TIDMTRI
RNS Number : 8468C
Trifast PLC
22 October 2020
Trifast plc
(Trifast, Group or TR)
Leading international specialist in the design, engineering,
manufacture, and distribution
of high quality industrial and Category 'C' components
principally to major global assembly industries
"Our fasteners enable innovation today to build a better
tomorrow"
London, Thursday, 22 October 2020 : Trifast plc (Main market LSE
Symbol: TRI) issues the following unaudited Trading Update ahead of
the Group's Half-year results.
Mark Belton, Chief Executive commented:
"I am encouraged by the resilience the Group has shown during
recent months. We have a robust balance sheet and are actively
pursuing commercial, operational and strategic initiatives that,
despite the necessary COVID-19 related caution, will allow us to
take advantage of the significant growth opportunities we see."
TRADING UPDATE
Following on from the update given to shareholders at the AGM
last month, the Board is pleased to report that trading in the
subsequent weeks has continued to be slightly ahead of our FY2021
base case assumptions (previously reported as FY2021 revenue c.16%
below prior year), with September being our strongest month in the
HY period. October trading levels have also started well in terms
of both sales and orders.
Year-on-year HY1 revenue declines (based on constant currency
rates (CER)) have largely been consistent across the Group with the
exception of Europe where we have seen a faster recovery, most
specifically in the domestic appliances and electronics sector,
resulting in year-on-year growth returning for the region in Q2. At
the same time, automotive trading levels took longer to recover in
the period and were significantly subdued in Q1, impacting a number
of our entities/locations around the world. However, we are
starting to see a more consistent improvement in this market and
our automotive focused greenfield site in Spain has continued to
report very strong growth throughout Q2.
With around a third of our UK business in automotive, together
with the slower relative recovery in the UK economy, this region
experienced more challenging trading conditions in the HY.
Notwithstanding this, we are very pleased to report that PTS, our
UK stainless steel distributor, continues to perform well
year-on-year in this more specialist market.
Gross margins remain lower most noticeably due to the reduction
in sales, coupled with a shift in product mix as distributor sales
have remained more muted in the period. At an underlying operating
profit level, we have been able to mitigate the impact of this in
part via cost saving actions taken.
OPERATIONAL EXECUTIVE BOARD (OEB)
At the start of this financial year we updated shareholders on
the creation of an Operational Executive Board (OEB) made up of
global and cross-functional leaders. The Board is delighted by the
early impact this team has made in driving the Group strategy. This
has been primarily centred on a review and development of the
Group's organic growth strategy at both a sector and regional
level. However, in the current uncertain environment, wider cost
optimisation programmes are also under development by the OEB, with
a clear focus on measured and appropriate actions to allow us to
both protect and sustain the Group's business whilst positioning it
for future growth.
PROJECT ATLAS
Our Group-wide investment programme to build the Trifast of
tomorrow continues to progress. We are delighted that, as
scheduled, the initial pilot site successfully went 'live' earlier
this month. Our global HR system has also begun to be implemented,
with our first site 'live' and roll-out expected to now accelerate
over the coming months.
BREXIT
Our cross-functional Brexit team, which has been in place for
the last three years, has completed its contingency planning. We
currently consider that both the operational and financial impact
of any Brexit scenario will be manageable in the short-term,
although longer-term implications for the wider UK economy remain
less easy to predict.
SUMMARY
Once again, the Directors acknowledge and thank all our
colleagues for their ongoing work and commitment to the
business.
Despite the ongoing unpredictability in the macroeconomic
environment, the long-term fundamentals of our business model and
strategy remain unchanged. As we have said previously, the pipeline
and activity levels around the Group remain encouraging.
As a full-service provider to our multinational customers,
delivering reliable product engineering, quality and supply, via
flexible global logistics solutions, we believe it is these core
skills that will allow us to once again grow by increasing market
share across a wide customer base.
NOTICE OF RESULTS
We look forward to providing a more detailed update at the time
of the Group's Half-year results for the six months ended 30
September 2020 which are scheduled to be announced on Tuesday, 24
November 2020.
Further enquiries please contact:
Trifast plc
Jonathan Shearman, Non-Executive Chair
Mark Belton, Chief Executive Officer
Clare Foster, Chief Financial Officer
Tel: +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
Editors' note:
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LSE Premium Listing: Ticker: TRI
LEI number: 213800WFIVE6RUK3CR22
Trifast plc (TR) is an international specialist in the design, engineering, manufacture
and distribution of high quality industrial and Category 'C' component s principally
to major global assembly industries.
TR employs c .1,300 people across 33 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 to over 5,000 customers in >75 countries worldwide,
with no one customer representing greater than 7% of revenue. 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
Twitter: www.twitter.com/trfastenings
Facebook : www.facebook.com/trfastenings
https://www.londonstockexchange.com/stock/TRI/trifast-plc/our-story
To read more visit: http://www.trifast.com/investors/our-reports/
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