Our opinion on the current state of TLM

2023年9月22日

Telemasters (TLM) is a company which supplies voice, data and cloud communications using fixed line, fixed cellular, fixed data, and PBX services. It has three divisions - voice, cloud PBX and internet. The business consists of (1) Catalytic Connections (Pty) Limited is a diversified ICT managed solutions provider to medium and small enterprises. (2) Contineo Virtual Communications (Pty) Limited operates a Next Generation Unified Communications (“UC”) platform based on Cisco Broadsoft technology. (3) PerfectWorx Consulting (Pty) Limited is a niche network systems integrator. (4) Ultra Data Centre (Pty) Limited built and operates a data centre located outside of Pretoria. In its results for the six months to 31st December 2022 the company reported revenue down 5,1% and a headline loss of 1,02c per share compared with a loss of 1,68c in the previous period. The company said, "Sales in two of the four markets that the Group serves were down on the previous period in line with the rest of the market. The total minutes of corporate airtime used fell as customer staff usage levels have not recovered". In a trading statement for year to 30th June 2023 the company estaimated that headline earnings per share (HEPS) would be 0,81c compared with a loss of 3,73c in the previous year. The share is very thinly traded because most of the share are held by a single shareholder - the Maison D-Obsession trust. This makes it impractical for private investors.