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Unaudited Interim Results For The Six Months Ended 31 December 2015
TRELLIDOR HOLDINGS LIMITED
(Registration number 1970/015401/06)
20 Aberdare Drive, Phoenix Industrial Park, Durban
(PO Box 20173, Durban North, 4016)
Share code: TRL
ISIN: ZAE000209342
("Trellidor", "the company" or "the group")
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
HIGHLIGHTS
24%
Earnings per share
22%
Headline earnings per share
9,2 cents per share
(Maiden) Interim dividend declared
COMMENTARY
INTRODUCTION
Trellidor is the market leading manufacturer of custom made barrier security
products, distributed via a dedicated and skilled franchise network situated throughout South Africa. Franchisees
in Africa, the UK and Australia support, design and install the products internationally.
OPERATIONS OVERVIEW
The group is pleased to present its maiden set of interim results post listing on 28 October 2015.
For the first six months revenue grew 13% to R165 million despite difficult trading conditions. Revenue growth from
Africa franchisees is 23%. Gross profit margin has been maintained despite a significantly weaker rand during
the reporting period. Foreign exchange gains of R2,2 million (December 2014: R0,8 million) and profit on sale of
property, plant and equipment of R0,7 million have been recognised in other income during the period. Operating
expenses as a ratio to revenue have reduced from 29,7% (December 2014) to 28,3% notwithstanding listing
costs amounting to R1,7 million. Revenue growth, a stable gross margin along with tight overhead control have
grown headline earnings per share by 22%.
Net cash from operating activities of R14,2 million is in line with budget. Working capital investment
has increased due to higher inventory levels, predominantly due to the timing of receipts of imported goods, a
change of purchase strategy of certain components to benefit from lower prices, the holding of materials for newly
introduced products and the impact of a weaker currency. Seasonal reductions in payables further contributed
to working capital investment. It is anticipated that the current level of working capital will moderate and year on year
growth to be in line with sales growth. The board is confident that Trellidor's strong cash generating ability will
continue.
DIVIDEND
The Trellidor board of directors is pleased to announce a maiden interim gross dividend as a listed entity, of 9,2 cents per ordinary
share in respect of the six months ended 31 December 2015. The board anticipates distributing a cumulative
dividend equivalent to 50% of profit after tax for the full year.
PROSPECTS
Trellidor's strategy of growing recently introduced products is on track.
Growth of the distribution network in Africa and the search for possible acquisition targets are both progressing
well.
Development of a new "lifestyle" barrier security product is well advanced and on schedule to be launched into the
market before the end of the financial year. In this respect development and capital expenditure costs are within
budget.
Tough trading conditions are expected to continue and it is anticipated that pressure on input costs, due to rand
devaluation, will be mitigated by efficient inventory management, improved utilisation of materials and pricing
strategies. The group's exposure to foreign currency inputs is naturally hedged by approximately 60% through
foreign currency receipts. This is expected to continue.
T M Dennison
Chief executive officer
10 March 2016
CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared an interim gross dividend of 9,2 cents per ordinary share
for the six months ended 31 December 2015.
The dividend has been declared from income reserves. A dividend withholding tax of 15% will be applicable to
all shareholders who are not exempt. The interim net ordinary dividend is 7,82 cents per share for ordinary
shareholders who are not exempt from dividends tax.
The issued share capital at the declaration date is 108 340 118 ordinary shares. The income tax number of the
company is 9419378840.
The salient dates for the dividend will be as follows:
Last day of trade to receive a dividend Friday, 1 April 2016
Shares commence trading "ex" dividend Monday, 4 April 2016
Record date Friday, 8 April 2016
Payment date Monday, 11 April 2016
Share certificates may not be dematerialised or rematerialised between Monday, 4 April 2016 and Friday, 8 April
2016, both days inclusive.
