Trifast targets global growth after FY profits surge 38%
BIRMINGHAM-based fastenings manufacturer Trifast is to press ahead with global expansion after announcing a strong set of full year results.
The company said it had seen strong growth in Asia, Europe and the United States and was keen to capitalise on new opportunities.
Revenue for the full year was up 7% to £129.78m (2013: £121.54m), with pre-tax profits up 38% to £8.87m (2013: £7.97m). Basic earnings per share rose 38% to 6.08p (2013: 4.39p) and the company has recommended a final dividend for the year of 1.40p per share, an increase of 75% on last year.
“The group performed strongly last year and started the current financial year on a similar trend. Couple this with the acquisition of Viterie Italia Centrale and the other underlying opportunities around, we are confident this all provides a solid base and confidence that will underpin and deliver Trifast’s future performance,” it said.
It added that while pleased with the organic growth reflected in the results, it was keen to add value through suitable acquisitions.
“We have openly expressed our objective to accelerate expansion by strategic acquisitions; we have also committed to applying strict criteria to the structure and current/potential performance of selected targets,” it said.
“Although at any one time there is always at least one target under scrutiny, our selectivity clearly restricts our commitment to finalising a transaction; however, there are sufficient opportunities in our market for us to remain confident that continuing our search remains entirely legitimate.”
It said the search for the right acquisition had been taking place throughout the last two years, ever since acquiring PSEP in Malaysia at the end of 2011, and post the current financial year end with the acquisition of Viterie Italia Centrale in Italy, which completed at the end of May.
It said its organic growth hotspots were spread across the globe; in the Asean region (which comprises Singapore, Malaysia, Thailand, Vietnam, Philippines and Indonesia), the USA, UK and mainland Europe plus Scandinavia.
In outlook, the company said the global fastener market had been estimated to exceed £25bn per year and was expected to continue growing at annual 5% until 2022.
“The business is continuing to benefit from the uplift in economic confidence and manufacturing output, this is being seen across a number of our key sectors and across our business units,” it said.
“The group entered this new financial year with confidence and enthusiasm; to date, underlying organic growth has been encouraging and this has been bolstered by the introduction of VIC into the Group and the opportunities that this brings.
“Management remains confident that we can continue to deliver another strong performance and we look forward to keeping all stakeholders updated with our progress.”
