REG - Trifast PLC - Half-year Financial Report
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RNS Number : 8236H Trifast PLC 18 November 2025
18 November 2025
TRIFAST PLC
HALF-YEAR 2026 FINANCIAL REPORT
Unaudited results for the six months ended 30 September 2025
Self-help actions keep us on-track to deliver full-year underlying earnings in
line with expectations.
Trifast plc ('Trifast' or the 'Group' or 'Company'; LSE: TRI.L), the
international specialist in the design, engineering, manufacture, and
distribution of high-quality engineered fastenings, today announces its
unaudited results for the six months ended 30 September 2025.
Iain Percival, CEO of Trifast, commented:
"In what has been another challenging macroeconomic period, with unprecedented
issues affecting the UK Automotive sector and the ongoing global impact of
tariffs, the company has delivered a resilient performance and further
strategic progress.
We have continued to rebalance the business into faster growing markets and
sectors, as well as investing in the change required to achieve further margin
improvement. Growth in Smart Infrastructure and Medical Equipment demonstrates
the potential of our design engineered solutions. Our global manufacturing
footprint, engineering expertise, and critical position in customers' supply
chains, continues to serve us well.
The strategic focus remains on the self-help levers within our control, of
which there are many. Looking ahead, despite external market challenges, we
remain confident in delivering our ambitions, including an EBIT margin target
of >10%.
My thanks to all Trifast employees for their continued efforts in delivering
our Recover, Rebuild, Resilience strategy and their consistent support for our
customers globally. "
Key financials
GAAP measures CER(2) CER(2) AER(2) AER(2) AER
HY2026 change HY2026 change HY2025
Operating profit £4.6m 21.1% £3.8m
Operating profit % 4.4% 110bps 3.3%
Profit before tax £2.5m 56.3% £1.6m
Profit before tax % 2.4% 100bps 1.4%
Diluted earnings per share 1.09p 10.1% 0.99p
Underlying measures
Revenue £105.9m (7.0)% £105.8m (7.1)% £113.9m
Gross profit % 28.9% 150bps 28.9% 150bps 27.4%
Underlying operating profit (UOP)(1) £6.6m (4.3)% £6.6m (4.3)% £6.9m
Underlying operating profit %(1) 6.2% 20bps 6.2% 20bps 6.0%
Underlying profit before tax(1) £4.6m 0.0% £4.6m 0.0% £4.6m
Underlying diluted earnings per share(1) 2.38p (19.0)% 2.94p
Adjusted net debt(3) £17.4m £2.0m £15.4m
Return on capital employed (ROCE)(1) 7.8% 150bps 6.3%
Interim dividend 0.60p 0.00p 0.60p
1. Before separately disclosed items (see notes 2, 6 and 7)
2. "CER" being Constant Exchange Rate, calculated by translating the HY2026
figures by the average HY2025 exchange rate and "AER" being Actual Rate. The
CER change compares CER HY2026 to AER HY2025.
3. Adjusted net debt is presented excluding the impact of IFRS16 Leases as
this is how the calculation is performed for the purposes of the Group's
banking facilities. Including right-of-use liabilities, net debt would
increase by £(20.5)m to £(37.9)m (HY2025: net debt would increase by
£(18.5)m to £(33.9)m.
4. A total foreign exchange loss of £1.1m was incurred with £1.0m of
unrealised exchange loss and £0.1m realised exchange losses.
Operational highlights
Consistent execution, improving growth foundations.
· Delivered solid H1 performance in challenging macroeconomic
environment.
· Good progress in key target end-markets, rebalancing away from
reliance on automotive.
· Continue to exit low margin customers and negotiate better
pricing and sourcing costs.
· Sustained focus on self-help actions driving performance and
creating new opportunities.
· Culture change and use of data are key components in achieving
growth ambitions.
· 2026 underlying earnings expectations unchanged, confident in the
medium-term outlook.
Margin improvements reflect the successful execution of strategic initiatives
and operational efficiencies.
· Gross profit margin improved 150 bps to 28.9%, despite 7.0%
revenue headwind.
· Underlying UOP margin improved from 6.0% in HY2025 to 6.2%.
· Excluding the impact of FX, the underlying UOP margin improved
from 6.5% in HY2025 to 7.2%.(4)
· Margin improvement and capital efficiency drove a 150 bps
increase in ROCE to 7.8%.
Liquidity remains strong, with over £73.0m of our £120.0m banking facilities
undrawn and leverage remaining below 1.0x.
Progress in our strategic end markets, regions, and operational efficiencies.
· In November, we received MISA approval to establish operations in
the Kingdom of Saudi Arabia. This expansion is underpinned by a Heads of Terms
Agreement with one of our major Smart Infrastructure customers and will be
delivered in phases from planned launch in Q3 FY26 launch.
· During the half year, we completed the set-up of our Shared
Service Centre in Hungary, serving as the central hub for key finance
operations across UK and Europe. This initiative is part of our broader
transformation programme aimed at enhancing operational efficiency,
standardising processes and improving service delivery across our finance
functions.
· We continue to invest in strategic digitalisation projects to
accelerate long-term value creation. Launch of our TR Shanghai manufacturing
capability as part of our China for China strategy.
· Exciting energy project on track for our Italy manufacturing
facility delivering green manufacturing credentials in 2026.
Presentation of HY2026 results
An in-person and virtual presentation for analysts and investors will be held
at 10:30 GMT at the offices of Peel Hunt. Please contact
companysecretariat@trifast.com (mailto:companysecretariat@trifast.com) for
details. The presentation and subsequent Q&A session will be webcast via
BRR Media. To register, please follow this link:
https://stream.brrmedia.co.uk/broadcast/68ee263d1c6d3400130c866b
(https://stream.brrmedia.co.uk/broadcast/68ee263d1c6d3400130c866b) . A replay
will be made available on the Trifast plc website.
The Company will also be presenting the HY26 results via the Investor Meet
Company platform on 20 November at 14:30 GMT. To register for the event,
please follow this link:
https://www.investormeetcompany.com/trifast-plc/register-investor
(https://www.investormeetcompany.com/trifast-plc/register-investor) .
