Trellidor acquires lagging franchises

DURBAN – Trellidor Holdings, a leading manufacturer of barrier security products, wants to continue deploying capital to acquire under-performing franchises going forward as it battles with adverse economic conditions which had a negative impact on its results.

The group felt the impact of a constrained economic environment by reporting a 4 percent decline in revenue to R275 million while headline earnings per share declined 13.9percent to 25.6cents a share in the six months to end December. However, the group said the Durbanville franchise, which was purchased last year, managed to grow its sales volumes 23.6percent during the period.

“Management is seeking to replicate this success in other areas,” Trellidor said. “Accordingly, three franchise areas have been purchased in the eThekwini metropolitan area and will be consolidated into a single branch during the second half of 2020. The execution of this strategy will have a limited impact on the earnings in the second half of 2020. The full economic benefit will come through in 2021.”

The group said that the strategic development of this branch would include the centralisation of administration functions and integration of the complimentary Taylor product set and brand in the region.

The group operates two segments, Trellidor and Taylor businesses, and said product innovation remains a key strategy for both Trellidor and Taylor.