TIDMTRI
RNS Number : 7947C
Trifast PLC
20 April 2017
Thursday, 20 April 2017
Trifast plc
('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.
Highlights
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."
Trading
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.GBP3m; 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.
Currency
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 GBP1.0m 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.GBP1.4m.
Financial position
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.
Editors' note:
Trifast plc
LSE Premium Listing: Ticker: TRI
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
LinkedIn: www.linkedin.com/company/tr-fastenings
Twitter: www.twitter.com/trfastenings
Facebook: www.facebook.com/trfastenings
Enquiries please contact:
Trifast plc
Malcolm Diamond MBE,
Chairman
Mark Belton, Chief
Executive Officer
Clare Foster, Chief
Financial Officer
Office: +44 (0) 1825
747630
email: corporate.enquiries@trifast.com
Peel Hunt LLP
Stockbroker & financial
adviser
Justin Jones or Matthew
Brooke-Hitching
Tel: +44 (0) 20 7418
8900
TooleyStreet Communications
IR & media relations
Fiona Tooley
Tel : +44 (0)7785
703523
email: fiona@tooleystreet.com
This information is provided by RNS
The company news service from the London Stock Exchange
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