Enquiries please contact:
Trifast plc
Iain Percival, Chief Executive Officer
Kate Ferguson, Chief Financial Officer
Christopher Morgan, Company Secretary
Office: +44 (0) 1825 747630
Email: corporate.enquiries@trifast.com
(mailto:corporate.enquiries@trifast.com)
Shareholders: companysecretariat@trifast.com
(mailto:companysecretariat@trifast.com)
Peel Hunt LLP (Stockbroker & financial adviser)
Mike Bell
Tel: +44 (0)20 7418 8900
Editors' notes
About Trifast plc (TR) (LSE Main listing: symbol: TRI)
In 2023, TR celebrated 50 years of business with a proud heritage of serving
customers with engineered fastening supply chain solutions. Specialising in
the design, engineering, manufacture, and distribution of high-quality
engineered fastenings and Category 'C' components principally for major global
assembly industries. As an international business we can provide customer
support from key regions in the UK & Ireland, Asia, Europe, and North
America. In addition to our service locations, we operate manufacturing
facilities focused on high volume cold forged fasteners and special parts. We
have also established Engineering & innovation centres to support R&D
and customer collaboration across the world. The Group supplies to customers
in c.65 countries across a wide range of industries, including Automotive,
Smart Infrastructure and Medical Equipment. As a full-service provider to
multinational OEMs and Tier 1 companies spanning several sectors, we deliver
comprehensive support to our customers across every requirement, from concept
design through to technical engineering consultancy, manufacturing, supply
management, and global logistics.
For more information, visit:
TRIFAST PLC TRI Stock | London Stock Exchange
(https://www.londonstockexchange.com/stock/TRI/trifast-plc/company-page)
website: www.trifast.com (http://www.trifast.com)
LinkedIn: www.linkedin.com/company/tr-fastenings
(http://www.linkedin.com/company/tr-fastenings)
X: www.x.com/trfastenings (http://www.x.com/trfastenings)
Facebook: www.facebook.com/trfastenings (http://www.facebook.com/trfastenings)
Trifast, TR and TR Fastenings are registered trademarks of the Company.
LEI number: 213800WFIVE6RWK3CR22
Forward-looking statements
This announcement contains certain forward-looking statements. These reflect
the knowledge and information available to the Company during the preparation
and up to the publication of this document. By their very nature, these
statements depend upon circumstances and relate to events that may occur in
the future thereby involving a degree of uncertainty. Therefore, nothing in
this document should be construed as a profit forecast by the Company.
TRIFAST PLC
HALF-YEARLY FINANCIAL REPORT
Unaudited results for the six months ended 30 September 2025
BUSINESS REVIEW
Unless stated otherwise, current year comparisons with prior year are
calculated at constant currency (CER) and where we refer to 'underlying,' this
is defined as being before separately disclosed items (see note 2). CER
calculations have been calculated by translating the HY2026 figures by the
average HY2025 exchange rate.
Key financials
GAAP measures CER(2) CER(2) AER(2) AER(2) AER
HY2026 change HY2026 change HY2025
Operating profit £4.6m 21.1% £3.8m
Operating profit % 4.4% 110bps 3.3%
Profit before tax £2.5m 56.3% £1.6m
Profit before tax % 2.4% 100bps 1.4%
Diluted earnings per share 1.09p 10.1% 0.99p
Underlying measures
Revenue £105.9m (7.0)% £105.8m (7.1)% £113.9m
Gross profit % 28.9% 150bps 28.9% 150bps 27.4%
Underlying operating profit (UOP)(1) £6.6m (4.3)% £6.6m (4.3)% £6.9m
Underlying operating profit %(1) 6.2% 20bps 6.2% 20bps 6.0%
Underlying profit before tax(1) £4.6m 0.0% £4.6m 0.0% £4.6m
Underlying diluted earnings per share(1) 2.38p (19.0)% 2.94p
Adjusted net debt(3) £17.4m £2.0m £15.4m
Return on capital employed (ROCE)(1) 7.8% 150bps 6.3%
Interim dividend 0.60p 0.00p 0.60p
1. Before separately disclosed items (see notes 2, 6 and 7)
2. "CER" being Constant Exchange Rate, calculated by translating the HY2026
figures by the average HY2025 exchange rate and "AER" being Actual Exchange
Rate
3. Adjusted net debt is presented excluding the impact of IFRS16 Leases as
this is how the calculation is performed for the purposes of the Group's
banking facilities. Including right-of-use liabilities, net debt would
increase by £(20.5)m to £(37.9)m (HY2025: net debt would increase by
£(18.5)m to £(33.9)m).
Group performance
Revenue declined 7.0% to £105.9m compared to HY2025, with an overall softer
demand environment created by ongoing tariff disruption, compounded by
unprecedented challenges in the UK Automotive sector, partially offset by
growth in Smart Infrastructure, especially in North America.
Encouragingly, underlying gross margin improved by 150 basis points to 28.9%,
with margin management being the most significant contributor and underlying
UOP margin improved from 6.0% in HY2025 to 6.2%. Excluding the impact of FX in
UOP, the underlying UOP margin improved from 6.5% in H1 FY25 to 7.2%.
We were adversely affected by higher FX movements (c. £0.6m) compared to
HY2025 as a result of the significant weakening of the USD following
Liberation Day, although some improvement and internal actions have reduced
the initial impact.
We continue to benefit from the cost savings achieved through our operational
improvement programmes in FY25 including a 10% reduction in non-operating
headcount and the successful consolidation of our UK operations into the
National Distribution Centre in the West Midlands.
Underlying profit before tax remained stable at £4.6m (HY2025: £4.6m) due to
a £0.3m decline in UOP, notwithstanding the UOP margin improvement, offset by
a £0.3m reduction in net finance costs due to the improvement in interest
rates.
Pre IFRS 16 net debt was c. £17.4m at 30 September 2025 (HY 2025: £15.4m),
an increase of £2.0m due to higher cash outflows for our strategic investment
in digital and technology projects and the payment of the FY25 staff bonuses.
Our banking covenant leverage ratio remains strong at 0.9x (HY2025: 0.9x), and
we have £73.5m of our £120.0m banking facilities undrawn (FY2025: £77.2m).
Our working capital focus continues to be a priority. there was a £5.7m
reduction in receivables, offset by a £0.9m reduction in creditors, £2.5m
increase in inventory including c.£1.7m additional tariff impact, and a
£1.2m reduction in provisions resulting in an adverse impact of £1.1m
(HY2025: £3.3m) to our operating cashflow.
Capital expenditure increased to £3.4m (HY2025: £1.1m) mainly due to
investment in digital and technology strategic projects.
Profit before tax increased by £0.9m to £2.5m (HY2025: £1.6m) primarily due
to lower one-off separately disclosed items and includes: acquired intangible
amortisation £0.9m, restructuring costs and transformation costs £1.1m.