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
Unaudited at Unaudited at Audited at
31 December 31 December 30 June
2015 2014 2015
Note R R R
Assets
Non-current assets
Property, plant and equipment 42 142 165 43 183 453 41 488 834
Goodwill 2 388 498 2 388 498 2 388 498
Intangible assets 643 430 716 565 675 894
Other financial assets 302 293 334 293 455 150
Deferred tax assets 2 872 580 663 732 2 702 024
48 348 966 47 286 542 47 710 400
Current assets
Inventories 28 360 079 20 131 619 21 369 847
Current tax receivable – – 5 473
Trade and other receivables 40 324 899 38 253 256 40 719 224
Other financial assets 821 430 593 104 1 080 672
Cash and cash equivalents 62 259 513 8 380 341 15 424 293
131 765 921 67 358 320 78 599 509
Total assets 180 114 887 114 644 862 126 309 909
Equity and liabilities
Equity
Share capital 4 45 759 072 92 92
Other reserves 138 191 (850 460) (201 798)
Retained earnings 88 161 057 70 622 917 69 762 595
Equity attributable to owners of the company 134 058 320 69 772 549 69 560 889
Non-controlling interests (1 063 384) (1 388 097) (1 294 401)
Total equity 132 994 936 68 384 452 68 266 488
Liabilities
Non-current liabilities
Other financial liabilities 17 458 948 20 618 808 18 776 249
Provisions 1 216 563 2 819 237 5 644 237
18 675 511 23 438 045 24 420 486
Current liabilities
Trade and other payables 22 540 993 18 889 704 27 708 089
Other financial liabilities 3 696 556 3 627 854 3 676 557
Current tax payables 1 966 668 133 656 2 013 567
Provisions 240 223 171 151 224 722
28 444 440 22 822 365 33 622 935
Total liabilities 47 119 951 46 260 410 58 043 421
Total equity and liabilities 180 114 887 114 644 862 126 309 909
CONDENSED CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Note R R R
Revenue 165 269 129 146 881 875 293 775 739
Cost of sales (81 753 325) (72 517 076) (144 916 961)
Gross profit 83 515 804 74 364 799 148 858 778
Other income 4 049 029 1 860 412 2 863 787
Operating expenses (46 716 910) (43 629 763) (85 336 767)
Operating profit 40 847 923 32 595 448 66 385 798
Investment revenue 778 669 117 747 320 414
Finance costs (1 333 177) (1 461 329) (3 099 419)
Profit before tax 40 293 415 31 251 866 63 606 793
Taxation 3 (11 636 361) (8 948 622) (18 097 072)
Profit for the period 28 657 054 22 303 244 45 509 721
Other comprehensive income:
Items that will not be reclassified to profit or loss
Exchange differences on translating foreign operations (183 834) (98 076) 81 235
Unwinding of cash flow hedge 496 248 496 248 992 496
Income tax related to items that may be reclassified – – –
Other comprehensive income for the period,
net of taxation 312 414 398 172 1 073 731
Total comprehensive income for the period 28 969 468 22 701 416 46 583 452
Profit attributable to:
Owners of the company 28 398 462 22 279 438 45 419 116
Non-controlling interests 258 592 23 806 90 605
28 657 054 22 303 244 45 509 721
Total comprehensive income attributable to:
Owners of the company 28 738 451 22 692 321 46 480 660
Non-controlling interests 231 017 9 095 102 792
28 969 468 22 701 416 46 583 452
Earnings per share for profit for the period attributable
to the owners of the company during the period
Basic and diluted earnings per share (cents) 5 27,6 22,3 45,4
Headline earnings per share (cents) 5 27,1 22,3 45,4
CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Attributable
to owners Non-
Share Other Retained of the controlling Total
capital reserves earnings company interests equity
R R R R R R
Balance at 1 July 2014 92 (1 263 343) 67 843 479 66 580 228 (1 397 192) 65 183 036
Profit for the period – – 22 279 438 22 279 438 23 806 22 303 244
Other comprehensive income – 412 883 – 412 883 (14 711) 398 172
Total comprehensive income
