JSE-listed Balwin Properties' results for the six-month period to August 31 reflect the "unprecedented and evolving market conditions brought about by the coronavirus pandemic", the group said on October 12.
As a result of the outbreak and the response implemented by the South African government to best contain the Covid-19 virus, no construction activity took place from the enforcement of the national lockdown on March 26 until the easing of the restrictions to Alert Level 3 on June 1.
The startup of construction was conducted on a phased basis in line with national regulations and, accordingly, it is estimated that, in total, construction activity was adversely impacted for about three months.
For the period, revenue decreased 35% to R930-million, while profit for the year decreased 56% to R81-million, earnings a share decreased by 56% to 17c, headline earnings a share decreased by 56% to 17c but its net asset value a share increased by 9% to 631c.
Balwin continued its focus on capital allocation and cash on hand for the group improved to R427.7-million at interim period end, an increase of R153.8-million from the prior corresponding period.
The group noted that the deferral of the final dividend for the year ended February 29 contributed to the increased cash on hand at period end.
Balwin’s long-term debt-to-equity ratio at the end of the reporting period was 25% compared with 23% in the prior corresponding period, well within the board threshold of 50%.
The group measures long-term debt as all land and infrastructure debt. The board believes that this is an appropriate metric as development finance is specific to a development, short-term in nature and secured by existing pre-sales.
Balwin has declared an interim gross dividend of 19.6c an ordinary share.
This includes the dividend pertaining to the final results for the year ended February 29 which was previously deferred.