Regional performance
Region CER HY2026 AER HY2025 CER Change AER HY2026 AER Change
(Reallocation)
UK Sales 32.5 36.7 -11.4% 32.5 -11.4%
UOP 1.3 1.0 30.0% 1.3 30.0%
UOP% 4.0% 2.7% 130 bps 4.0% 130 bps
Europe Sales 36.6 39.8 -8.0% 37.4 -6.0%
UOP 3.1 3.0 3.3% 3.1 3.3%
UOP% 8.5% 7.6% 90 bps 8.3% 70 bps
North America Sales 17.6 16.3 8.0% 16.9 3.7%
UOP 1.8 1.6 12.5% 1.8 12.5%
UOP% 10.2% 9.8% 40 bps 10.7% 90 bps
Asia Sales 25.6 27.1 -5.5% 25.4 -6.3%
UOP 2.7 4.3 -37.2% 2.7 -37.2%
UOP% 10.4% 16.0% -560 bps 10.6% -540 bps
Central Sales - 6.4 - 6.0 6.7% - 6.4 6.7%
UOP (Central costs) - 2.3 - 3.0 -23.3% - 2.3 -23.3%
Group Sales 105.9 113.9 -7.0% 105.8 -7.1%
UOP 6.6 6.9 -4.3% 6.6 -4.3%
UOP% 6.2% 6.1% 10 bps 6.2% 10 bps
Note 1 - Regional sales include intercompany.
Note 2 - Central sales relate to intercompany eliminations.
Reallocation of FY2025 UOP
We have reallocated the HY2025 regional and central results to present
management charges on a like-for-like basis with HY2026 as we are recharging
more from Central to the regions as is appropriate.
Region AER HY2025 AER HY2025 Change
(Reallocation) (Original)
UK Sales 36.7 36.7 0.0%
UOP 1.0 1.5 -33.3%
UOP% 2.7% 4.1% 140 bps
Europe Sales 39.8 39.8 0.0%
UOP 3.0 3.4 -11.8%
UOP% 7.6% 8.5% 90 bps
North America Sales 16.3 16.3 0.0%
UOP 1.6 1.7 -5.9%
UOP% 9.8% 10.4% 60 bps
Asia Sales 27.1 27.1 0.0%
UOP 4.3 4.5 -4.4%
UOP% 16.0% 16.6% 60 bps
Central Sales - 6.0 - 6.0 0.0%
UOP (Central costs) - 3.0 - 4.2 -28.6%
UK & Ireland
Revenue declined 11.4% to £32.5m (HY2025: £36.7m). An overall subdued
backdrop, reflecting both global and UK macroeconomic headwinds was compounded
by the impact of cyber-attacks affecting one large OEM in particular.
The impact of increased National Insurance Contributions and minimum wage
increases from 6 April 2025, contributed an additional £0.5m to operating
costs.
Efficiencies from the consolidation of the NDC have been realised but the
region has also incurred higher premises costs following the relocation of a
UK subsidiary's warehouse (Precision Technology Supplies Ltd). The region has
done well to counter the impact of adverse stock movements due to aging of
automotive stock (lower demand) through Excess & Obsolete inventory
initiatives and improve their gross profit margins through their commitment to
margin management.
UOP was £1.3m (HY2025 reallocated £1.0m) with margins improving from 2.7% to
4.0%.
Europe
Revenue declined 8.0% to £36.6m (HY2025: £39.8m), driven by softer
automotive volumes, the strategic exit of c. £3m annualised low margin
business, the strategic transition of customers' white goods business out of
Europe into Turkey and the OEM cyber-attack.
Improvement in gross profit margins delivered through disciplined commitment
to margin management and utilisation improvements in the manufacturing
operation. Distribution costs were lower following an exercise to optimise
in-bound freight and through robust control of operational costs to address
the decline in revenue.
UOP was £3.1m (HY2025 reallocated: £3.0m), however margins improved from
7.6% to 8.5%.
North America
Revenue increased 8.0% to £17.6m (HY2025: £16.3m) with outstanding growth in
Smart Infrastructure (increase of 15%) and Medical Equipment (increase of
32%). Following the initial tariff shock, automotive volumes have stabilised
in the region. Higher revenues were reported partly due to the tariff
surcharges on all volumes, albeit this also had a dilutive impact on UOP
margins.
There were higher labour and carriage costs associated with tariff
administration; however, the higher revenues and focussed margin management
has offset the operating cost increases.
As a result, UOP increased 12.5% from £1.6m (reallocated) to £1.8m with
margins improving from 9.8% to 10.2%.
Asia
Revenues have decreased to £25.6.m (HY2025: £27.1m), with lower volumes due
to tariff uncertainty, increased competition on a non-core sector customer's
market share driving lower production volumes compared to HY2025 and strong
competition in China's EV market impacting volumes.
The weakened USD following liberation day, resulted in unrealised exchange
losses in UOP due to the revaluation of USD denominated assets. We have
executed plans to reduce the value of USD assets in Asia through sale of
currency and restructuring.
UOP reduced by £1.6m to £2.7m (HY2025 reallocated: £4.3m), with £1.1m
reported in unrealised FX losses (HY2025: losses of £0.3m). The revenue
decline and the FX impact resulted in the decline in margins from 16.0% to
10.4%.
Central Costs
Decrease in central costs follows FY2025 operational improvement programme
savings and other cost saving initiatives.
Net financing costs (AER)
Net financing costs have reduced to £2.0m (HY2025: £2.2m) due to lower
interest rates applied to our RCF and UKEF - EDG facility drawdowns.
Taxation (AER)
The increase in the underlying effective tax rate (UETR) to 29.3% (HY2025:
14.5%) and the effective tax rate (ETR) to 42.3% (HY2025: 14.5%) was
principally due to the non-recognition of in year losses in the UK region. If
current period UK tax losses were included as a deferred tax asset, the ETR
would be 29.6%.
Earnings per share (AER)
The decrease in underlying profit before tax supplemented by an increase in
our UETR, has reduced the underlying diluted EPS by 19.0% to 2.38p (HY2025:
2.94p). The diluted earnings per share increased to 1.09p (HY2025: 1.03p) due
to lower one-off separately disclosed items offset by the higher ETR.
Dividend
The Company has declared an interim dividend of 0.60p (HY2025: 0.60p) which will be paid on 10 April 2026 to members on the register as at 6 March 2026. We continue to consider that an appropriate level of dividend cover is in the range of 3.0x to 4.0x.