for the period – 412 883 22 279 438 22 692 321 9 095 22 701 416
Dividends – (19 500 000) (19 500 000) – (19 500 000)
Total distributions – (19 500 000) (19 500 000) – (19 500 000)
Balance at 31 December 2014 92 (850 460) 70 622 917 69 772 549 (1 388 097) 68 384 452
Profit for the period – – 23 139 678 23 139 678 66 799 23 206 477
Other comprehensive income – 648 662 – 648 662 26 897 675 559
Total comprehensive income
for the period – 648 662 23 139 678 23 788 340 93 696 23 882 036
Dividends – – (24 000 000) (24 000 000) – (24 000 000)
Total distributions – – (24 000 000) (24 000 000) – (24 000 000)
Balance at 30 June 2015 92 (201 798) 69 762 595 69 560 889 (1 294 401) 68 266 488
Issue of new shares 45 758 980 – – 45 758 980 – 45 758 980
Profit for the period – – 28 398 462 28 398 462 258 592 28 657 054
Other comprehensive income – 339 989 – 339 989 (27 575) 312 414
Total comprehensive income
for the period – 339 989 28 398 462 28 738 451 231 017 28 969 468
Dividends – – (10 000 000) (10 000 000) – (10 000 000)
Total distributions – – (10 000 000) (10 000 000) – (10 000 000)
Balance at 31 December 2015 45 759 072 138 191 88 161 057 134 058 320 (1 063 384) 132 994 936
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
R R R
Cash flows from operating activities
Cash receipts from customers 169 712 483 153 846 235 299 278 974
Cash paid to suppliers and employees (143 109 291) (120 755 262) (220 888 434)
Cash generated from operations 26 603 192 33 090 973 78 390 540
Interest revenue 778 669 117 747 320 414
Finance costs (1 333 177) (1 461 329) (3 099 419)
Tax paid (11 848 343) (12 142 755) (21 455 059)
Net cash from operating activities 14 200 341 19 604 636 54 156 476
Cash flows from investing activities
Purchase of property, plant and equipment (3 909 302) (1 770 807) (3 218 573)
Proceeds from sale of property, plant and equipment 797 299 23 244 30 494
Purchase of intangible assets (21 767) – (16 063)
Proceeds from/(advance of) other financial assets 412 099 167 908 (440 518)
Net cash from/(used in) investing activities (2 721 671) (1 579 655) (3 644 660)
Cash flows from financing activities
Repayment of other financial liabilities (549 213) (1 359 440) (2 835 389)
Dividends paid (10 000 000) (19 500 000) (43 500 000)
Proceeds from the issue of shares to shareholders 45 758 980 – –
Net cash from/(used in) financing activities 35 209 767 (20 859 440) (46 335 389)
Net increase/(decrease) in cash and cash equivalents 46 688 437 (2 834 459) 4 176 427
Cash and cash equivalents at the beginning of the period 15 424 293 11 191 778 11 191 778
Exchange gains on cash and cash equivalents 146 783 23 022 56 088
Cash and cash equivalents at the end of the period 62 259 513 8 380 341 15 424 293
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
1. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial information for the six months ended
31 December 2015, have been prepared and presented in accordance with the framework concepts and the
measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA
Financial Reporting Guideline as issued by the Accounting Practices committee and Financial Reporting
Pronouncements as issued by the Financial Reporting Standards Council, the Listings Requirements of the
JSE Limited, the information as required by IAS 34 – Interim Financial Reporting and the Companies Act
No 71 of 2008, under the supervision of the Chief Financial Officer, Mr CG Cunningham CA(SA). The
accounting policies applied in preparation of the condensed consolidated financial information are consistent
with those applied in the financial statements for the year ended 30 June 2015.
These results have not been reviewed or reported on by the Group's auditors. The results were approved by
the board of directors on 10 March 2016.
