Calgro M3 Holdings Limited expects earnings per share and headline earnings per share will be between 14.18% and 17.34% higher for the year ended 28 February 2014 when compared to the previous comparative period. The lower than expected increase in EPS and HEPS is primarily a function of: the company not being able to transfer already constructed units to end-users on two projects; and certain once off construction losses incurred on the Jabulani project which amounted to ZAR 28 million for the 2014 financial year. The loss was as a result of the already reported electricity supply delays experienced during construction that led to an increase in holding costs, security, breakage, vandalism, construction escalation and additional costs in supplying power to units which were already occupied by third party clients.

These challenges have been resolved subsequent to the year end and completed units handed over to clients. This puts a damper on what should have been a year for the group.