Return on Capital Employed (AER)
As at 30 September 2025, the Group's shareholders' equity increased to
£122.7m (FY2025: £121.1m). The £1.6m increase reflects the impact of the
profit for the period of £1.4m, a dividend charge of £(1.6)m, a net movement
in share-based payments of £0.6m and a foreign exchange reserve gain of
£1.2m.
Over this lower asset base and due to repayment of borrowings during the
period, our ROCE has increased to 7.8% (FY2025: 6.3%).
Adjusted net debt (AER)
The Group's adjusted net debt has increased by £2.0m to £17.4m (FY2025:
£15.4m).
Working capital remains a challenge due to supply chain disruption, however,
continues to be a priority. Against FY2025 there was a £5.7m reduction in
receivables, offset by a £0.9m reduction in creditors, £2.5m increase in
inventory including c.£1.7m additional tariff impact, and a £1.2m reduction
in provisions. Capital expenditure in the period amounted to £3.4m. Interest
paid was £2.0m (excluding IFRS16 interest) due to lower interest rates during
the period.
Including the impact of IFRS16 Leases, the Group's net debt position decreased
by £0.8m to £37.9m (FY2025: £38.7m). IFRS16 Leases were £20.5m (FY2025:
£21.3m).
Other key balance sheet movements
Right-of-use assets, Property, plant and equipment and intangibles have
remained static at £72.3m (FY2025: £72.3m) as a result of the depreciation
and amortisation charge during the period, offset by additions and the effects
of movement on foreign exchange during the period.
Trade and other receivables decreased by £2.8m to £52.5m (FY2025: £55.3m)
due to lower sales and improved collections. The material reduction in our
trade and other creditors, notwithstanding lower inventory and trade and other
receivables (see adjusted net debt) has seen working capital as a % of sales
increase to 41.0% (FY2025: 39.4%). We expect working capital as a percentage
of sales to improve in H2 as we adjust supply chains to balance lower demand
in automotive.
Other interest-bearing loans and borrowings have increased £4.9m to £46.5m
(FY2025: £41.6m), net of unamortised loan arrangement fees.
Trade and other payables decreased by £0.3m to £34.3m (FY2025: £34.6m).
Provisions reduced by £1.2m to £1.8m (FY2025: £3.0m) principally on account
of the utilisation of the restructuring and related charges provisions during
HY2026.
Acquisitions
We continue our acquisition aspirations, by exploring opportunities for
on/near-shoring manufacturing and supply chain capabilities to help deliver
economic and environmental benefits in the future.
People
The Board would like to acknowledge and thank the teams around the globe who,
in challenging times, continue to work in partnership with commitment and
focus to deliver the quality of service and supply that our customers expect.
Outlook
The Board's current full year underlying earnings expectations remain
unchanged despite external market challenges. Our strategic focus continues to
be on the self-help levers within our control, particularly those driving
working capital improvements and margin enhancement.
Looking ahead, we remain confident in delivering our medium-term targets,
including achieving an underlying UOP margin of greater than 10%. This
confidence is underpinned by the substantial groundwork already completed to
make Trifast a more efficient, professional, and data-led organisation.
Risks and uncertainties
The Directors do not consider that the principal risks and uncertainties of
the Group have changed since the publication in July 2025 of the Group's
Annual Report for the year ended 31 March 2025, a copy of which can be found
on the Company website www.trifast.com
No system can fully eliminate risk and therefore the understanding of
operational risk is central to the management process within the Group. We
continue to review and analyse both existing and emerging risks and work with
our business teams to understand the impact of internal and external changes,
and the risks and opportunities that they present. This work is supported by
the development of our internal audit function and reviewed by the Audit &
Risk Committee meetings chaired by our Senior Independent Non-Executive
Director.
A copy of the Group's Annual Report for the year ended 31 March 2025 can be
found on the website www.trifast.com (http://www.trifast.com)
As with all businesses, the Group faces risks, with some not wholly within its
control, which could have a material impact on the Group, and may affect its
performance with actual results becoming materially different from both
forecast and historic results. The macroeconomic climate is still under
pressure, and we continue to remain vigilant for any indications that could
adversely impact expected results going forward.
The long-term success of the Group depends on the ongoing review, assessment,
and management of the key business risks it faces.
Trifast plc - responsibility statement
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority; and
· the interim management report includes a fair review of the information required by:
a. DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being
an indication of important events that have occurred during the first six
months of the financial year and their impact on the condensed set of
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
b. DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
Iain Percival Kate Ferguson
Chief Executive Officer Chief Financial Officer
18 November 2025 18 November 2025
Condensed consolidated interim income statement
Unaudited results for the six months ended 30 September 2025
Six months Six months Year
Notes ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Continuing operations
Revenue 3 105,848 113,896 223,466
Cost of sales (75,260) (82,687) (160,114)
Gross profit 30,588 31,209 63,352
Other operating income 376 260 766
Distribution expenses (1,403) (3,751) (7,869)
Administrative expenses before separately disclosed items (22,992) (20,852) (41,572)
Acquired intangible amortisation 2 (866) (867) (1,731)
Restructuring and transformation costs 2 (1,149) (1,435) (2,575)
Impairment of customer receivable on administration 2 - (1,007) (1,006)
Facilitation payment fraud 2 - - (384)
Profit on disposal of a subsidiary 2 - 243 247
Total administrative expenses (25,007) (23,918) (47,021)
Share of gain of associate accounted for using the equity method 21 - 199
Operating profit 4,575 3,800 9,427
Financial income 75 147 275
Financial expenses (2,112) (2,376) (4,774)
Net financing costs 3 (2,037) (2,229) (4,499)
Profit before tax 3 2,538 1,571 4,928
Taxation 4 (1,074) (228) (3,888)
Profit for the period 1,040
(attributable to equity shareholders of the Parent Company) 1,464 1,343
Earnings per share
Basic 6 1.09p 0.99p 0.77p
Diluted 6 1.09p 0.99p 0.77p
Condensed consolidated interim statement of comprehensive income
