TIDMTRI
RNS Number : 2307W
Trifast PLC
22 April 2021
Trifast plc
(Trifast, TR, Company or Group)
Leading international specialist in the design, engineering,
manufacture, and distribution
of high quality industrial and Category 'C' components
principally to major global assembly industries
"Our fastenings enable innovation today to build a better
tomorrow"
TRADING UPDATE
"The future looks bright with sustained year-on-year Q4 growth
and a strong pipeline across all our regions"
London, Thursday, 22 April 2021 :Trifast plc issues the
following unaudited Trading Update covering the Group's financial
year ended 31 March 2021 ahead of the announcement of its Annual
financial results.
FY2021 Highlights:
-- Return to monthly year-on-year growth throughout H2, drives a resilient trading performance
-- Cost saving actions help to support ongoing investments for future growth
-- Strong cash generation reinforces the Group's financial position
-- Balance sheet further strengthened by GBP16m equity raise in
June 2020, providing capacity to support growth investment
-- Project Atlas - review underway to prioritise speed of
roll-out over total costs given the high ROI on this project
-- Strong pipeline and high activity levels build confidence for the future
-- M&A opportunities increase
Trading
Over the course of Q4 we have seen demand in our key end markets
and regions increase on a sustained basis. Revenue growth continues
to be strongest in our Europe region, more than offsetting a slower
recovery in the USA. Group trading increases continued in both
February and March leading to >7% year-on-year growth for Q4
overall (at constant exchange rate). As a result of this strong
performance, we expect FY2021 to exit ahead of current market
expectations on an underlying basis (before IFRS2 presentational
changes, as noted below).
Ongoing global logistical challenges have continued to impact
operations across all sectors of our business.
These have included container freight issues, as well as a
global shortage of steel, causing pricing and lead time pressures.
We are working closely with affected customers and suppliers to
appropriately manage this; however, we do expect to see some impact
on buy/sell margins at least in the shorter term.
Over the course of FY2021 we have taken a series of measured
cost saving actions to protect profitability. An element of this is
expected to drive recurring efficiency gains, helping to offset in
part those areas of the business where we plan to make targeted
investments to support our ongoing growth journey for the longer
term. We look forward to providing more details on this when we
announce our year-end results.
As ever, we remain very grateful to the wider TR teams for all
their hard work and loyalty in managing the Group's operations in
these challenging times.
Project Atlas - a transformational investment to build an
efficient and integrated global business
Following the successful pilot in October 2020, we are ready to
begin roll-out across our distribution businesses. Our Atlas HR
management system is already operating in 16 locations, helping us
to better support our people around the world.
The ongoing Covid-19 travel restrictions are inevitably
continuing to impact the project whilst increases in trading
volumes and current logistical challenges (compounded in the UK
with Brexit) are putting additional operational pressure on our
underlying businesses. We remain conscious that any timetable
delays will push the benefits case realisation (>25% ROI)
further out, whilst also incurring ongoing project costs for a
longer period of time. We recognise the importance of this project
as it is a key part of our ongoing evolution, therefore, we are in
the process of revisiting both the project timetable and budget
together, to reach a sensible compromise that prioritises speed of
delivery over total expected costs.
Summary and looking ahead
Demand has returned to our traditional end markets and we are
already actively working with new and existing customers across a
number of new high growth markets, including Electric Vehicle &
battery technology, 5G infrastructure and healthcare.
The Group's return to sustained growth since September 2020, in
addition to a very strong pipeline and high activity levels across
all our key sectors, means we are looking ahead with confidence
although, we remain mindful of macro level headwinds including
future possible pandemic related restrictions.
Throughout FY2021 we have remained highly cash generative and we
ended the year with a strong balance sheet, a net cash position and
significant facility headroom. All of this will help to support the
non-organic side of our growth journey, where we are already seeing
both the number and quality of opportunities increasing.
Notice of Annual results
The Directors look forward to providing a further update at the
time of the Group's full-year results which are scheduled to be
released on Tuesday, 22 June 2021.
Notes:
Market consensus
Company compiled consensus shows market expectations of revenue
c.GBP175m; underlying profit before tax c.GBP11m (before
presentational changes).
Presentational changes
Sector analysis
Following a year of heightened change and technological
development in our end markets, we have revisited our sector
analysis in FY2021 to better reflect how we view these markets and
the opportunities within them.
IFRS 2 - Share-based payment
As noted in our previous financial reporting, up until FY2021 we
have presented IFRS2 share-based payment charges as separately
disclosed items within administrative expenses. This was because
the underlying equity award schemes that form the basis of these
charges were under a period of significant development.
Specifically, due to the cessation of the Board deferred equity
scheme in operation until FY2017 and the introduction of annual
rolling three-year Board, Operational Executive Board (OEB) and
Senior Manager LTIP awards.
As the development of these schemes is now broadly complete, we
intend to present these costs from FY2021 within underlying
results. The impact of this on the FY2021 results is expected to be
GBP1m - GBP1.5m.
Further details (including comparative analysis) for both of the
above changes will be presented in the FY2021 Annual Report.
Enquiries please contact:
Trifast plc
Jonathan Shearman, Non-Executive Chair
Mark Belton, Chief Executive Officer
Clare Foster, Chief Financial Officer
Tel: +44 (0) 1825 747630
Email: corporate.enquiries@trifast.com
Peel Hunt LLP (Stockbroker & financial adviser)
Mike Bell
Tel: +44 (0)20 7418 8900
TooleyStreet Communications (IR & media relations)
Fiona Tooley
Tel: +44 (0)7785 703523
Email: fiona@tooleystreet.com
Editors' note:
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LSE M ain market Premium Listing: Ticker: TRI
LEI number: 213800WFIVE6RUK3CR22
Trifast plc (TR) is an international specialist in the design, engineering, manufacture,
and distribution of high quality industrial and Category 'C' component s principally
to major global assembly industries.
TR employs c. 1,300 people across 32 business locations within the UK, Asia, Europe,
and the USA including seven high-volume, high-quality, and cost-effective manufacturing
sites across the world.TR supplies to over 5,000 customers in >75 countries worldwide,
with no one customer representing greater than 7% of revenue. As a full-service provider
to multinational OEMs and Tier 1 companies spanning several sectors, TR delivers
comprehensive support to its customers across every requirement, from concept design
through to technical engineering consultancy, manufacturing, supply management and
global logistics.
Trifast and TR are registered trademarks of the Company.
For more information, visit
Investor website : www.trifast.com
Commercial website: www.trfastenings.com
LinkedIn : www.linkedin.com/company/tr-fastenings
Twitter: www.twitter.com/trfastenings
Facebook : www.facebook.com/trfastenings
https://www.londonstockexchange.com/stock/TRI/trifast-plc/our-story
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