Good morning, it's Paul here with the SCVR for Thursday.

Thanks to everyone who attended the StockSlam (via PIWorld, 3 minute pitches for people's favourite shares, with 10 shares covered) last night, an amazing turnout of about 1,000 people. My stock idea was Renold (LON:RNO) (I hold) - where a big pension deficit seems to be obscuring strong fundamentals, and a turnaround plan that's working. Here are my notes from Renold's most recent trading update. There's a persistent seller in the market, so hopefully my comments don't trigger a spike up in price, it's awkward when that happens.

The next StockSlam is on 7 April.

Agenda -

Trifast (LON:TRI) - Q3 trading update sounds reassuring. Although worrying comments about raw materials inflation

Wilmington (LON:WIL) - Impressive interim results, but the weak balance sheet rules it out for me

Optibiotix Health (LON:OPTI) - trading update for 2020. Signs of progress, at last!


Trifast (LON:TRI)

139p (flat, at 08:22) - mkt cap £188m

Trading Update

Leading international specialist in the design, engineering, manufacture, and distribution of high quality industrial and Category 'C' components principally to major global assembly industriesTrifast plc (Main market LSE Symbol: TRI) issues the following unaudited Trading Update covering the Q3 financial period and up to the date of this announcement.

Trifast has a 31 March 2021 year end.

Trading continuing to strengthen

H2 revenues up 5% for the four months to 31 Jan 2021

FY 03/2021 revenues expected to be slightly ahead of market expectations
1. Company compiled consensus shows market revenue expectations of c.£172m

Particularly noteworthy points are -

  • Border issues (logistical challenges) re Brexit
  • Well-known problems with transport costs & container freight are mentioned
  • Global shortage of steel is causing price rises, and delays - leading to “additional margin pressure which we are working hard to mitigate”

Dividends - will be reinstated.

Outlook - sounds reassuring -

The Group's continued recovery, in addition to a strong pipeline and high activity levels, provides a solid base for the business to move forward…

My opinion - I find that Trifast tends to focus too much on revenue, and not enough on profitability, in its trading updates.

As you can see below, earnings expectations for this year and next year, are still way below (about…

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