REG - Trifast PLC - Q3 Trading Update

TrifastAnnouncement

24/02/2022 07:00

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RNS Number : 6370C  Trifast PLC  24 February 2022

 

 

 

 

Trifast plc

(Trifast, or Group)

 

"Innovation today to build a better tomorrow - Growing sustainably together"

 

Q3 Trading update

 

London, Thursday, 24 February 2022: Trifast plc (LSE Main market premium
listing: symbol: TRI), leading international specialist in the design,
engineering, manufacture, and distribution of high-quality industrial
fastenings and Category 'C' components principally to major global assembly
industries, issues the following unaudited Q3 Trading Update for the period 1
October 2021 to 31 December 2021.

Mark Belton, Chief Executive Officer commented:

"Looking beyond the current period of macroeconomic challenge, Trifast has one
clear aspiration - to become a much bigger, more profitable company than the
one we are today. I would like to thank all of our teams for their ongoing
support and dedication as we work together to turn that aspiration into a
reality"

 

TRADING UPDATE

Following on from >30% year-on-year growth in HY1 (at constant exchange
rate; against HY2020: growth of 3.2%), we have continued to see underlying
demand across all of our key markets with the Group's monthly revenues showing
consistent year-on-year growth, even as set against the record trading
recovery levels we saw in Q3 of FY2021.

 

We have seen very strong performances in particular from our distributor
trading in the UK, Europe and out of Taiwan, new light vehicle platform wins
in the USA and robust energy, tech and infrastructure growth in Hungary. In
conjunction with strong Q3 trading from our recent acquisition, TR Falcon,
these have more than offset continued short-term market disruption in some
segments.  Whilst we have continued to outperform light vehicle production in
the YTD period, semi-conductor chip shortages have held back volumes behind
prior year in Europe and the UK.  In addition, December floods in Malaysia,
coupled with specific sub-contractor transfer issues at a key health and home
customer, have temporarily reduced trading in the Asia region.

 

Supply chain challenges remain and although raw material and freight costs, as
well as lead times, are now stabilising across most of the world, these
continue to stand at historically high levels.  As a result of these ongoing
challenges, the business has continued to invest in inventory levels in HY2,
to ensure reliability of supply.  This uplift is expected to reverse as the
macroenvironment settles.

 

Our price increase programme continues to progress at pace, with the majority
of first phase negotiations now successfully completed and the remainder
expected to be concluded in the coming weeks.  Price negotiations form an
ongoing part of doing business, especially as inflationary pressures persist,
including the recent well-publicised increases to energy and salary costs
which we expect to impact pricing throughout the supply chain.

 

AREAS OF STRATEGIC FOCUS

·      Project Atlas

Project Atlas, a key driver of future growth and cost efficiencies continues
to progress, with a phased roll-out to our largest trading subsidiary
underway.  We look forward to providing further details of our progress in
due course.

 

·      Acquisitions

Our latest US acquisition, TR Falcon (August 2021) is integrating well and
contributing positively to the Group's results.  We are pleased to report
that our pipeline of targets continues to build in North America and beyond,
with a number of exciting opportunities at different stages of the process.

 

OUTLOOK

Despite the ongoing unpredictability in the macroeconomic environment, the
long-term fundamentals of our business model and strategy remain unchanged.
 Through continued focus on service levels and responsiveness we have
strengthened the Group's position in its established markets during this
challenging period and we continue to see exciting opportunities in high
growth/emerging technologies, including in the Electric Vehicle (EV) space,
where our secured order pipeline has never been stronger.  With strong
momentum in contract wins, new order pipeline and general activity levels, the
Board is confident in the Group's outlook, with its full year FY2022
expectations unchanged.

 

 

 

 Further enquiries please contact:
 Trifast plc
 Jonathan Shearman, Non-Executive Chair
 Mark Belton, Chief Executive Officer
 Clare Foster, Chief Financial Officer
 Tel: +44 (0) 1825 747630
 Email:
 corporate.enquiries@trifast.com (mailto:corporate.enquiries@trifast.com)

 Peel Hunt LLP (Stockbroker & financial adviser)
 Mike Bell
 Tel: +44 (0) 20 7418 8900

 TooleyStreet Communications, (IR & media relations)
 Fiona Tooley
 Tel: +44 (0)7785 703523
 Email: fiona@tooleystreet.com (mailto:fiona@tooleystreet.com)

 

 

 

 Editors' notes
 About Trifast plc

 Trifast (TR) is a leading international specialist in the design, engineering,
 manufacture, and distribution of high-quality industrial fastenings and
 Category 'C' components principally to major global assembly industries.

 TR supplies to c. 5,000 customers in c.75 countries across a wide range of
 industries, including Light vehicle, Heavy vehicle, Health & Home, Energy,
 Tech and Infrastructure (ET&I), General industrial and Distributors. As a
 full-service provider to multinational OEMs and Tier 1 companies spanning
 several sectors, TR delivers comprehensive support to its customers from
 concept design through to technical engineering consultancy, manufacturing,
 supply management and global logistics.

 TR employs c.1,300 people across 34 business locations within the UK, Asia,
 Europe, and the USA including seven high-volume, high-quality and
 cost-effective manufacturing sites and three technical & innovation
 centres across the world.

 "Innovation today to build a better tomorrow - Growing sustainably together"

 For more information, visit

 Investor website: www.trifast.com (http://www.trifast.com/)

 Commercial website: www.trfastenings.com (http://www.trfastenings.com/)

 LinkedIn: www.linkedin.com/company/tr-fastenings
 (http://www.linkedin.com/company/tr-fastenings)

 Twitter: www.twitter.com/trfastenings (http://www.twitter.com/trfastenings)

 Facebook: www.facebook.com/trfastenings (http://www.facebook.com/trfastenings)

 Note

 Trifast, TR and TR Fastenings are registered trademarks of the Company.

 LEI number: 213800WFIVE6RUK3CR22

 

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