Unaudited results for the six months ended 30 September 2025
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Profit for the period 1,464 1,343 1,040
Other comprehensive income/(expense) for the period:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 2,453 (1,706) (2,024)
(Loss)/gain on a hedge of a net investment taken to equity (1,277) 806 675
Other comprehensive income/(expense) recognised for the period 1,176 (900) (1,349)
Total comprehensive income/(expense) recognised for the period 2,640 443 (309)
(attributable to equity shareholders of the parent company)
Condensed consolidated interim statement of changes in equity
Unaudited results for the six months ended 30 September 2025
Share Share Merger reserve Own Translation Retained Total
£000
capital premium shares held reserve earnings equity
£000 £000 £000 £000 £000 £000
Balance at 1 April 2025 6,806 22,537 16,328 (1,833) 9,147 68,095 121,080
Total comprehensive income for the period:
Profit for the period - - - - - 1,464 1,464
Other comprehensive income for the period - - - - 1,176 - 1,176
Total comprehensive income for the period - - - - 1,176 1,464 2,640
Transactions with owners, recorded directly
in equity:
Share-based payment transactions - - - - - 562 562
(net of tax)
Dividends (note 5) - - - - - (1,620) (1,620)
Total transactions with owners - - - - - (1,058) (1,058)
Balance at 30 September 2025 6,806 22,537 16,328 (1,833) 10,323 68,501 122,662
Share Share Merger reserve Own Translation Retained Total
£000
capital premium shares held reserve earnings equity
£000 £000 £000 £000 £000 £000
Balance at 1 April 2024 6,806 22,537 16,328 (2,194) 10,496 70,205 124,178
Total comprehensive income for the period:
Profit for the period - - - - - 1,343 1,343
Other comprehensive expense for the period - - - - (900) - (900)
Total comprehensive (expense)/income for the period - - - - (900) 1,343 443
Transactions with owners, recorded directly
in equity:
Share-based payment transactions - - - - - (380) (380)
(net of tax)
Movement in own shares held - - - 155 - (155) -
Dividends (note 5) - - - - - (2,426) (2,426)
Total transactions with owners - - - 155 - (2,961) (2,806)
Balance at 30 September 2024 6,806 22,537 16,328 (2,039) 9,596 68,587 121,815
Condensed consolidated interim statement of financial position
Unaudited results for the six months ended 30 September 2025
Notes 30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Non-current assets
Property, plant, and equipment 19,983 18,356 18,593
Right-of-use assets 19,251 16,401 20,283
Intangible assets 33,066 34,653 33,397
Investment in joint venture 374 157 353
Deferred tax assets 3,505 4,192 5,919
Total non-current assets 76,179 73,759 78,545
Current assets
Inventories 74,211 74,497 70,912
Trade and other receivables 52,492 55,223 55,288
Cash and cash equivalents 7 29,106 25,072 24,258
Total current assets 155,809 154,792 150,458
Total assets 3 231,988 228,551 229,003
Current liabilities
Trade and other payables 34,305 40,004 34,589
Right-of-use liabilities 7 2,429 3,661 2,805
Provisions 453 1,421 1,328
Tax payable 1,993 420 2,443
Dividends payable 1,620 1,618 -
Total current liabilities 40,800 47,124 41,165
Non-current liabilities
Other interest-bearing loans and borrowings 7,12 46,530 40,432 41,627
Right-of-use liabilities 7 18,059 14,880 18,513
Provisions 1,305 1,543 1,623
Deferred tax liabilities 2,055 2,102 4,452
Other Payables 577 655 543
Total non-current liabilities 68,526 59,612 66,758
Total liabilities 3 109,326 106,736 107,923
Net assets 122,662 121,815 121,080
Equity
Share capital 6,806 6,806 6,806
Share premium 22,537 22,537 22,537
Merger reserve 16,328 16,328 16,328
Own shares held 8 (1,833) (2,039) (1,833)
Translation reserve 10,323 9,596 9,147
Retained earnings 68,501 68,587 68,095
Total equity 122,662 121,815 121,080
Condensed consolidated interim statement of cash flows
Unaudited results for the six months ended 30 September 2025
Notes Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Cash flows from operating activities
Profit/(loss) for the period 1,464 1,343 (1,040)
Adjustments for:
Depreciation, amortisation, and impairment 2,682 2,786 5,386
Right-of-use asset depreciation 1,608 1,727 3,487
Unrealised foreign currency (gain)/loss (1,348) 60 90
Financial income (75) (147) (275)
Financial expense (excluding right-of-use liabilities) 1,564 1,970 3,758
Right-of-use liabilities' financial expense 548 406 1,016
Share of gain of associate accounted for using the equity method (21) - (199)
(Gain)/loss on sale of property, plant & equipment, intangibles (38) 9 (26)
Equity settled share-based payment transactions 562 (380) 426
Facilitation payment fraud - - 384
Gain on disposal of a subsidiary - (243) (247)
Taxation charge 1,074 228 3,888
Operating cash inflow before changes in working capital and provisions 8,020 7,759 18,728
Change in trade and other receivables 5,745 2,647 (313)
Change in inventories (2,504) (2,344) 1,629
Change in trade and other payables (884) 4,001 49
Change in provisions (1,222) (1,040) (1,030)
Cash generated in operations 9,155 11,023 19,063
Tax paid (1,377) (1,591) (2,168)
Net cash generated in operating activities 7,778 9,432 16,895
Cash flows from investing activities
Proceeds from sale of property, plant & equipment 49 175 292
Proceeds from sale of assets classified as held for - 699 632
sale
Interest received 75 157 832
Acquisition of property, plant and equipment, and intangibles (3,419) (1,124) (3,422)
Net cash used in investing activities (3,295) (93) (2,215)
Cash flows from financing activities
Proceeds from borrowings 4,077 - 629
Repayment of right-of-use liabilities (1,489) (1,571) (4,404)
Dividends paid (810) (809) (2,426)
Interest and charges paid (1,897) (2,430) (4,672)
Net cash used in financing activities (119) (4,810) (10,873)
Net change in cash and cash equivalents 4,364 4,529 3,807
Cash and cash equivalents at 1 April 24,258 20,884 20,884
Effect of exchange rate fluctuations on cash held 484 (342) (433)
Cash and cash equivalents at end of period 7 29,106 25,071 24,258
NOTES TO THE 2024 HALF-YEARLY FINANCIAL REPORT
Unaudited results for the six months ended 30 September 2025
1. Basis of preparation
These condensed consolidated interim financial statements have been prepared
in accordance with the Disclosure and Transparency Rules (DTR) of the
Financial Conduct Authority and UK-adopted International Accounting Standard
("IAS") 34: Interim Financial Reporting. They do not include all the
information required for full annual financial statements and should be read
in conjunction with the consolidated financial statements of the Group as at,
and for, the year ended 31 March 2025. The annual financial statements of the
Group are prepared in accordance with UK adopted International Accounting
Standards and with the requirements of the Companies Act 2006 as applicable to
companies reporting under those standards.
