Our opinion on the current state of SEBATA(SEB)Sebata (SEB) is an investment holding company with four divisions: software solutions, water technologies, ICT support services, and consulting.
- **Software Solutions Division**: This division includes Sebata, which offers IT services to municipalities and public entities; Freshmark, providing IT solutions to fresh produce providers; and Rdata, an accounting package for the public sector.
- **Water Technologies Division**: This consists of Utility Systems, which provides electronic water control and pre-payment devices, and Amanzi Meters, which supplies water meters to the residential market.
- **ICT Support Services Division**: This division includes Turrito Networks, which offers telecommunications and managed solutions to SMEs and corporate markets, and Dial-a-Nerd, which provides IT support to SMMEs and professionals.
- **Consulting Division**: This division consists of Utility Management Services, which assists municipalities with meter reading and debt management, and Mubesko Africa, which consults to local governments, supplying draft policies and long-term financial planning.
Sebata primarily serves a market of municipalities, which is known for being poorly managed and for often failing to pay their debts. In its results for the year ending 31st March 2024, the company reported revenue of R33.1 million, up from R28.7 million in the previous period. Despite the increase in revenue, the company posted a headline loss of 101.62 cents per share, a significant increase from the 14.48 cents loss in the previous period.
The value traded in Sebata shares is around R20,000 per day on average, making it impractical for even small investments due to low liquidity. Despite this, the company does have some prospects in the UK, which may provide opportunities for growth in the future.
