Trifast Plc (LSE: Main Market Symbol TRI) Releases Half-year Results

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Nov 08, 2016, 03:24 ET

LONDON, November 8, 2016 /PRNewswire/ --

"Yet Another Record Breaking Six Months, With Strong Underlying Trading Growth Driving our Underlying PBT up by 8.0% at CER (20.3% at AER)," Malcolm Diamond MBE, Executive Chairman

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.

   
    KEY FINANCIALS

    FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016
                                                        Change

                                                        HY2017

                                                             v

    Continuing operations (Actual Exchange Rate, AER)   HY2016   HY2017   HY2016    FY2016
    Group revenue                                       +14.9% GBP89.7m GBP78.1m GBP161.4m
    Gross profit %                                     +230bps    31.6%    29.3%     29.7%
    Underlying operating profit*                        +18.7% GBP10.3m  GBP8.6m  GBP16.8m
    Operating profit                                    +17.3%  GBP8.8m  GBP7.5m  GBP13.9m
    Underlying profit before tax*                       +20.3%  GBP9.9m  GBP8.3m  GBP16.0m
    Profit before tax                                   +19.1%  GBP8.5m  GBP7.1m  GBP13.1m
    Underlying diluted earnings per share*              +24.2%    6.27p    5.05p     9.99p
    Diluted earnings per share                          +24.8%    5.33p    4.27p     8.50p
    Basic earnings per share                            +24.7%    5.50p    4.41p     8.78p
    Interim/total dividend^                             +25.0%    1.00p    0.80p     2.80p
    Net debt                                          -GBP2.1m GBP14.2m GBP16.3m  GBP16.0m
    Return on capital employed (ROCE)*                  -70bps    18.6%    19.3%     18.5%

* Before separately disclosed items (see note 2).

^ Change is in interim dividend only.

OPERATIONAL HIGHLIGHTS

Total revenue increase of 8.1% at Constant Exchange Rate (CER), 14.9% at AER
A growth strategy that continues to deliver - revenue from multinational OEMs grew by 8.9% at CER
FX tailwinds bring additional £1.0m to underlying profit before tax
Underlying diluted earnings per share up by 10.3% at CER, 24.2% at AER
Growth in profitability drives interim dividend increase
£0.9m capital investment programme in our manufacturing capabilities, which is expected to increase in the second half
Ongoing investment for growth in our sales teams and operations around the world
TR Fastenings Espana - an exciting new TR location near Barcelona giving the Group access to a key growth market

"HY2017 has seen another six months of strong trading, putting us firmly on track with our expectations to achieve another record breaking financial year.

There are, of course, some macroeconomic factors we cannot fully mitigate, including the ongoing volatility in the foreign currency and raw materials markets, as well as the wider potential implications of Brexit on our business and the UK economy. We are already starting to see some purchase price challenges in our UK business from the ongoing weakness in Sterling and we expect these pressures to increase over time if that weakness persists. However, as an international business with over 70% of our revenue being generated outside of the UK, the Board remains confident we have the flexibility and foresight to meet these challenges head on as and when they arise.

Right now, in what is our seventh year of continuous profitable growth, with a strong balance sheet, renewed banking facilities and a dedicated, motivated and professional team of people around the world, the Group is in a great position to keep moving forward."