In the face of “the challenging macroeconomic environment” Trifast plc reported revenues eroded by -2.7%, on a constant exchange rate basis, to GB£102.2 million. Underlying operating profit margins held up at 10.6% (CER).
At actual exchange rate half year revenues were down -1.8%. Underlying operating profit margins held in double digits at 10.6% (CER) - compared with 11.3% in the first half previous year. Profit before tax was -1.0% down at GB£7.9 million.
Trifast says ongoing market share wins restricted Group automotive revenue reduction to -2.5%, against a global production downturn of -7.3%*. The Group spent GB£2.5 million during the half year on Project Atlas, its multi-year investment in systems, policies and procedures, reported as on track and on budget.
With a strong balance sheet and around GB$40 million banking facility headroom, Trifast sees itself well positioned to take advantage of increased M&A opportunities resulting from market conditions.
Non-executive Chairman, Malcolm Diamond MBE, commented: “Despite the short-term end market weaknesses and macroeconomic uncertainty, we are confident in the strong long-term fundamentals of our business model. The Board remains committed to its ongoing investment driven growth strategy and is optimistic for the long-term future."
"After ten years of continuous growth and strong cash generation, we have a very solid balance sheet. This coupled with our new banking facilities provides us with significant flexibility and security, to continue to invest and to make sure that when the macroeconomic environment begins to settle, we have the best foundation and are in the best possible position to add further stimulus to our growth ambitions."
In a separate announcement Trifast said Malcolm Diamond had notified the board of his intention to retire as Non-executive Chairman and step down as a director with effect from 31st March 2020, the Group’s year end. Trifast announced that current non-executive director, Jonathan Shearman will take over as Non-executive Chairman with effect from 1st April 2020. Malcolm Diamond said: "Having overseen the smooth CEO and CFO succession plan at Trifast as well as the adoption of the transformational 'Project Atlas', now halfway through its four year implementation, I feel comfortable in retiring as Chair at the end of March 2020 knowing that the TR Board and the business is in such good shape."
*Source: European Automobile Manufacturers’ Association ACEA.
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.