Our opinion on the current state of SEB

Sebata (SEB) is an investment holding company with four divisions - software solutions, water technologies, ICT support services and consulting. Their software solutions division consists of Sebata which offers IT services to municipalities and public entities, Freshmark which provides IT solutions to fresh produce providers, and Rdata which offers an accounting package for the public sector. Water technologies consists of Utility Systems, electronic water control and pre-payment devices, and Amanzi Meters which supplies water meters to the residential market. ICT support services consists of Turrito Networks, which provides telecommunications and managed solutions to the SME and corporate market, and Dial-a-Nerd, which provides IT support to SMMEs and professionals. The Consulting division consists of Utility Management Services, which assists municipalities with meter reading and debt management, and Mubesko Africa, which consults to local government supplying draft policies and long-term financial planning. Its market, which consisted primarily of municipalities, is renowned for being badly managed and for failing to pay their debts. In its results for the year to 31st March 2023 the company reported revenue up 12,81% and headline loss of 14,48c per share compared with a loss of 443,68c in the previous year. The company said, "Trading conditions in which the group operates remain arduous. These conditions have only been exacerbated by the slowdown in the local economy and resultant slowdown in the spend of local authorities". In a trading statement for the six months to 30th September 2023 the company estimated that it would make a headline loss of between 9,39c and 10,44c compared with loss of 5,27c in the previous period. The value traded in the share is less than R10 000 per day on average - which makes it impractical even for a small investment. Clearly, it does have some prospects in the UK.