Calgro M3 stated that headline earnings a share for the 2009 financial year could fall by between 33% and 43%, on the performance a year earlier.

Headline earnings a share for the 2009 financial year would be between 60% and 70% lower than the forecast, set out in the listing prospectus issued in November 2007.

“Adverse market conditions which has resulted in a change of lending criteria by banks for end users, negatively impacting the building industry as well as a time delay on both the Pennyville and Fleurhof projects, have resulted in a substantial slowing in turnover and a tightening of margins in the affordable housing sector since the second quarter of 2008,” the company said in a trading statement.

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