Why the need to change?
Balwin results saw 277 sold properties not yet registered. This hurt profits, with HEPS down 36%. Had these 277 units been transferred, HEPS would have been down 13.8%, the decrease in part due to a rampup of expenses ahead of the large Waterfall development. What I find odd is that the company is considering how it recognises profits; currently it is on registration of the title deed and Balwin wants to change it to be on occupation or registration if there are guarantees in place for the purchase price. The question is, why the proposed change? The company says this will give it more control over revenue and I agree with that, but the net impact will be one-off in the first year it introduces the change, thereafter it is in the system and won’t have much of an effect. So why the change only a year after listing? Surely Balwin should have known about this issue and made the change prior to listing.