Trifast (TRI) performed well against a contracting global automotive market, as the industrial fastenings supplier grew revenues by 6.4 per cent, achieving growth across its divisions with the exception of the UK.
The domestic market’s performance was fuelled by Trifast’s £8.2m acquisition of stainless steel fastenings specialist Precision Technology Supplies (PTS) in April 2018, which achieved double-digit growth in its first year within the Trifast group and contributed 3.6 per cent revenue growth. The deal, however, has nearly doubled Trifast’s net debt level, although it remains more than manageable.
But Trifast hasn’t entirely bucked the current uncertainty in global industrials, particularly in the east. A Chinese electronics customer closed a factory, moving some production to India. Given that the company sells little to the US and China, it expects only a small impact for its customers from the countries’ ongoing trade dispute, although indirect headwinds are hitting “as the tariffs are impacting some of their decisions”, chief executive Mark Belton says.
House broker finnCap forecasts March 2020 adjusted pre-tax profits of £24.3m and EPS of 15.1p, rising to £25.6m and 15.9p in FY2021.
| TRIFAST (TRI) | ||||
| ORD PRICE: | 227p | MARKET VALUE: | £277m | |
| TOUCH: | 226-228p | 12-MONTH HIGH: | 273p | LOW: 163p |
| DIVIDEND YIELD: | 1.9% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 99p* | NET DEBT: | 12% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 155 | 11.8 | 7.4 | 2.10 |
| 2016 | 161 | 13.1 | 8.8 | 2.80 |
| 2017 | 187 | 17.3 | 10.7 | 3.50 |
| 2018 | 198 | 18.5 | 12.5 | 3.85 |
| 2019 | 209 | 16.4 | 10.1 | 4.25 |
| % change | +6 | -11 | -19 | +10 |
| Ex-div: | 12 Sep | |||
| Payment: | 11 Oct | |||
| *Includes intangible assets of £44.8m, or 37p a share | ||||
