LONDON, April 20, 2017 /PRNewswire/ --
Trifast (LSE MAIN MARKET SYMBOL: 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
- Solid organic growth across all our regions
- Growth strategy continues to deliver
across key sectors of automotive, domestic appliances,
electronics and distributors
- Strong cash generation - net debt
at year end lower than anticipated
- Trifast enters the new financial year in robust
shape
- Encouraging pipeline and opportunities across
key sectors and locations
- 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.£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.
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 £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.
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.
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: http://www.trifast.com
LinkedIn:
http://www.linkedin.com/company/tr-fastenings
Twitter: http://www.twitter.com/trfastenings
Facebook: http://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
TooleyStreet Communications
IR & media relations
Fiona Tooley
Tel: +44-(0)-7785-703523
Email: fiona@tooleystreet.com
SOURCE Trifast Plc