GLOSSARY HERO

Glossary of terms

This section contains a useful list of terms and definitions.
 
Reports and presentations
Financial calendar
Share data
 
 

A

  1. AER: Actual Exchange Rate.
  2. AGM: Annual General Meeting.
  3. Assets: Anything owned by the Company having a monetary value; e.g. fixed assets such as buildings, plant and machinery, vehicles (these are not assets if rented and not owned) and potentially including intangibles such as trademarks and brand names, and current assets, such as inventory, debtors, and cash.
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B

  1. Board: The Board of Directors of Trifast plc.
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C

  1. Capex: Capital Expenditure.
  2. Cash flow: The movement of cash in and out of a business from day-to-day direct trading and other non-trading effects, such as capital expenditure, tax and dividend payments.
  3. Category ‘C’ components: Low value components that are wrapped up into our supply proposition for a customer.
  4. CBAM: Carbon Border Adjustment Mechanism.
  5. CER: Constant Exchange Rate.
  6. Company: Trifast plc.
  7. Current assets: Cash and anything that is expected to be converted into cash within 12 months of the balance sheet date.
  8. Current liabilities: Money owed by the business that is generally due for payment within 12 months of the end of the reporting date.
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D

  1. Depreciation: The proportion of cost relating to a capital item, over an agreed period (based on the useful life of the asset)
  2. Director:  A Director of Trifast plc.
  3. Dividend: A dividend is a payment made per share to a company’s shareholders and is based on the profits of the year, but not necessarily all the profits.
  4. Dividend cover: Underlying diluted earnings per share over proposed dividend per share in the year.
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E

  • Earnings before: 
    There are several ‘Earnings before…’ ratios.
    The key ones being:
    • PBT: Profit/earnings before tax
    • EBIT/Operating profit: Earnings before interest and tax
    • EBITDA amortisation: Earnings before interest, taxes, depreciation and amortisation
    • Underlying profit before separately disclosed items
  • EDG: Export Development Guarantee.
  • EHS: Environment, Health & Safety.
  • External Auditors: RSM UK Audit LLP.
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G

  1. GAAP: Generally Accepted Accounting Practice.
  2. GHG: Greenhouse Gases.
  3. Gearing: The ratio of debt to equity, usually the relationship between long-term borrowings and shareholders’ funds.
  4. Goodwill: Any surplus money paid to acquire a company that exceeds its net assets fair value.
  5. Group: The Company together with its subsidiaries.
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I

  1. IAS: International Accounting Standards.
  2. ICAEW: Institute of Chartered Accountants in England & Wales.
  3. IFRS: International Financial Reporting Standards.
  4. IMS: Our Integrated Management System for the publication and communication of our policies, procedures, process documentation, forms, and templates.
  5. Intellectual Property (‘IP’): Intangible asset such as a trademark or patent.
  6. ISO: International Organisation for Standardisation.
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K

  1. KPI: Key performance indicator.
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L

  1. LTIP: Long-Term Incentive Plan.
  2. Legal Entity Identifier (LEI): A unique identifier for persons that are legal entities or structures including companies, charities, and trusts..
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N

  1. NCSC: The National Cyber Security Centre.
NGFS: The Network of Central Banks and Supervisors for Greening the Financial System.
NGO: Non-governmental organisation.
Non-pre-emptive rights: This term refers to an issue or sale of any equity securities by a company to which pre-emptive rights do not apply.
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O

  1. OEE: Overall Equipment Effectiveness.
  2. OEM: Original equipment manufacturers.
  3. Ordinary Shares: The ordinary shares in the capital of the Company of 5 pence each.
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P

  1. PDMR: This term stands for Persons Discharging Managerial Responsibility. These relate to people who are Board Directors or Senior Management, who have access to price‑sensitive information on a regular basis.
  2. P/E ratio (price per earnings): The P/E ratio is an important indicator as to how the investing market views the health, performance, prospects, and investment risk of a plc. The P/E ratio is arrived at by dividing the share price by the underlying diluted earnings per share.
  3. PPE: Personal Protective Equipment and includes items such as masks, helmets, gloves, eye protection, and high‑visibility clothing, all designed to keep people safe.
  4. Pre-emptive rights: Pre‑emptive rights are a clause in an option, security or merger agreement that gives the investor the right to maintain his or her percentage ownership of a company by buying proportionate number of shares of any future issue of the security.
  5. Profit: The surplus remaining after total costs are deducted from total revenue.
  6. Profit and loss account (P&L) (or income statement): 
    The P&L shows how well the Company has performed in its trading activities and would cover a trading account for a period.
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R

  1. RCF: Revolving Credit Facility.
R&D: Research and development
Reserves: The accumulated and retained difference between profits and losses year‑on‑year since the Company’s formation.
  1. Retained profit/earnings: Business profit which is after tax and dividend payments to shareholders; retained by the business and used for reinvestment.
  2. Return on capital employed (‘ROCE’): A fundamental financial performance measure. A percentage figure representing earnings before interest and tax against the money that is invested in the business.

    Underlying EBIT ÷ average capital employed (net assets + net debt) × 100 = ROCE.
  3. Rights issue: When a Company offers more of its ordinary shares to current shareholders, commonly to raise extra to raise extra capital for the business.
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S

Scope 1 emissions: Direct GHG emissions from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled machinery, vehicles, or process emissions.
Scope 2 emissions: Indirect GHG emissions. Scope 2 accounts for GHG emissions from the generation of purchased electricity, heat or steam consumed by the company and is purchased or otherwise brought into the organisational boundary of the company.
Scope 3 emissions: Other indirect GHG emissions across the value chain. Scope 3 emissions are a consequence of the activities of the company but occur from sources not owned or controlled by the company. Some examples of Scope 3 activities are extraction or production of purchased materials, transportation of purchased fuels and use of sold products and services.
  1. Share capital:  The statement of financial position nominal value paid into the Company by shareholders at the time(s) shares were issued.
  2. Shareholders’ funds: A measure of the shareholders’ total interest in the company, represented by the total share capital plus reserves.
  3. Statements of cash flow: The statements of cash flows show the movement and availability of cash through and to the business over a given period.
  4. Statements of financial position: These provide a ‘snapshot’ at a date in time of who owns what in the Company, and what assets and debts represent the value of the Company. The statement of financial position is where to look for information about short‑term and long‑term debts, gearing (the ratio of debt to equity), reserves, inventory values (materials and finished goods), capital assets, cash and the value of shareholders’ funds. The statement of financial position equation is Capital + Liabilities (where the money came from) = Assets (where the money is now).
  5. Stock Code: A stock code is used to find a listing on the regulatory market such as the London Stock Exchange. Trifast’s stock code is TRI.
  6. Subsidiary: An entity that is controlled, either directly or indirectly by the Company.
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T

  1. Third party logistics (3PL): 3PL in logistics and supply chain management is an organisation’s use of third-party businesses to outsource elements of its distribution, warehousing, and fulfilment services.
  2. Tier 1: A subcontractor to the OEM.
  3. TSR: Total Shareholder Return comprising dividends paid on ordinary shares and the increase or decrease in the market price of ordinary shares.
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U

  1. UKEF: UK Export Finance.
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W

  1. WACC: Weighted average cost of capital.
  2. Working capital: Current assets excluding cash, less current liabilities excluding debt‑like items representing the required investment, continually circulating, to finance inventory, debtors and work in progress.
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  1. A
  2. B
  3. C
  4. D
  5. E
  6. G
  7. I
  8. L
  9. M
  10. N
  11. O
  12. P
  13. R
  14. S
  15. T
  16. W