Profits rose sharply at nut and bolts firm Trifast last year, as margins improved and the benefits of acquisitions fed through. Prospects remain good, too, which is why the highly regarded management team has reinstated the dividend and committed to an ambitious new three-year plan to double the size of the business.
A 17 per cent increase in underlying pre-tax profit to £4.4m was all the more impressive given that Trifast had to negotiate a tsunami in Japan, floods in Thailand and economic crisis in Europe. Car maker Saab went bust, too. Yet, add in the acquisition of Malaysia's Power Steel in December and profits grew a third to £5m. And there'll be more acquisitions given Trifast's growth aspirations, most likely in Asia where margins are almost double.
Still, Europe and the US did best this time round; contract wins in Holland and Hungary driving sales up 10 per cent and returning the business back into profit. And chief executive Jim Barker is bemused by the recent dire UK manufacturing data. He's "busy" dealing with order enquiries in the US, Europe and Asia, particularly from electronics and automotive firms, and expects growth to accelerate this year and next.
Arden Partners has upgraded adjusted pre-tax profit forecasts by 4 per cent to £7.1m, giving adjusted EPS of 4.6p (£5m and 3.8p in 2011).
TRIFAST (TRI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 46p | MARKET VALUE: | £49.2m | |
| TOUCH: | 44.5-46p | 12-MONTH HIGH: | 54p | LOW: 35p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 50p* | NET DEBT: | 16% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 122 | 6.2 | 4.4 | 2.80 |
| 2009 | 105 | -11.0 | -13.5 | 0.93 |
| 2010 | 86 | -2.8 | -2.6 | nil |
| 2011 | 106 | 2.5 | 1.9 | nil |
| 2012 | 113 | 4.8 | 3.5 | 0.50 |
| % change | +6 | +89 | +79 | - |
Ex-div:27 Jun Payment:18 Oct *Including intangible assets of £17.9m, or 17p a share | ||||
