Trifast (TRI) issued a profit warning following persistently weak performance in a range of key sectors, particularly in automotives, which has hampered the industrial fastenings supplier in the UK, Europe and Asia.
In July, Trifast announced an 11 per cent drop in full-year pre-tax profits to £16.4m from FY2018. Precision Technology Supplies, a 2018 acquisition, performed well, achieving double-digit growth and contributing 3.6 per cent revenue growth over the period. But Trifast’s net debt nearly doubled as a partial consequence of the deal, and the company is now looking altogether more precariously-positioned in the face of a sustained slowdown in its end markets.
A half-year trading update issued in advance of its interim results, which will be published on 19 November, disclosed that challenging market conditions had continued to affect the business following on from an update at the company’s July annual general meeting, where this was highlighted.
“This has led to some reduced volumes to existing builds across the UK, Europe and Asia,” Trifast said. The company added that lead times on production schedules have extended following a number of new business wins.
Trifast has downgraded its forecasts for its underlying full-year 2020 pre-tax profits to around £22m. It had previously held a forecast range of between £24m and £24.3m, which would rise to between £25m and £25.6m in 2021. A company spokesperson did not disclose whether Trifast’s 2021 forecasts had been updated.
