Trellidor Holdings’ share price fell sharply by 3.23% on the JSE after reporting a 154.9% decline in annual headline earnings per share that equated to a loss of 17.3 cents a share from a profit of 31.5 cents a share the previous year.
Revenue from continuing security-barrier operations for the 12 months to June 30 decreased by 20.3% to R292.7 million. Management said growth initiatives were under way as part of their plans to restore profitability.
CEO Damian Judge said the performance for the year was disappointing and that restoring profitability remained their immediate priority. The share price closed at R1.20 on Friday, compared with R2.01 a year earlier.
Earnings per share improved by 59.5% to a loss of 16.9 cents a share, from a loss of 41.7 cents a share reported previously.
Interest-bearing debt was reduced to R44.6m from R66.2m, contributing to a reduction in finance costs to R7.1m from R9.9m. The remaining debt comprised property-backed mortgage debt. No dividend was declared, given the financial performance. A dividend of 12 cents a share was declared the previous year.
Judge said however that Trellidor was entering the 2027 financial year in a stronger strategic and financial position.
“The business is simpler, more focused and better aligned to its core markets. The balance sheet has been strengthened, debt has been significantly reduced, the cost base has been reset, franchise transitions have largely been completed and selling capacity is being expanded,” Judge said in the results statement.
“Management’s priority is now to convert these actions into improved financial performance through disciplined execution, revenue growth, margin management, cost control, working-capital discipline and cash generation.”
“While challenges remain, the foundations for recovery have been laid,” he said.
Judge said trading at the start of the 2027 financial year had been positive. Although it was still early in the financial year, “this initial performance is encouraging and provides early support for the strategic actions taken during the 2026 financial year”.
Several growth strategies were aimed at improving revenue and profitability. A central component was the expansion of selling capacity, with dedicated sales resources introduced or strengthened in key markets.
Trellidor was also focused on expanding its geographic footprint, strengthening existing markets, restoring capacity in regions where franchise transitions had been required and selectively pursuing new opportunities where the Trellidor brand and product range could be leveraged. The product range would be enhanced in South Africa and the UK.
During the year, there was encouraging growth in KwaZulu-Natal, the Free State, the Western Cape and East Africa, along with positive non-project demand in the UK and stronger commercial and retail project demand in South Africa.
This was offset by non-recurring project work in the UK and weaker demand in Gauteng, the Eastern Cape and Botswana, reflecting difficult economic conditions and sector-specific issues.
Performance in Mpumalanga, Limpopo and Namibia was also affected by franchise transitions and the time required to rebuild local capacity. These transitions were largely complete as the 2027 financial year began.
A restructuring during 2026 reduced structural costs, improved accountability and created a leaner, more agile organisation, the directors said.
“Trellidor enters FY27 better positioned to rebuild revenue and restore profitability,” Judge said.
edward.west@nationalmg.co.za
THE NATIONAL