Trifast Plc - Half-yearly financial report for the six months ended 30 September 2014

“Solid underlying organic growth - best trading period ever”

“The Board remains optimistic about the Group’s outlook and expects trading to exceed its expectations for the financial year”


Key Financials
Counting Operations     
Change
HY 2014 
V
HY 2013
Half Year
30.09.2014
Half Year
30.09.2013
Full Year
31.03.2014
Group Revenue +13.4% £74.03m £65.26m £129.78m
Gross Profit % +130bps 29.0% 27.7% 27.7%
Underlying Profit Before Separetly Disclosed Items +45.6% £7.07m £4.86m £9.70m
Operating Profit +15.9% £5.39m £4.65m £9.41m
Pre-tax Profit Before Separely Disclosed Items +45.6 £6.63m £4.55m £9.16m
Pre-tax Profit +13.8% £4.94m £4.34m £8.87m
Adjusted Diluted Earnings Per Share +39.5% 4.10p 2.94p
5.95p
Basic Earnings Per Share +1.3% 3.10p 3.06p 6.08p
Dividend:
Interim
 
+5.50%
-
0.60p
 
-
0.40p
 
1.40p
 
Net (debt) / Cash   (£17.53m) £3.55m £2.03m
Return on Capital Employed (ROCE)  +210bps 17.% 15.2% 15.5%

2014 Highlights

  • Best six month’s profit in the Company’s history 
  • Gross margin up 130bps to 29.0% 
  • Overheads as a percentage of revenue reduced by 80bps to 19.4% over HY2013 period 
  • VIC acquisition in May 2014 has integrated well and contributed as expected during the period 
  • New investment in manufacturing plant initiated in Italy, Malaysia and Taiwan
  • Continue to extend our geographic boundaries in the USA, Central Europe and Thailand 
  • Additional sales engineers recruited, inducted and starting to introduce new business 
  • Sales to distributors from Lancaster Fastener growing well into most of EU

“During the period VIC has performed and integrated well; both VIC and TR management are encouraged by the growth opportunities deriving from sales and marketing working together.”
 
“By recruiting several additional sales engineers for the automotive and telecoms sectors during the first half year, we now have the necessary resources to continue the pace of organic growth. These investments have also been matched with new manufacturing plant for Italy and Asia, thus allowing more production to be placed in-house.”
 
“Meanwhile, margin improvement continues to be driven by on-going operational process efficiencies, particularly in warehouse storage, order picking and packaging. The ‘self-help’ programme initiated back in 2011 keeps on giving with regard to productivity and cost efficiencies, and clearly forms a solid foundation to the now well established ‘continuous improvement’ philosophy and culture.”
 
“In late October, we conducted an in-depth audit of our order pipeline and concluded that it was as strong, if not stronger than ever before. However, there are no grounds for complacency as market dynamics can change rapidly.”
 
“The order book position and current levels of organic growth are such that the Board remains optimistic about the Group’s outlook and expects trading to exceed its expectations for the financial year as a whole. At the same time the Board continues to identify, approach and assess the next strategic acquisition opportunity through adopting the well proven investment criteria that have recently served Trifast well in Malaysia and Italy.”

Enquiries


Trifast plc
Malcolm Diamond MBE, Executive Chairman
Telephone: +44 (0) 1825 747366
Mobile: +44 (0) 7979 518493

Peel Hunt LLP
Stockbroker and financial adviser
Justin Jones
Mike Bell
Telephone: +44 (0) 20 7418 8900

TooleyStreet Communications IR, corporate & media relations
Fiona Tooley
Mobile: +44 (0) 7785 703523

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