Half year trading update and notice of results

Trifast PLC

24 October 2023

 

Trifast plc

(Trifast, Group or the Company)

Half year trading update and notice of results

London, Tuesday, 24 October 2023: Trifast (LSE: Main Market symbol: TRI) provides the following update for the six months ended 30 September 2023 ("HY24"), ahead of the publication of its interim results.

HY24 trading update

First half trading has been resilient in what has been a challenging macro-economic and geopolitical environment. Revenues for HY24 were down by c.2% year-on-year (c.1% down at constant exchange rates) driven by reduced demand mainly in health & home and our distribution channels, partially offset by light & heavy vehicle growth.  With a strong pipeline of contracted wins we continue to see benefit from our focused customer and market segment programmes.  

Our initiatives on gross margin enhancement have delivered a 100bps year-on-year improvement and the focus on working capital efficiency has helped reduce net debt by £10m to c.£28m, from £38m as at 31 March 2023, improving our banking covenant leverage ratio to c.1.6x (FY23: 2.19x).

We are pleased to report that we are already seeing some initial benefit from the consolidation of UK facilities into the purpose-built National Distribution Centre in the West Midlands, with cost savings to date being c.£0.2m.  We remain on track to achieve completion by the end of the financial year and expect delivery of benefits in line with our business case.

Outlook

As previously guided, the financial year ending 31 March 2024 ("FY24") will be weighted to the second half.  Whilst we remain confident in the delivery of our revenue pipeline generation, margin improvement and working capital plans, we are mindful of the elevated uncertainty over demand conditions as a result of ongoing macro-economic challenges and recent global geopolitical unrest.  Based on current demand visibility and the further contribution of our own recovery plans, the Board's expectations for FY24 are unchanged.

Looking ahead, the Group's business foundations remain strong and whilst the short-term trading environment continues to be uncertain and challenging, the execution of the commercial and operational improvement programmes underpin the Board's expectation in delivering significantly stronger future performance.  Led by the recently appointed CEO, the newly structured Executive team is maintaining its focus and pace to achieve its aspirations of a return to growth and double-digit EBIT margins over the medium-term.

Notice of Half-year results

The Group's Half-year report for the period ended 30 September 2023 is scheduled to be released on Tuesday, 21 November 2023 via the Regulatory News Service (RNS).  The Report will also be published on the Company's website at www.trifast.com.

The Company is also planning to hold a 'live' presentation via the Investor Meet Company platform (IMC).  The session will start at 11.30am on the same day.  The CEO Iain Percival, CFO Darren Hayes-Powell and COO Dan Jack will host this event.  Questions can be submitted pre-event via the IMC dashboard up until 9.00am the day before the meeting or at any time during the presentation. 

Further enquiries please contact:
Trifast plc Christopher Morgan, Company Secretary Tel: [phone]	Email: [e-mail] Shareholders: [e-mail]
Peel Hunt LLP (Stockbroker & financial adviser) Mike Bell Tel: [phone]
TooleyStreet Communications (IR & media relations) Fiona Tooley Tel: [phone]	Email: [e-mail]

Notes:

Market consensus

Current market consensus compiled by the Company for the year ending 31 March 2024

is an underlying profit before tax of c.£12.0m.

To read more visit:  Trifast plc | Equity research (trfastenings.com)

Half-year results presentations and roadshow

1.    The analysts presentation will be held at 10.00am on Tuesday 21 November.

2.    Investors who already follow Trifast on the IMC platform will automatically receive an invitation to join the IMC event.  To sign up to Investor Meet Company and add to meet Trifast please follow the link: https://www.investormeetcompany.com/trifast-plc/register-investor. 

3.   Further information regarding the Trifast roadshow programme can be obtained by contacting either Peel Hunt or TooleyStreet Communications (details below).

About Trifast plc (TR)

Founded in East Sussex in 1973, TR is a leading international specialist in the design, engineering, manufacture, and distribution of high-quality industrial fastenings and Category 'C' components principally to major global assembly industries.

The Group supplies to customers in c.70 countries across a wide range of industries, including light vehicle, heavy vehicle, health & home, energy, tech, & infrastructure (ET&I), general industrial and distributors.  As a full-service provider to multinational OEMs and Tier 1 companies spanning several sectors, we deliver comprehensive support to our customers across every requirement, from concept design through to technical engineering consultancy, manufacturing, supply management and global logistics.

As an international business we are able to provide 24/7 customer support from across key regions in the UK, Asia, Europe and North America. In addition to our service locations, we operate a number of manufacturing facilities focused on high volume cold forged fasteners and special parts. We have also established Technical & Innovation Centres to support R&D and customer collaboration across the world.

For more information, visit:

TRIFAST PLC TRI Stock | London Stock Exchange

Our website: www.trifast.com

LinkedIn: www.linkedin.com/company/tr-fastenings

Twitter: www.twitter.com/trfastenings

Facebook: www.facebook.com/trfastenings

TR Annual Report 2023: https://www.trfastenings.com/investors/reports-and-presentations

TR Sustainability Report 2023: https://www.trfastenings.com/investors/reports-and-presentations

Trifast, TR and TR Fastenings are registered trademarks of the Company

LEI number: 213800WFIVE6RWK3CR22

 

END