2. SEGMENTAL INFORMATION
Operating segments are components of entities from which revenue may be earned and expenses may be
incurred, whose operating results are regularly reviewed by the entity's chief operating decision maker to
make decisions about resource allocations and for which discrete financial information is available.
The Group operates as a single operating segment, the manufacturing of barrier security, which the chief
executive officer assesses for resource allocation.
3. TAXATION
Income tax expense is recognised based on management's best estimate of the weighted average annual
income tax rate, expected for the full financial year, applied to the pre-tax income of the interim period. The
Group's consolidated effective tax rate for the six months ended 31 December 2015, was 28,9%
(31 December 2014: 28,6%; 30 June 2015: 28,5%).
4. CAPITAL AND RESERVES
Issues of ordinary shares
During the six months, the company subdivided each issued ordinary share into 544 shares. On 28 October
2015, the company listed all of its issued ordinary shares on the JSE main board. In conjunction with the
listing, the company undertook a private placement by way of an offer to invited investors to acquire and/or
subscribe for private placement shares in the company. The company issued 8 333 334 new ordinary shares
through the private placement.
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
R R R
5. EARNINGS PER SHARE
Profit attributable to ordinary shareholders 28 398 462 22 279 438 45 419 116
Adjusted for:
(Profit)/loss on disposal of property, plant and equipment (475 097) 23 817 23 819
Gross amount (659 856) 33 082 33 082
Tax effect 184 760 (9 263) (9 263)
Headline earnings 27 923 365 22 303 257 45 442 935
Number Number Number
Number of shares in issue 108 340 118 183 836 183 836
Weighted average number of ordinary shares
in issue during the period 102 950 625 100 006 784 100 006 784
Diluted weighted average number of shares 102 950 625 100 006 784 100 006 784
Basic and diluted earnings per share (cents) 27,6 22,3 45,4
Headline earnings per share (cents) 27,1 22,3 45,4
6. EVENTS AFTER BALANCE SHEET DATE
There have been no material post balance sheet events.
7. CHANGES TO THE BOARD
The changes to the board of directors and the appointment of a new company secretary, as noted in the
pre-listing statement, have taken place during the period under review. The following changes occurred:
– Mr CG Cunningham was appointed to the Board with effect from 27 August 2015;
– Mr P Rawson resigned from the Board with effect from 27 August 2015;
– Mr PB Patmore has been appointed to the Board with effect from 28 October 2015;
– Mr CG Cunningham resigned as company secretary with effect from 28 October 2015; and
– Ms P Nel was appointed as company secretary with effect from 28 October 2015.
CORPORATE INFORMATION
DIRECTORS
MC Olivier (Chairman)*#
TM Dennison (Chief Executive Officer)
CG Cunningham (Chief Financial Officer)
RB Patmore*#
JB Winship*#
* Non-executive
# Independent
COMPANY SECRETARY
P Nel
(BComm FCIS)
71 Cotswold Drive
Westville 3629
REGISTERED OFFICE
20 Aberdare Drive
Phoenix Industrial Park
Durban, 4001
(PO Box 20173, Durban North, 4016)
DATE OF INCORPORATION
23 November 1970
PLACE OF INCORPORATION
South Africa
WEBSITE
www.trellidor.co.za
AUDITORS AND INDEPENDENT REPORTING ACCOUNTANTS
Mazars
Mazars House
197 Peter Mokaba Road
Morningside
Durban, 4001
(PO Box 70584, Overport, 4067)
SPONSOR
PSG Capital (Pty) Ltd
(Registration Number 2006/015817/07)
1st Floor, Ou Kollege
35 Kerk Street
Stellenbosch, 7600
(PO Box 7403, Stellenbosch, 7599)
and
1st Floor, Building 8
Inanda Greens Business Park
54 Wierda Road West
Wierda Valley
Sandton, 2196
(PO Box 650957, Benmore, 2010)
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
(Registration Number 2004/003647/07)
Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
11 March 2016
Date: 11/03/2016 08:39:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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