Our opinion on the current state of TREMATON(TMT)Trematon (TMT) is an investment holding company with subsidiaries, joint ventures, and associate companies, primarily focused in the Western Cape. The company initially concentrated on property investments but has since diversified beyond this sector. One of its notable assets is Club Mykonos.
In its financial results for the six months ending 29th February 2024, Trematon reported a modest 2% increase in revenue, while headline earnings per share (HEPS) dropped by 68%. The company's net asset value (NAV) inched up by 1% to 339 cents per share. The company noted, "Total group intrinsic net asset value (INAV) reduced to R912.9 million from R991.8 million as of 31st August 2023, primarily due to the capital distribution paid to shareholders, reflected in the reduction in group cash."
In a trading statement for the full year ending 31st August 2024, the company estimated that HEPS would range between 0 cents and a loss of 0.2 cents, compared to a profit of 3.6 cents in the previous period.
Currently, Trematon's share is thinly traded, with only about R17,000 worth of shares changing hands daily, which makes it impractical for most private investors. Although the share is in a downward trend, there is potential for a turnaround if the company can successfully expand its investments in the education sector and improve its trading volume. The lifting of pandemic-related restrictions could also create new growth opportunities for the company.