This statement does not comprise full financial statements within the meaning
of Section 495 and 496 of the Companies Act 2006. The statement is unaudited.
The comparative figures for the financial year ended 31 March 2025 are not the
Company's statutory accounts for that financial year and have been extracted
from the full Annual Report and Accounts for that financial year. Those
accounts have been reported on by the Company's auditor and delivered to the
Registrar of Companies. The Report of the Auditors was (i) unqualified, (ii)
did not include a reference to any matters to which the auditor drew attention
by way of emphasis without qualifying their Report, and (iii) did not contain
a statement under section 498 (2) or (3) of the Companies Act 2006.
These condensed consolidated interim financial statements have been prepared
on the basis of accounting policies set out in the full Annual Report and
Accounts for the year ended 31 March 2025, except the following amendments
which apply for the first time in HY2026, but, they do not have a material
impact on these condensed consolidated interim financial statements.
The following amendments are effective for accounting periods beginning on or
after 1 January 2024:
· IAS 1 Presentation of Financial Statements (Amendment -
Classification of liabilities as current or non-current)
· IAS 1 Presentation of Financial Statements (Amendment -
Non-current liabilities with covenants)
· IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments -
Disclosure (Amendment - Supplier Finance Arrangements)
· IFRS 16 Leases (Amendment - Lease Liability in a Sale and
Leaseback)
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the
accompanying Business Review. The financial position of the Group, its cash
flows, liquidity position and borrowing facilities are also described in the
same report. In addition, note 26 to the Group's previously published
financial statements for the year ended 31 March 2025 includes the Group's
objectives, policies and processes for managing its capital; its financial
risk management objectives; details of its financial instruments and hedging
activities; and its exposures to credit risk and liquidity risk.
Current trading and forecasts show that the Group will continue to generate
positive EBITDA and generate cash. The banking facilities and covenants
(leverage and interest cover) that are in place provide appropriate headroom
against forecasts based on the current outlook. As such the Directors do not
consider there to be material uncertainties relating to events or conditions
that may be relevant to the next 12 months from signing of the half-yearly
financial report, which cast doubt on the going concern status. This is also
the case after performing sensitivity analysis, reverse stress testing
scenarios to break point for the covenants and understanding what this would
equate to either increasing net debt or reducing EBITDA. Thus, the Directors
have a reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future and hence they
continue to adopt the going concern basis of accounting in preparing the
half-yearly financial report.
Estimates and judgements
The preparation of financial statements in conformity with IFRSs requires
management to make estimates, judgements and assumptions that affect the
application of policies and reported amounts of assets and liabilities,
income, and expenses. The estimates and associated assumptions take account of
the circumstances and facts at the period end, historical experience of
similar situations and other factors that are believed to be reasonable and
relevant, the results which form the basis of making the judgements about
carrying values of assets and liabilities that are not readily available from
other sources. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty include those disclosed
in the consolidated financial statements for the year ended 31 March 2025.
1. Basis of preparation……continued
No other key judgements have been made, other than those involving
estimations. The key sources of estimation uncertainty are inventory valuation
and recoverability of goodwill.
The methodology for calculating the inventory provision has remained
consistent with year-end. Inventories are stated at the lower of cost and net
realisable value with a provision being made for obsolete and slow-moving
items. Initially, management makes a judgement on whether an item of inventory
should be classified as standard or customer specific. This classification
then largely determines when a provision is recognised. Management then
estimates the net realisable value of the stock for each individual
classification. In most circumstances, a provision is made earlier for
customer specific stock (compared to standard) because it generally carries a
greater risk of becoming obsolete or slow moving given the fastenings are
designed specifically for an individual customer.
The key sensitivity to the carrying amount of customer-specific inventory
relates to the future demand levels for specific products stocked for
individual customers. In the event that an individual customer's demand for
products specific to them unexpectedly reduced, the Company might be required
to increase the inventory provision. Although one customer taking such action
is unlikely to result in a material adjustment, multiple customers taking such
action over a short timescale could result in a material adjustment. The range
of possible outcomes includes a write off of the carrying amount at 30
September 2025, to a write back of the customer-specific inventory provision
at period end (HY2026: £5.6m; HY2025: £6.2m; FY2025: £5.6m).
The carrying amount of goodwill as at 30 September 2025, was £22.2m (HY2025:
£22.3m; FY2025: £22.5m). The movement in the goodwill balance is due to
foreign exchange differences. An impairment assessment was carried out and no
indicators of impairment were identified as of 30 September 2025.
2. Underlying profit before tax and separately disclosed items
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Underlying profit before tax 4,553 4,637 10,377
Separately disclosed items within administrative expenses:
Acquired intangible amortisation (866) (867) (1,731)
Facilitation payment fraud - - (384)
Restructuring and transformation cost (1,149) (1,435) (2,575)
Impairment of customer receivable on administration - (1,007) (1,006)
Profit on disposal of a subsidiary - 243 247
Profit before tax 2,538 1,571 4,928
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Underlying EBITDA 10,014 10,512 22,018
Separately disclosed items within administrative expenses:
Restructuring and transformation cost (1,149) (1,435) (2,575)
Facilitation payment fraud - - (384)
Impairment of customer receivable on administration - (1,007) (1,006)
Profit on disposal of a subsidiary - 243 247
EBITDA 8,865 8,313 14,314
Acquired intangible amortisation (866) (867) (1,731)
Depreciation (including right-of-use depreciation) and non-acquired (3,424) (3,646) (7,904)
amortisation
Operating profit 4,575 3,800 4,630
Consistent with prior periods, management feel it is appropriate to remove
separately disclosed items as included above to allow the reader of the
accounts to understand the underlying trading performance of the Group.
Management use judgement in assessing which items, due to their size or
incidence, should be disclosed as separately disclosed items. This is
consistent with the way financial information is presented to the Board.
Further reconciliations of underlying measures to IFRS measures and the cash
flow impact of separately disclosed items can be found in note 7.
2. Underlying profit before tax and separately disclosed items……continued
Event driven items
Restructuring and transformation costs of £1.1m are charges incurred in
relation the Key strategic initiatives (Margin management, Operational
efficiencies, Focussed growth and Organisation effectiveness). Primarily
includes costs for external consultants hired for transformation activities,
redundancies, recruitment costs for senior management team and other costs
related to the key strategic initiatives. We have excluded these costs from
our underlying results, to reflect the size and one-off nature of these costs
consistent with the Group's policy on separately disclosed items.
