PRETORIA – Trellidor, the listed manufacturer of barrier security products, custom-made blinds and decorative security shutters, has established a dedicated team to focus on growing the group’s distribution in Africa.
Terry Dennison, the chief executive of Trellidor, said on Tuesday that this team was developing new opportunities in Africa, adding that the company had signed up new franchisees in the continent.
Trellidor’s products were distributed via a dedicated franchise network throughout South Africa, Africa and the UK.
Dennison said the strategy to sell certain products by Taylor Group, its blind and decorative shutters manufacturer, through the Trellidor distribution network would be accelerated in the company’s 2019 financial year.
Product diversification and geographic expansion strategies by Trellidor generated new product sales growth of 26 percent and international sales growth of 12 percent in the year to June.
Dennison said the group would also continue to seek synergistic acquisition opportunities.
He said the Trellidor business produced a solid financial performance in the year to June despite tough economic conditions during the reporting period, which negatively impacted consumer spending throughout South Africa and Africa, particularly in the middle income market.
Disposable income
However, Dennison said the Taylor Group was fully exposed to the decline in consumer disposable income.
Trellidor on Tuesday reported an 8.3 percent decline in headline earnings a share to 54.3c in the year to June from 59.2c in the previous year.
Group revenue rose by 2.6 percent to R539 million from R525.3m.
Operating profit before interest and tax dropped by 10 percent to R91.9m from R102.2m.
The group’s gross profit margin deteriorated to 45.6 percent from 47.7 percent.
Dennison attributed this predominantly to increased material costs, a change in sales mix and an under recovery of an above inflation increase in labour costs.
The dividend a share for the full year declined by 9 percent to 27.2c from 30.0c.
Dennison said the introduction of the new product set over the last few years and the synergistic acquisition of the Taylor Group had diversified and grown the group’s revenue stream.
He said these strategies had proven successful and would continue to drive strong growth in the group’s 2019 financial year.