Durban – Trellidor, manufacturer of custom-made barrier security products, yesterday slid into loss of R24.54-million in the year to end June, hurt by the closure of its manufacturing facilities for April due to the Covid-19 lockdown.
Last year the group reported a profit of R43.04million.
The share price closed 12.42% higher at R1.90 on the JSE yesterday.
Trellidor said its performance reflected the challenges of the economic conditions in South Africa, including the national lockdown, increasing unemployment, house price deflation, gross domestic product growth significantly below potential and correspondingly poor consumer, investor and business confidence.
The company’s revenue declined by 18.1% to R421.5million and at half-year, end of December 2019, group revenue was down by 4.2%
However, when the national lockdown, which came into effect on March 27, it resulted in both manufacturing facilities being closed for April with close to zero sales for the group.
Trellidor said manufacturing facilities resumed from early May after the country moved to level 4, but at a reduced capacity to comply with social distancing regulations, which remained in place for the balance of the financial period.
Sales remained subdued in May and June as the economy slowly started to rebuild following the hard lockdown of April.
“The lockdown resulted in revenue of R72m below our internal forecast for the fourth quarter,” said the group.