Thursday, 20 April 2017
('Trifast', TR, or the 'Group')
Trading Update and Notice of Annual Results
"Trading performance across the business delivers another record breaking financial year and results ahead of Board expectations"
Trifast plc (Main market: TRI), a leading international specialist in the engineering, manufacturing and distribution of high quality industrial fastenings to major global assembly industries, is pleased to provide the following unaudited trading update, ahead of the publication of the Group's final results for the financial year ended 31 March 2017 which will be released on Tuesday, 13 June 2017.
Ø Solid organic growth across all our regions
Ø Growth strategy continues to deliver across key sectors of automotive, domestic appliances, electronics and distributors
Ø Strong cash generation - net debt at year end lower than anticipated
Ø Trifast enters the new financial year in robust shape
Ø Encouraging pipeline and opportunities across key sectors and locations
Ø Board remains confident in the TR strategy, prospects and future performance
Mark Belton, CEO Trifast commented:
"We remain confident in the Group's strategy; our underlying business is delivering against our core KPIs and is continuing to perform well. In addition, our aptitude for 'continuous improvement' initiatives, underpinned by skilled and proven teams across our international business, gives us confidence and belief that the Trifast business model can continue to deliver on the opportunities for both organic and acquisitive growth and thereby sustain its successful track record."
On a constant currency basis (CER), the Board is once again pleased to report that the financial year ended 31 March 2017 finished strongly, with the Group's main geographies all contributing to trading results ahead of management expectations; this reflects compelling underlying organic growth from the key sectors we operate within. In addition, we remain confident in the Group's strategy; our underlying business is delivering against our core KPIs and continues to perform well.
Within Asia, the TR business continued its return to growth building on the profitable return achieved in the HY1 period and benefiting from the recovery in demand both in the domestic and export markets from within our key sectors of industrials, electronics and automotive. Within the UK, we have experienced good growth coming through from both our OEM and distributor export businesses. Our USA operations, albeit from a small base, have produced double digit growth with trading results in line with management expectations. Within Mainland Europe, the business overall has once again performed well delivering year-on-year growth. Within our German business (Kuhlmann) we have benefited from both organic and cross-referral opportunities from around the TR network.
The Group's capital investment programme during the year totalled c.£3m; this has provided additional capacity in Asia and Europe and consequently will enable the Group to capture further market opportunities and capitalise on our capabilities and operating efficiencies across the network. Our aptitude for 'continuous improvement' initiatives, underpinned by skilled and proven management teams, gives us ongoing belief that Trifast can sustain its successful track record for long term growth.
As an international business, over 70% of our revenue is generated outside of the UK. During the financial year ended 31 March 2017, the Group's overall margin has held up well despite the continued weakness of Sterling. At 30 September 2016, we reported that Trifast had experienced translational FX tailwinds of approximately £1.0m at the underlying PBT level; during HY2 the sustained weakness in Sterling has had an additional positive translation impact on the Group's underlying PBT of c.£1.4m.
The Company continues to have a solid balance sheet and remains highly cash generative which, with continual tight working capital controls, has resulted in a lower net debt position than expected. We remain committed to a progressive dividend policy and the Board expect to declare an increase in the dividend payable for the financial year to 31 March 2017 in line with our previously stated intentions.
Summary and outlook
The Group has delivered a very encouraging and excellent performance that will deliver trading results for the financial year ended 31 March 2017 ahead of Board forecasts.
Looking ahead, the Board remains confident that both our experienced business teams and our wide geographical coverage will give us the ongoing flexibility and foresight to meet both the many opportunities that lie ahead of us as well as dealing with the macroeconomic and political challenges that could lie in front of us. As reported previously, we are already starting to see some purchase price challenges in our UK business from the ongoing weakness in Sterling and we remain mindful these pressures may increase over time if that weakness persists. Nonetheless, as we enter this new financial year, we remain confident in our prospects, underlying growth performance and capital investment objectives.
Notice of Annual results
The Directors look forward to presenting the Group's results for the year ended 31 March 2017 and providing shareholders with a further update on trading and strategy on 13 June 2017.
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
About us: Trifast is a leading international specialist in the engineering, manufacturing and distribution of high quality industrial fastenings to major global assembly industries. Key sectors are automotive, domestic appliances, electronics and distributors.
The Group employs c.1,200 staff across 27 global locations across the UK, Europe, Asia and the USA.
For more information, please visit
Group website: www.trifast.com
Enquiries please contact:
Malcolm Diamond MBE, Chairman
Mark Belton, Chief Executive Officer
Clare Foster, Chief Financial Officer
Office: 44 (0) 1825 747630
Peel Hunt LLP
Stockbroker & financial adviser
Justin Jones or Matthew Brooke-Hitching
Tel: 44 (0) 20 7418 8900
IR & media relations
Tel : 44 (0)7785 703523