Trifast announces excellent 2017 results
Trifast Plc has announced preliminary results for the year ending 31st March 2017 showing underlying profit before tax at GB£20.5 million (€23.3 million), up 28.1% at Actual Exchange Rate (+13.2% at Constant Exchange Rates).
Total group revenue was GB£186.5 million (AER), an increase of 15.6% on previous year (GB£172.6million: CER +7%). Gross profit increased to a record 31.1%
from 29.7% previous year. Revenue from supplying multinational OEMs increased by 10% at constant exchange rates. Trifast notes that “significant FX
tailwinds”, resulting from the high proportion of its revenues obtained from outside the UK, added GB£2.4 million to underlying profit before tax.
Strong cash conversion reduced net debt to GB£6.4 million from GB£16 million the previous year. Capital investment of GB£2.9 million increased TR’s
manufacturing capacity and capabilities, “with more to follow”. Group CEO, Mark Belton, identified investment “as one of TR’s key strategies for growing”.
Revenue from European operations increased by close to 10% year-on-year, over half of which, Mark Belton noted, had come from the Group’s recent acquisition
in Germany– TR Kuhlmann – which had “integrated really well and its performance has been better than expected”. Asian business grew by around 6%, with
growth particularly strong in the second half of the year. Most sites, said Belton, performed well with “notably, our Malaysian operation, Powersteel,
returning to growth”. UK operations also grew, propelled by sales to the automotive sector and to European distributors. The American region, said
Belton, was “by far our smallest division” but, as it has done before, has continually “delivered double-digit growth”.
Commenting on prospects Mark Belton said: “The current financial year has started well and, with a robust pipeline in place, there is no indication this
will change. The additional investments we are making in our people across the world, including into our global and local sales teams, mean the Group
is in a good position to move forward. There are, of course, some macroeconomic factors we cannot fully mitigate, including movements in foreign currency
and the ongoing volatility in the raw materials markets, as well as the wider potential implications of Brexit on our business and the UK economy.However,
taking the Group as a whole, with our geographical diversity, our balanced sector mix and our clear strategies for growth, we remain optimistic about
the Group’s prospects.”