Our opinion on the current state of TLM

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 year to 30th June 2023 the company reported revenue down 1,3% and headline earnings per share (HEPS) of 0,81c compared with a loss of 3,73c in the previous year. The company said, "Operating profit was restored from the prior year operating loss, with an improvement of R2.8 million year on year. • The DataCentre business is now growing and producing sustainable profits. • EBITDA continues to grow improving to R8 million from R7 million in the prior year. • The dividend policy has been maintained with dividends of 0.85 cents per share declared during the year". The share is very thinly traded with less than R2000 worth of shares changing hands each day because most of the shares are held by a single shareholder - the Maison D-Obsession trust. This makes it impractical for private investors.