In a trading statement ahead of its provisional results, Trifast plc reports a solid finish to its year ending 31st March 2019, with revenue growth across all regions and Group underlying profit ahead of management expectations.
Trifast says Europe was a key driver for organic growth, with double-digit revenue increases across five of seven entities including Holland, Hungary and Germany. Reduced domestic appliance volumes, as the result of more normalised trading conditions in its Italian operations, offset some of the increases. However, TR Espana, the Group’s newest greenfield site, successfully secured its first GB£1 million (€1.2 million) annual sales.
In Asia, year-on-year growth was solid across the region with strong domestic appliance sector increases in Singapore offset by a demand fall in China.
The latter was due to a local factory closure of a multinational OEM customer, as well as the effect of US tariffs for some multinational customers. Trifast sees the Asia region as a continued strong growth opportunity, which it will supplement by additional investments in its Taiwanese manufacturing operation.
Trifast’s smallest region, the USA, continued to perform very strongly with year-on-year growth rates of over 30% – largely driven by market share gains at existing multinational tier 1 and OEM customers in the automotive and electronics sectors.
Overall strong growth in the UK reflected the successful acquisition of Precision Technology Supplies, which achieved double-digit growth in its first full year with Trifast. Organic growth, however, saw a slight reduction, due to the downturn in UK automotive manufacturing volumes.
Globally, the automotive sector continues to present Trifast with significant opportunities for organic growth through a mix of cross-selling new technologies on the back of the evolution to electric vehicles.
Trifast ended the financial year with Group underlying profit before tax (AER and CER) slightly ahead of management expectations. Excluding Europe, where investment levels were highest, all regions delivered profit growth.
Trifast also noted new GB£80 million Group banking facilities, providing significant additional headroom to support its organic and M&A investment driven growth strategy.
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.