Construction World July 2024

PROPERTY

Balwin experiences toughest TRADING YEAR IN PAST DECADE JSE listed Balwin Properties, a developer that cares about environmentally responsible building practices and the delivery of high-quality apartments to its valued clients, recently released its annual financial results for the year ended 29 February 2024.

B alwin Chief Executive, Steve Brookes commented: “The past financial year was the toughest in our 28-year history as escalating interest rates, higher fuel and food prices as well as political uncertainty over the upcoming elections impacted on demand for residential housing. Our relentless focus on innovative design efficiencies and overhead reductions was further supported by a pleasing contribution from the annuity business, which resulted in a materially consistent gross profit margin of 28%.” Brookes noted that according to the latest Rode Report on

the South African Property Market, both FNB and Lightstone’s house-price indices recorded the lowest growth rate for the past four years in the last quarter of 2023. This is significant, as it includes the Covid lockdown periods. “The first quarter of 2024 showed a reversal of this trend, and although several macro-economic headwinds remain – especially in an election year – it appears that the sector has at least stabilised,” he added. Profit for the year of R217,4m was recorded (FY23: R437,4m) against revenue of R2,4b (FY23: R3,3b). Headline earning

12 CONSTRUCTION WORLD JULY 2024