Half-Yearly Financial Report for the Six Months Ended 30 September 2021

“Our fastenings enable innovation today, to build a better tomorrow”


Key Financials

Underlying measures

CER4 HY2022

CER4 change

AER4 HY2022

AER4 change

HY20211

HY20201

Revenue
£106.4m 31.4% £103.8m 28.1% £81.0m £103.1m
Gross profit % 26.2% (80)bps 26.3% (70)bps 27.0% 28.8%
Underlying operating profit (UOP)3 £7.7m 73.7% £7.4m 67.0% £4.5m £10.4m
Underlying operating profit %3 7.3% 180bps 7.2% 170bps 5.5% 10.1%
Underlying profit before tax3 £7.3m 84.2% £7.0m 76.8% £4.0m £9.9m
Underlying diluted earnings per share3 4.59p 102.2% 4.42p 94.7% 2.27p 6.07p
Bank facility headroom     £50.8m £10.2m £40.6m £39.9m
Adjusted net (debt)/cash5     £(5.1)m (£8.5)m £3.4m £(15.7)m
Return on capital employed (ROCE)2,3     8.8% 330bps 5.5% 11.3%
Interim dividend     0.70p N/A - 1.20p

GAAP measures

           
Operating profit     £5.7m 81.3% £3.2m £8.4m
Operating profit %     5.5% 160bps 3.9% 8.2%
Profit before tax     £5.3m 98.7% £2.7m £7.9m
Diluted earnings per share     3.22p 117.6% 1.48p 4.82p
  1. Presented after the reclassification of IFRS2 Share-based Payments, including related social security costs on exercise, into underlying results. For EPS, the impact has been a reduction of 0.04p from 2.31p. For ROCE, a reduction of 120bps from 7.8% 2. The calculation for ROCE was changed in FY2021, and therefore restated above for HY2021, to reflect an add back of gross, rather than net debt. The impact of this change is a 110bps reduction from 6.6%. HY2020 has also been restated to add back gross rather than net debt. In addition IFRS16 Leases only became effective from 1 April 2019, therefore HY2020 ROCE has been calculated from a six month average, with underlying EBIT pro-rated for a full year
  2. Before separately disclosed items (see notes 2, 6 and 9)
  3. “CER” being Constant Exchange Rate, calculated by translating the HY2022 figures by the average HY2021 exchange rate & “AER” being Average Exchange Rate
  4. Adjusted net (debt)/cash 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 liabilities, net debt would increase by £(13.4)m to £(18.5)m (HY2021: net cash would decrease by £(13.9)m to net debt of £(10.5)m)

Operational Highlights

  • Strong rebound in Q1 and solid Q2 growth drives year-on-year revenue increase of 31.4% and an increase of 3.2% over the pre-Covid HY2020 period
  • Operational gearing underpins underlying operating margin increase of 180bps to 7.3%
  • Gross margins at 26.2% are down against HY2021, but have held steady against HY2 FY2021 (26.1%), as transactional price rises offset increased inflationary pressures
  • Global price increase programme on contract customers is on course to secure normalised gross margins by Q4
  • Light vehicle sector sales outperform the market growing 34.3% (8.5% - source: LMC Automotive Ltd), through continued market share gains
  • Focused inventory investments support sales growth and protects supply in a challenging market
  • Project Atlas – costs and timetable on track, benefits starting to come through
  • Falcon acquired - a first step on our ambitious North America acquisition journey

“Demand across all sectors is strong and our order pipeline has never been higher. Increasing opportunities for expansion into key emerging technologies continue to fuel growth, supplemented by new contract wins across a range of existing and new multinational OEMs/Tier 1 customers. Our global price increase programme will pass-through cost inflation and we expect revenues to increase and gross margins to normalise in Q4 as a result.”
 

Mark Belton, Chief Executive Officer


“There really has never been a more exciting time for the Group. We believe that the combination of our reputation for ‘Trusted Reliability’, our loyal and established customer base and our balance sheet strength put us in a great position to make the most of both the organic and acquisition opportunities that surround us.”
 

Jonathan Shearman, Non-Executive Chair


Enquiries

Trifast plc

Jonathan Shearman, Non-Executive Chair
Mark Belton, Chief Executive Officer
Clare Foster, Chief Financial Officer
Office: +44 (0) 1825 747630
Email: corporate.enquiries@trifast.com

Peel Hunt LLP

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

TooleyStreet Communications

IR & media relations
Fiona Tooley
Tel : +44 (0)7785 703523
Email: fiona@tooleystreet.com

Published 23.11.2021