Trellidor aims to continue buying back ‘undervalued shares’
The fixed-security specialist cut its final dividend 30.8% to 11.1c for the year to end-June, citing a constrained domestic environment
Fixed-security specialist Trellidor, whose share has fallen 8.7% so far in 2019, said it will consider further share buybacks even as it battles with a challenging operating environment.
The group reported a 25% fall in operating profit for the year to end-June on Monday, cutting its final dividend 30.8% to 11.1c per share. This brought the group’s total dividend to 20.2c, down 25.7% year on year.
“The group’s performance reflects the challenges of the economic conditions in SA during the period including increasing levels of unemployment, house price deflation, GDP growth significantly below potential and correspondingly poor consumer, investor and business confidence,” the group’s statement reads.
Trellidor, which has been designing and manufacturing security barriers for doors and windows since 1976, said on Monday it considers its shares undervalued, and will continue its share repurchasing programme.
From September 2018 to June 2019, the group repurchased shares representing 1.7% of its issued share capital, with the R9m spent funded from the company’s cash resources.
Trellidor’s share price was unchanged at R4.20 on Monday morning.