File photo: Nadine Hutton.

Johannesburg - Trellidor, the barrier security manufacturer that listed on the JSE in October, is still searching for possible acquisition targets.

Terry Dennison, the chief executive of Trellidor, said on Friday that growth of the company’s distribution network in Africa and the search for possible acquisition targets were both progressing well.

It said prior to its listing that it was eyeing acquisition targets worth up to R100 million and the funds raised through the listing were to be spent on the launch of a new product and acquisitions.

New product

Dennison said the development of a new “lifestyle” barrier-security product was well-advanced and on schedule to be launched into the market before the end of the company’s financial year in June.

Trellidor has a network of 72 franchises in South Africa and is represented in 23 countries worldwide including distributors in 17 African countries. The company also operates an assembly plant in Ghana.

Franchises in Africa, the UK and Australia support, design and install the company’s products internationally.

Trellidor on Friday reported a 12.5 percent growth in revenue to R165.3 million in the six months to December from R146.9m in the previous corresponding period.

Gross profit rose by 12.3 percent to R83.5m from R74.4m.

Dennison said the gross profit margin had been maintained despite a significantly weaker rand during the reporting period.

Foreign exchange gains rose to R2.2m from R0.8m and profit on sale of property, plant and equipment of R0.7m were recognised in other income during the period. Operating profit improved by 25.3 percent to R40.85m from R32.6m. Headline earnings a share rose by 21.5 percent to 27.1c from 22.3c.

A maiden interim dividend of 9.2c a share was declared.

Dennison said the tough trading conditions were expected to continue and it was anticipated that pressure on input costs, because of the devaluation of the rand, would be mitigated by efficient inventory management.

He said the group’s exposure to foreign currency inputs was naturally hedged by about 60 percent through foreign currency receipts, which were expected to continue. Shares in Trellidor dropped 0.93 percent on Friday to close at R5.35.