Trifast sees FY profits rise 45% on strong results both at home and abroad
BIRMINGHAM-based fasteners manufacturer Trifast has produced a strong set of full year results based on growth both in the Far East and the UK. The group has said it remains very optimistic that the performance will be matched during the current year.
For the year ended March 31, 2012, group revenue increased by 8% to £121.54m (2012: £112.51m), reflecting in the main the beneficial impact of the full integration of its Malaysian acquisition, PSEP, which it took over in December 2011.
Underlying pre-tax profit rose 45% to £7.25m (2012: £5m), with basic earnings per share increasing 27% to 4.39p (2012: 3.45p). The group has recommended a final dividend of 0.80p, an increase of 60% (2012: 0.50p).
During the year, the group was successful in replacing older, non-profitable contracts with new business wins at improved margins although it did experience high attrition levels in both the UK due to customer ‘end of life’ builds finishing and within Asia when two major transfer contracts from Europe came to an end.
Within the UK, revenue remained relatively stable despite a generally lower demand from UK customers and the transfer of some business to an operation in Hungary. Europe delivered a strong performance with increased sales across all operations in particular Holland and Sweden where it was successful in winning new Automotive business. The increase in revenue from its North American operation was said to reflect the confidence returning to the US economy.
The UK markets performed well resulting in a 50.7% increase in profits contribution. Europe more than doubled its 2012 operating profit performance to £1.11m with strong performances also being achieved within the Nordic region. Asia benefitted from the positive addition of PSEP into the group but conversely was impacted by the loss of business to China. In the United States, the effects of the 2011 restructuring programme brought the region back into profit.
“As stakeholders know, the global market for fasteners and related components for assembly is vast, and in terms of penetration, TR’s revenue is barely measurable; however, even though the market remains fragmented there is an opportunity for smaller more flexible players like ourselves to be ‘strategic consolidators’,” said the group in its results statement.
“The board remain very optimistic that the phrase a ‘World of Opportunity’ initiated last year is gathering momentum as the group’s structure and focus enables further organic growth, and when combined with new business and niche expansion opportunities, (Trifast’s) operational teams feel confident in their ability to deliver strong results through 2013/14, and into the future.”
It said the relentless focus on profit growth and cash generation had resulted in all key performance indicators being met. This was achieved on a lower percentage cost base and within a global ‘mixed’ market sector backdrop. More importantly, it said a team focus on the objectives set last year had reaped dividends.