Recurring items
Acquired intangible amortisation has remained in line with HY2026. Intangible
amortisation relating to acquisitions has been separately disclosed so as to
present the trading performance of the respective entities with a charge on a
comparable basis.
3. Geographical operating segments
The Group is comprised of the following main geographical operating segments:
· UK & Ireland
· Europe: includes Norway, Sweden, Germany, Hungary, Ireland, Italy, Holland, Spain, and Poland
· USA: includes USA and Mexico
· Asia: includes Malaysia, China, Singapore, Taiwan, Thailand, Philippines, and India
In presenting information on the basis of geographical operating segments,
segment revenue, segment underlying operating profit and segment assets are
based on the geographical location of our entities across the world and are
consolidated into the four distinct geographical regions, which the Executive
Leadership Team (the 'ELT') uses to monitor and assess the Group. Interest is
reported on a net basis rather than gross as this is how it is presented to
the Chief Operating Decision Maker (the ELT).
Segment revenue and results under the primary reporting format for the six
months ended 30 September 2025 and 2024 are disclosed in the table below:
September 2025 UK & Ireland Central costs, Total
£000 Europe USA Asia assets and £000
£000 £000 £000 liabilities
£000
Revenue*
Revenue from external customers 31,070 36,668 16,330 21,780 - 105,848
Inter segment revenue 1,461 760 569 3,644 - 6,434
Total revenue 32,531 37,428 16,899 25,424 - 112,282
Underlying operating profit (see note 7) 1,264 3,153 1,825 2,654 (2,305) 6,591
Net financing costs (201) (354) (358) 195 (1,319) (2,037)
Underlying profit before tax 1,063 2,799 1,467 2,849 (3,624) 4,555
Separately disclosed items (see note 2) (611) (791) (182) - (432) (2,015)
Profit before tax 452 2,008 1,285 2,849 (4,056) 2,538
Specific disclosure items
Depreciation and amortisation (1,215) (1,632) (398) (714) (331) (4,290)
Assets and liabilities
Non-current asset additions(1) 261 2,363 1,073 107 - 3,805
Segment assets 68,315 70,408 27,688 57,373 8,204 231,988
Segment liabilities (21,343) (19,151) (4,965) (10,466) (53,401) (109,326)
3. Geographical operating segments……continued
UK & Ireland Central costs, Total
September 2024 £000 Europe USA Asia assets and £000
£000 £000 £000 liabilities
£000
Revenue*
Revenue from external customers 35,046 39,054 16,276 23,520 - 113,896
Inter segment revenue 1,613 727 35 3,604 - 5,979
Total revenue 36,659 39,781 16,311 27,124 - 119,875
Underlying operating profit (see note 7) 1,505 3,355 1,669 4,541 (4,204) 6,866
Net financing costs 84 (486) (447) 248 (1,628) (2,229)
Underlying profit before tax 1,589 2,869 1,222 4,789 (5,832) 4,637
Separately disclosed items (see note 2) (359) (1,515) (210) (18) (964) (3,066)
Profit before tax 1,230 1,354 1,012 4,771 (6,796) 1,571
Specific disclosure items
Depreciation and amortisation (1,237) (1,695) (390) (773) (418) (4,513)
Assets and liabilities
Non-current asset additions(1) 506 1,912 86 312 194 3,010
Non-current assets 23,375 14,815 4,517 20,058 6,802 69,567
Segment assets 70,825 66,946 22,874 57,049 10,857 228,551
* Revenue is derived from the manufacture and logistical supply of industrial
fasteners and category 'C' components.
1. Includes additions to IFRS 16 leases.
4. Taxation
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Current tax on income for the period
UK tax - - 65
Foreign tax 1,112 271 3,259
Deferred tax income for the period (38) (44) 1,248
Adjustments in respect of prior years - 1 (684)
1,074 228 3,888
During the prior half-year, the relatively low ETR mainly reflected that c.90%
of Group profits were subject to regional ETRs of 13%-23%, together with
consolidation loss adjustments. A changed geographic distribution in the
current half-year means c.85% of profits are taxed at higher regional rates of
19%-25%. The current half-year ETR of 42.3% exceeds our expected 20%-25% range
because current year UK losses were not recognised as a DTA; recognition of
that DTA would reduce the ETR to 29.6%.
The Deferred tax asset was £3.5m (FY2025: £5.9m) and Deferred tax liability
£2.1m (FY2025: £4.5m).
5. Dividends
The dividend payable of £1.6m represents the final dividend for the year ended 31 March 2025 which was approved by Shareholders at the AGM on 11 September 2025 and paid on 10 October 2025 to members on the Register on 12 September 2025. The Company has declared an HY2026 interim dividend of 0.60p (HY2025: 0.60p) which will be paid on 10 April 2026 to Shareholders on the Register as at 6 March 2026.
6. Earnings per share
The calculation of earnings per 5 pence ordinary share is based on profit for
the period after taxation and the weighted average number of shares in the
period of 134,974,661 (net of own shares held) (HY2025: 134,967,813, FY2025:
134,959,632).
The calculation of the fully diluted earnings per 5 pence ordinary share is
based on profit for the period after taxation. In accordance with IAS 33 the
weighted average number of shares in the period has been adjusted to take
account of the effects of all dilutive potential ordinary shares (net of own
shares held). The number of shares used in the calculation amount to
135,017,501 (HY2025: 134,967,813 FY2025: 134,959,632).
The underlying diluted earnings per share, which in the Directors' opinion
best reflects the underlying performance of the Group, is detailed below:
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Profit /(loss) after tax for the period 1,464 1,343 1,040
Separately disclosed items (see note 2) 2,015 3,066 5,449
Tax charge on adjusted items above (237) (444) (678)
Underlying profit after tax 3,219 3,965 5,811
Basic EPS 1.09p 0.99p 0.77p
Diluted EPS 1.09p 0.99p 0.77p
Underlying diluted EPS 2.38p 2.94p 4.31p
7. Alternative Performance Measure
The half-yearly financial report includes both IFRS measures and Alternative
Performance Measures (APMs), the latter of which are considered by management
to better allow the readers of the accounts to understand the underlying
performance of the Group. A number of these APMs are used by management to
measure the KPIs of the business (see the Business Review) and are therefore
aligned to the Group's strategic aims. They are also used at Board level to
monitor financial performance throughout the year.
