Half-Yearly Financial Report for the Six Months Ended 30 September 2016

"Yet another record breaking six months, with strong underlying trading growth driving our underlying PDT up by 8.0% at CER (20.3% at AER)."


Key Financials

 
Counting Operations (Actual Exchange Rate, AER)
Change
HY2017 V HY2016
HY20117
HY2016
FY2016
Group Revenue +14.9% £89.7m £78.1, £161.4m
Gross Profit % +230bps 31.6% 29.3% 29.7%
Underlying Operating Profit * +18.7% £10.3m £8.6m £16.8m
Operating Profit +17.3% £8.8m £7.5m £13.9m
Underlying Pre-tax Profit * +20.3% £9.9m £8.3m £16.0m
Profit Before Tax +19.1% £8.5m £7.1m £13.1m
Underlying Diluted Earnings Per Share * +24.2% 6.27p 5.05p 9.99p
Diluted Earnings Per Share +24.8% 5.33p 4.27p 8.50p
Basic Earnings Per Share
+24.67%
 
5.50p
 
4.41p
 
8.78p
Interim/total dividend^ +25.0% 1.00p 0.80p 2.80p
Net debt
-£2.1m £14.2m £16.3m
£16.0m
Return on Capital Employed (ROCE)* -70bps 18.6% 19.3% 18.5%
* Before separately disclosed items (see note 2).
^ Change is in interim dividend only.

Operational Highlights

  • Total revenue increase of 8.1% at Constant Exchange Rate (CER), 14.9% at AER 
  • A growth strategy that continues to deliver - revenue from multinational OEMs grew by 8.9% at CER 
  • FX tailwinds bring additional £1.0m to underlying profit before tax 
  • Underlying diluted earnings per share up by 10.3% at CER, 24.2% at AER 
  • Growth in profitability drives interim dividend increase 
  • £0.9m capital investment programme in our manufacturing capabilities, which is expected to increase in the second half 
  • Ongoing investment for growth in our sales teams and operations around the world 
  • TR Fastenings Espana – an exciting new TR location near Barcelona giving the Group access to a key growth market 

“HY2017 has seen another six months of strong trading, putting us firmly on track with our expectations to achieve another record breaking financial year. 
 
There are, of course, some macroeconomic factors we cannot fully mitigate, including the ongoing volatility in the foreign currency and raw materials markets, as well as the wider potential implications of Brexit on our business and the UK economy. We are already starting to see some purchase price challenges in our UK business from the ongoing weakness in Sterling and we expect these pressures to increase over time if that weakness persists. However, as an international business with over 70% of our revenue being generated outside of the UK, the Board remains confident we have the flexibility and foresight to meet these challenges head on as and when they arise. 
 
Right now, in what is our seventh year of continuous profitable growth, with a strong balance sheet, renewed banking facilities and a dedicated, motivated and professional team of people around the world, the Group is in a great position to keep moving forward.” 
 
Malcolm Diamond MBE, Executive Chairman

Read full results: Half-Yearly Financial Report For The Six Months Ended 30 September 2016


Malcolm Half Year

Trifast PLC - Interim Results

Malcolm Diamond, Executive Chairman, provides an update on the company's interim results reporting a seventh year of continuous profitable growth, with a strong balance sheet and renewed banking facilities.
 

Click here to watch the full interview.


Board Change in 2017

Statement from the Executive Chairman, Malcolm Diamond MBE

 “Shareholders have already witnessed considerable growth in the business over recent years and will recall that as part of our initiatives to support our ongoing strategy, Mark Belton moved to CEO and Clare Foster became CFO in October 2015. 
 
Twelve months on, it is very encouraging to see that Mark and Clare are already successfully delivering on their leadership mandates and the key elements of their respective roles. In partnership with fellow executives, Geoff Budd, Glenda Roberts, and the wider Global Senior Management Team, this has created the right configuration and skillset that further enhances the Team’s capabilities and contribution to the delivery of Trifast’s strategic goals into the future. 
 
Having myself been involved in the business for over 35 years in total and as Executive Chairman since 2009, I have seen the challenges that the ever-changing landscape can bring to an ambitious international operation such as Trifast. I am reassured that under my Chairmanship, the Group has delivered record half-year results in terms of sales, profit and dividend growth. 
 
The Group is in a strong position and so I now believe that it is the right time for both the Company and myself to look to the future. Therefore, I have agreed with the Board and Nomination Committee that, with great pride, I can relinquish my executive duties at the end of the current financial year and to become Non-Executive Chairman from 1 April 2017. I look forward to continuing to work with my colleagues in my new capacity. 
 
Trifast has several interesting opportunities ahead. I am confident that with the foundations solidly in place, the executive team can take the business to its next level commercially while continuing to drive performance and results for the benefit of all stakeholders too.” 

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Enquiries


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

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

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

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