As foreshadowed at the start of October, half-year numbers for Trifast (TRI) benefited from the successful integration of the Kuhlmann acquisition in Germany, together with an improving trading performance across continental Europe. Indeed, revenue across the English Channel were up by 22 per cent at constant currencies, with over half the increase attributable to the Kuhlmann deal. And there was some good news closer to home, as the key UK domestic market returned to growth after a slight pullback in the year to March 2016. So, despite increasing charges linked to amortisation and director incentives, the industrial fastener specialist managed to drive operating profit up 17 per cent to £8.78m.
The contribution of Kuhlmann has exceeded expectations and demonstrates the efficacy of management's strategic focus on securing deals with multinational original equipment manufacturers (OEMs). Opportunities abound as the global fastener market remains fragmented, and Trifast has established a strong track record in growing market share through OEM deals and other partnerships. Projects are currently under way to boost manufacturing capacity in Italy, while last month's opening of a new greenfield site in Spain promises to improve regional penetration.
Arden Partners forecasts adjusted EPS of 11.3p for the March 2017 year-end, on adjusted pre-tax profit of £18.5m, rising to 11.6p in the following year (from 9.8p in FY2016).
| TRIFAST (TRI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 179p | MARKET VALUE: | £213m | |
| TOUCH: | 177-180p | 12-MONTH HIGH: | 179p | LOW: 104p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 79p* | NET DEBT: | 15% | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 78.1 | 7.1 | 4.4 | 0.80 |
| 2016 | 89.7 | 8.5 | 5.5 | 1.00 |
| % change | +15 | +19 | +25 | +25 |
Ex-div: 16 Mar Payment: 13 Apr *Includes intangible assets of £40.4m, or 34p a share | ||||
