Our opinion on the current state of RTL

Trellidor (TRL) is a manufacturer of barrier security products, blinds and security shutters since 1976. The company is divided into the Trellidor business (security barriers) and the Taylor business (security and decorative blinds). Taylor also imports and distributes cornicing and skirting. The company has 70 franchise outlets in South Africa and a very strong brand name. The company has representation in 24 countries, 17 of which are in Africa. Obviously, this company is linked to the construction and home improvements industry and so it is at the mercy of the state of the economy. It is well managed and has a strong balance sheet. It should benefit directly from any improvement in the economy and has benefited from the work-from-home shift in the economy as well as the low level of interest rates. The company has been engaging in share buy-backs which support the current share price. In its results for the year to 30th June 2023 the company reported revenue down 2,1% and headline earnings per share (HEPS) 4,2c compared with 0,4c in the previous year. The company said, "The Group’s gross profit margin of 38.5% was in line with the previous financial year (F22: 38.4%). However, maintaining the Group’s gross profit margin has not compensated for lower sales, resulting in a R3.9 million reduction in Group profitability compared to the prior year". Trellidor is a relatively thinly traded share which increases risk. Obviously, security remains a priority for South Africans.