In a pre-close season trading update, the main market-listed industrial fastenings group said that, on a constant currency basis, the financial year ended 31 March 2017 “finished strongly, with the Group's main geographies all contributing to trading results ahead of management expectations.”
Trifast added that it had entered the new financial year in “robust shape” with an encouraging pipeline and opportunities across key sectors and locations.
The group also highlighted its strong cash generation, with net debt at the year-end lower than anticipated.
Sterling weakness provides some purchase price challenges
The firm pointed out, as reported previously, that it has already started to see some purchase price challenges in its UK business from the ongoing weakness in sterling and it “remains mindful these pressures may increase over time if that weakness persists.”
“Nonetheless,” it added, “as we enter this new financial year, we remain confident in our prospects, underlying growth performance and capital investment objectives.”
The group pointed out that over 70% of its revenue is generated outside of the UK.
Over the financial year, Trifast said its overall margin held up well despite the continued weakness of sterling which had an additional positive translation impact on the group's underlying pre-tax profits of around £1.4mln in the second half.
Mark Belton, Trifast’s CEO said: "We remain confident in the Group's strategy; our underlying business is delivering against our core KPIs and is continuing to perform well.”
Broker N+1 Singer positive on Trifast’s prospects
In a note today reiterating a ‘buy’ rating on Trifast, analysts at broker N+1 Singer said: “Trifast has provided a positive year end trading update, with good performances across all geographies.
They added: “We anticipate increasing our PBT forecasts by a mid-single digit percentage, and also reducing our net debt estimates. We remain positive on prospects for Trifast and expect the share price to respond positively today.”
In lunchtime trading, Trifast shares were nearly 3% higher, up 6p at 220p.
The firm will report its results for the full-year ended 31 March 2017 on 13 June 2017.