Trellidor final results June 2018
Revenue for the year increased to R539 million (2017: R525.4 million), gross profit decreased to R245.9 million (2017: R250.5 million), profit attributable to owners of the company fell to R58.8 million (2017: R64.3 million), while headline earnings per share dropped to 54.3 cents per share (2017: 59.2 cents per share).
The Board of Directors has declared a final gross dividend of 16.2 cents per share (2017: 19.5 cents per share). This brings the total gross dividend for the year ended 30 June 2018 to 27.2 cents (2017: 30.0 cents).
In addition, the Group purchased on the open market and cancelled 446 535 Group shares valued at R2.6 million.
The introduction of the new product set over the last few years and the synergistic acquisition of the Taylor Group have diversified and grown the Group's revenue stream. These strategies have proven to be successful as indicated above and will continue to drive strong growth in 2019. In this respect, the strategy to sell certain Taylor products through the Trellidor distribution network will be accelerated in 2019.
New franchisees have been signed in Africa and a dedicated team focused on growing the Group's distribution in Africa is developing new opportunities.
The Group has capacity to benefit from operational gearing generated by strategies focused on increasing sales volumes.
Operational improvements are targeted, particularly to increase gross margin. During the period capital expenditure of R6.0 million out of a planned total R12.0 million was made in an efficiency-enhancing project, which is expected to yield a payback period of two years. The capital expenditure includes factory expansion and new machinery. This project was implemented in August 2018 and will start producing full benefits from January 2019.
The Group will also continue to seek synergistic acquisition opportunities.