Prominent South African company takes a hit with profit down 98%

Trellidor is hoping to stage a comeback, implementing a three-phase turnaround plan to improve its struggling operations and finances.

So far, this process has already seen Trellidor sell two major business units, with the next phase seeking to optimise costs.

On Tuesday, 10 March, Trellidor released its results for the six months through December 2025, the first half of its 2026 financial year.

These results revealed a lacklustre performance, with revenue down 21.34% to R161.12 million.

The company attributed this to the completion of a non-recurring project it had in the UK in February 2025. This created a higher base in the prior year.

Trellidor’s basic earnings per share fell by over 90% to 0.6 cents per share, while its profit plunged by 98% to R539,000.

However, the group said its turnaround is taking shape, with the first phase, aimed at reallocating capital to reduce gearing and streamlining its portfolio, completed.

This first phase saw Trellidor sell its Taylor and NMC businesses in July 2025 for up to R90 million.

This allowed the company to reduce its term debt for continuing operations by R19.8 million, contributing to a 48.1% reduction in finance costs to R4.1 million.

Now, Trellidor is on to the second phase, which deals with cost optimisation and addressing fixed cost savings of R13.9 million.

“These will gain momentum through the second half of the financial year ending 30 June 2026, with the full benefit anticipated to be realised during the next financial year ending 30 June 2027,” the company said.

Trellidor said the last phase will deal with the need to introduce a shareholder of reference to support the future development of the business.

“Addressing the erosion in shareholder value is the foremost strategic objective for the group,” Trellidor said.

“Regardless of a challenging macro environment, initiatives to better exploit opportunities to recoup and grow market share domestically, supported by revenue-generating strategies in the UK, remain in place, and steadfast execution should yield positive results for shareholders.”

On the back of these results, Trellidor opted not to declare an interim dividend for the first half of its 2026 financial year.