Trifast PLC - Trading Update
The information contained within this announcement
is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Upon the publication of this announcement via the
"Holding the world together"
International specialist in the design, engineering, manufacture and distribution
of high quality industrial and Category 'C' fastenings principally to major global assembly industries
In our Half-year results for the six months ended
The impact of this weakness has continued to constrain revenue growth across a number of our sectors. With a corresponding reduction in gross and operating margins against a semi-fixed cost base being further impacted by deferred start of production dates. As a result, following a review of our year-to-date results and an update to our Q4 forecasts, the Board has concluded that the Group's underlying profit before tax in FY2020 is now expected to be at the lower end of analysts' forecasts.
To date the impact of the Coronavirus epidemic has been restricted to the extended closure of our Chinese sites and a corresponding reduction in locally generated revenues. It is not possible at this time to assess how extensive any longer term impacts will be, but we are already working closely with our customers and supplier base, only c.10% of which originates in mainland
Both FY2021 and FY2022 are key investment years for the
We remain confident that this transformational investment in our systems, processes and procedures will drive at least a 25% return on investment. With benefits expected across all parts of our business from sales generation, supplier management, warehouse efficiencies and improved data and management information. Whilst the project timetable continues to be on track and on budget, in the current volatile macro-economic environment, the shorter-term phasing of that benefit realisation is likely to be slower than was originally anticipated.
Notwithstanding the current high levels of uncertainty, we are pleased to report that our pipeline of new wins is strong and activity levels around the Group continue to be encouraging. This means despite a challenging FY2020 the business remains well positioned in its markets and we are optimistic regarding prospects for revenue growth in FY2021 and beyond. We are encouraged and supported by the fact that we have lost neither business nor customers over this difficult period and continue to hold preferred supplier status at a wide range of large manufacturers across the globe.
The strong long-term fundamentals of our business model and strategy are unchanged and the Board continues to be optimistic for the medium-term future.
The Company will provide a further Trading update in April ahead of annual results scheduled to take place on
Enquiries please contact:
Malcolm Diamond MBE, Non-Executive Chairman
Office: 44 (0) 1825 747630
Email: [email protected]
Stockbroker & financial adviser
Tel: 44 (0)20 7418 8900
IR & media relations
Tel : 44 (0)7785 703523
Email : [email protected]
LSE Premium Listing: Ticker: TRI
LEI number: 213800WFIVE6RUK3CR22
Group website: www.trifast.com
TR employs c.1300 people across 32 business locations within the
As a full-service provider to multinational OEMs and Tier 1 companies spanning several sectors, TR delivers comprehensive support to its customers across every requirement, from concept design through to technical engineering consultancy, manufacturing, supply management and global logistics.
For more information, visit
Investor website: www.trifast.com
Commercial website: www.trfastenings.com
This information is provided by RNS, the news service of the
Quick facts: Trifast
Market Cap: £158.36 m
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