Trifast PLC Trading Update
RNS Number : 9840C
14 February 2020
The information contained within this announcement
is deemed by the Company to constitute inside information
stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
(Trifast, Group or TR)
"Holding the world together"
International specialist in the design, engineering, manufacture
of high quality industrial and Category 'C' fastenings
principally to major global assembly industries
London, Friday, 14 February 2020 : The Board of Trifast provides
the following unaudited trading update covering the Q3 financial
period and up to the date of this announcement.
In our Half-year results for the six months ended 30 September
2019, we commented that in the current financial year we expected
trading to be weighted towards the second half in line with our
normal trading pattern. However, since our announcement in November
2019 market conditions have become more challenging than had been
anticipated, reflecting greater volatility of results in Q3, and a
slower than forecast start to Q4 (the latter being historically our
strongest quarter in the financial year).
The impact of this weakness has continued to constrain revenue
growth across a number of our sectors. With a corresponding
reduction in gross and operating margins against a semi-fixed cost
base being further impacted by deferred start of production dates.
As a result, following a review of our year-to-date results and an
update to our Q4 forecasts, the Board has concluded that the
Group's underlying profit before tax in FY2020 is now expected to
be at the lower end of analysts' forecasts.
To date the impact of the Coronavirus epidemic has been
restricted to the extended closure of our Chinese sites and a
corresponding reduction in locally generated revenues. It is not
possible at this time to assess how extensive any longer term
impacts will be, but we are already working closely with our
customers and supplier base, only c.10% of which originates in
mainland China, to minimise these risks as far as possible.
Both FY2021 and FY2022 are key investment years for the Trifast
business. Not least as it is over this time period that we will see
the majority of the global roll-out of Project Atlas take
We remain confident that this transformational investment in our
systems, processes and procedures will drive at least a 25% return
on investment. With benefits expected across all parts of our
business from sales generation, supplier management, warehouse
efficiencies and improved data and management information. Whilst
the project timetable continues to be on track and on budget, in
the current volatile macro-economic environment, the shorter-term
phasing of that benefit realisation is likely to be slower than was
Notwithstanding the current high levels of uncertainty, we are
pleased to report that our pipeline of new wins is strong and
activity levels around the Group continue to be encouraging. This
means despite a challenging FY2020 the business remains well
positioned in its markets and we are optimistic regarding prospects
for revenue growth in FY2021 and beyond. We are encouraged and
supported by the fact that we have lost neither business nor
customers over this difficult period and continue to hold preferred
supplier status at a wide range of large manufacturers across the
The strong long-term fundamentals of our business model and
strategy are unchanged and the Board continues to be optimistic for
the medium-term future.
The Company will provide a further Trading update in April ahead
of annual results scheduled to take place on 23 June 2020.
Enquiries please contact:
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
Tel: 44 (0)20 7418 8900
IR & media relations
Tel : 44 (0)7785 703523
Email : email@example.com
LSE Premium Listing: Ticker: TRI
LEI number: 213800WFIVE6RUK3CR22
Group website: www.trifast.com
Trifast plc (TR) is an international specialist in the design,
engineering, manufacture and distribution of high quality industrial
and Category 'C' fastenings principally to major global assembly
TR employs c.1300 people across 32 business locations within the
UK, Asia, Europe and the USA including eight high volume, high-quality
and cost-effective manufacturing sites across the world. TR supplies
over 5,000 customers in c. 75 countries worldwide.
As a full-service provider to multinational OEMs and Tier 1 companies
spanning several sectors, TR delivers comprehensive support to its
customers across every requirement, from concept design through
to technical engineering consultancy, manufacturing, supply management
and global logistics.
For more information, visit
Investor website : www.trifast.com
Commercial website: www.trfastenings.com
LinkedIn : www.linkedin.com/company/tr-fastenings
Facebook : www.facebook.com/trfastenings
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(END) Dow Jones Newswires
February 14, 2020 02:00 ET (07:00 GMT)
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