Trifast set for another record-breaking year
11 November 2016
Trifast plc has reported Group revenue for the six months to 30th September 2016 at GB£89.7 million (€102.3 million) - up 14.9% at actual exchange rate, with underlying trading growth of 8% at constant exchange rate.
Currency exchange 'tailwinds' brought an additional GB£1 million to profit before tax, taking it to GB£9.9 million, up 20.3% on the same period last year.
At constant exchange rate the underlying growth in profit before tax was 8%.
Chairman Malcolm Diamond said: "HY2017 has seen another six months of strong trading, putting us firmly on track with our expectations to achieve another
record breaking financial year.”
"There are, of course, some macroeconomic factors we cannot fully mitigate, including the on-going volatility in the foreign currency and raw materials
markets, as well as the wider potential implications of Brexit on our business and the UK economy. We are already starting to see some purchase price
challenges in our UK business from the on-going weakness in Sterling and we expect these pressures to increase over time if that weakness persists.
However, as an international business with over 70% of our revenue being generated outside of the UK, the board remains confident we have the flexibility
and foresight to meet these challenges head on as and when they arise.”
Almost all Asian, UK, Europe and USA businesses maintained organic growth. The exception was Power Steel & Electro-Plating Works in Malaysia, which
experienced reduced domestic automotive output and is therefore promoting unutilised capacity to tier 1 automotive customers in the EU and USA.
TR has recently opened a new, green field logistics centre in Barcelona to respond to customer requests for technical and logistical support locally in
Spain. Trading is expected to commence from the new operation early in 2017. Its most recent acquisition, Kuhlmann in Germany, is “performing extremely
well” and has enlarged its sales force to add more resource to domestic growth opportunities.
Diamond to switch to non-executive role
In his detailed report Malcolm Diamond announced: "In March 2009, I re-joined Trifast as executive chairman alongside Jim Barker as incoming CEO and over
seven years I have witnessed the gradual emergence of what is now considered a world class player in our sector. The seamless senior management succession
has resulted in a motivated and experienced executive board that has clear direction, focus and determination going forward. For this reason, I think
it is now appropriate that my role as executive chairman switches to non-executive chairman from April 2017 - a measured step that will provide continuity
in the boardroom and allow me more time to support my other commitments outside of Trifast."
