Half-Yearly Financial Report for the Six Months Ended 30 September 2019

“Even in challenging market conditions, we have maintained similar revenue levels, a double-digit operating margin and solid cash generation”


Key Financials

Underlying measures

CER HY2020

(post-IFRS16)

CER change v HY2019

AER HY2020

(post-IFRS16)

AER change v HY2019

HY2019

(pre-IFRS16)

FY2019

(pre-IFRS16)
Group revenue £102.2m -2.7% £103.1m -1.8% £105.0m £209.0m
Gross profit % ^ 28.7% -150bps 28.8% -140bps 30.2% 30.0%
Underlying operating profit*^ £10.9m -8.4% £11.1m -6.7% £11.9m £24.2m
Underlying pofit before tax*^ £10.4m -10.2% £10.6m -8.5% £11.6m £23.5m
Underlying diluted earnings per share*^ 6.39p -11.3% 6.52p -9.4% 7.20p 14.53p
Adjusted net debt§     £15.7m +£2.2m £13.5m £14.2m
Return on capital employed (ROCE)*^     16.5% -300bps 19.5% 18.8%
Interim/total dividend¥     1.20p - 1.20p 4.25p

GAAP measures

 
Operating profit^     £8.4m +1.3% £8.3m £17.1m
Profit before tax^     £7.9m -1.0% £8.0m £16.4m
Diluted earnings per share^     4.82p - 4.82p 9.90p
Basic earnings per share^     4.92p -0.2% 4.93p 10.14p
* Before separately disclosed items (see notes 2, 6 and 9)
^ Presented after adoption of IFRS16 Leases in HY2020. For ROCE the impact has been a reduction of 70bps (before IFRS16: 17.2%). Less significant impacts on the remaining metrics have been explained in a separate paragraph at the end of the business review.
§ Adjusted net debt is presented, excluding the impact of IFRS16 Leases, as this is how the calculation is performed for the purposes of the Group’s banking facilities. Including right-of-use lease liabilities, net debt would increase by £16.1m to £31.8m at HY2020.
¥ Change is in interim dividend only

Operational Highlights

The investment journey continues...
  • Challenging macroeconomic environment sees revenues reduce 2.7% at Constant Exchange Rate (CER), 1.8% at Actual Exchange Rate (AER)
  • Ongoing market share wins restrict Group automotive revenue reduction to 2.5%, against a global production downturn of 7.3% (Source: European Automobile Manufacturers Association)
  • Underlying operating profit margins hold up well at 10.6% at CER (HY2019: 11.3%)
  • Underlying diluted earnings per share reduce 9.4% to 6.52p at AER
  • Project Atlas, our multi-year investment in our systems, policies and procedures is on track and on budget, with a spend of £2.5m in the period
  • A strong balance sheet and c.£40.0m of banking facility headroom provide a solid financial platform and significant flexibility to support our long-term investment driven growth plans
  • Potential M&A opportunities increase due to uncertain market conditions and an increased focus on key geographies
  • Interim dividend maintained at 1.20p reflecting the Board’s confidence in the long-term future of the business and our ongoing strong profitability

“Despite the short-term end market weaknesses and macroeconomic uncertainty, we are confident in the strong long-term fundamentals of our business model. The Board remains committed to its ongoing investment driven growth strategy and is optimistic for the long-term future”

“After ten years of continuous growth and strong cash generation, we have a very solid balance sheet. This coupled with our new banking facilities provides us with significant flexibility and security, to continue to invest and to make sure that when the macroeconomic environment begins to settle, we have the best foundation and are in the best possible position to add further stimulus to our growth ambitions.”
 

Malcolm Diamond MBE, Non-Executive Chairman


Enquiries

Trifast plc

Malcolm Diamond MBE, Non-Executive Chairman
Mark Belton, Chief Executive Officer
Clare Foster, Chief Financial Officer
Office: +44 (0) 1825 747630

Peel Hunt LLP

Stockbroker & financial adviser
Mike Bell
Telephone: +44 (0)20 7418 8900

TooleyStreet Communications

IR & media relations
Fiona Tooley
Telephone: +44 (0)7785 703523

For futher information on Trifast plc please visit our investors website: www.trifast.com