The APMs used in the half-yearly financial report (including the basis of
calculation, assumptions, use and relevance) are detailed in note 2
(underlying profit before tax, EBITDA, and underlying EBITDA) and below.
· Underlying figures
The Group believes that underlying measures provide additional guidance to
statutory measures to help understand the underlying trading performance of
the business during the financial period. The term 'underlying' is not defined
under Adopted IFRS. It is a measure that is used by management to assess the
underlying performance of the business internally and is not intended to be a
substitute measure for Adopted IFRSs' GAAP measures.
It should be noted that the definitions of underlying items being used in
these financial statements are those used by the Group and may not be
comparable with the term 'underlying' as defined by other companies within the
same sector or elsewhere.
Explanations for the items removed from the underlying figures are provided in
note 2.
· Constant Exchange Rate (CER) figures
These are used in the Business Review and give the readers a better
understanding of the performance of the Group, regions, and entities from a
trading perspective. They have been calculated by translating the HY2026
income statement results (of subsidiaries whose presentation currency is not
sterling) using HY2025 average exchange rates to provide a comparison which
removes the foreign currency translational impact. The impact of translational
gains and losses made on non-functional currency net assets held around the
Group have not been removed.
· Underlying diluted EPS
A key measure for the Group as it is one of the measures used to set the
Directors' variable remuneration. The calculation is disclosed in note 6.
· Underlying operating margin
Underlying operating margin is used in the financial review to give the reader
an understanding of the performance of the Group and regions. It is calculated
by dividing underlying operating profit (see return on capital employed
section for reconciliation to operating profit) by revenue in the year.
7. Alternative Performance Measure……continued
· Return on capital employed (ROCE)
Return on capital employed is a key metric used by investors to understand how
efficient the Group is with its capital employed. The calculation is a rolling
12 month underlying EBIT divided by average capital employed (net assets +
gross debt) over this period, multiplied by 100%. Underlying EBIT has been
reconciled to operating profit below.
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Underlying EBIT/Underlying operating profit 6,590 6,866 14,876
Separately disclosed items within administrative expenses (See note 2) (2,015) (3,066) (5,449)
Operating profit 4.575 3,800 9,427
· Underlying cash conversion as a percentage of underlying EBITDA
This is another key metric used by investors to understand how effective the
Group was at converting profit into cash. Since the underlying cash conversion
is compared to underlying EBITDA, which has removed the impact of separately
disclosed items (see note 2), the impact of these have also been removed from
the underlying cash conversion. The adjustments made to arrive at underlying
cash conversion from cash generated from operations are detailed below. To
reconcile operating profit to underlying EBITDA, see note 2.
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Underlying cash conversion 10,784 12,541 22,059
Profit on disposal of a subsidiary - 699 247
Restructuring and transformation costs (1,629) (2,217) (2,859)
Fraud incident loss - - (384)
Cash generated in operations 9,155 11,023 19,063
· Underlying effective tax rate
This is used in the underlying diluted EPS calculation. It removes the tax
impact of separately disclosed items in the year to arrive at a tax rate based
on the underlying profit before tax.
Six months ended Six months ended
30 September 2025 30 September 2024
Profit Tax ETR Profit impact Tax impact ETR
impact impact % £000 £000 %
£000 £000
Profit before tax 2,538 1,074 42.3% 1,571 228 14.5%
Separately disclosed items 2,015 261 12.9% 3,066 444 14.5%
Underlying profit before tax 4,553 1,334 29.3% 4,637 672 14.5%
7. Alternative Performance Measure……continued
· Adjusted net debt and adjusted net debt to Underlying EBITDA
ratio
This removes the impact of IFRS16 from both net debt and Underlying EBITDA and
IFRS 2 Share-based Payments from underlying EBITDA to better reflect the
banking facility covenant calculations. Other adjustments are made to meet the
calculations specified in the facility agreement. Underlying EBITDA is
reconciled to operating profit in note 2.
At At At
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Net debt (37,911) (33,902) (38,687)
Right-of-use lease liabilities 20,488 18,541 21,318
Adjusted net debt (17,424) (15,361) (17,369)
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Underlying EBITDA 10,015 10,512 22,018
IFRS2 share-based payment charge and other related costs (562) (347) (426)
Operating lease rentals (1,608) (2,165) (4,404)
Adjusted underlying EBITDA 7,845 8,000 17,188
· Adjusted interest cover
This is adjusted EBITDA to adjusted net interest to better reflect the banking
facility covenant calculations, removing the impact of IFRS 16 Leases.
Underlying EBITDA has IFRS 16 Leases and IFRS 2 Share-based Payments removed
above and is reconciled to operating profit in note 2.
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2025 2024 2025
£000 £000 £000
Net Interest (2,037) (2,229) (4,498)
Right-of-use liability interest 548 406 1,016
Adjusted net interest (1,489) (1,823) (3,482)
· Working capital as a percentage of revenue
This is calculated as current assets excluding cash, less current liabilities
excluding debt like items as a percentage of Group revenue. It is a KPI for
the Group as it remains a key focus to ensure efficient allocation of capital
on the balance sheet to improve quality of earnings and reduce the additional
investment needed to support organic growth.
8. Own shares held
The own shares held reserve comprises the cost of the Company's shares held by
the Group. At 30 September 2025, the Group held 1,145,315 of the Company's
shares (HY2025: 1,275,237; FY2025: 1,145,315).
9. Financial instruments
There is no significant difference between the fair values and the carrying
values shown in the balance sheet.
10. IFRS2 Share-based payments
During the period, a charge of £0.6m (HY2025: gain of £0.4m) was recognised
in relation to IFRS2 Share-based payments.
11. Related parties
Transactions between subsidiaries of the Group, are not disclosed in this note
as they have been eliminated on consolidation.
For the Executive Directors and the remaining key management personnel in the
period, there is no significant change in the components of the compensation
that would materially affect that disclosed in the Director's remuneration
report and note 28 of the consolidated financial statements for the year ended
31 March 2025.
In the period, there were share options granted to key management personnel
totalling 330,025 (HY2025: 9,430,800). There were lapses related to key
management personnel LTIP share options totalling 464,867 (HY2025: 230,808).
12. Other interest-bearing loans and borrowings
On 2 May 2024, the Group agreed to amend the interest cover covenant in the
Revolving Credit Facility and UK Export Finance (UKEF) Export Development
Guarantee (EDG) term loan facilities agreements. This applies from the 30 June
2024 quarterly covenant calculation as follows:
1. Each relevant period from 30 June 2024, ending on 30 September 2025: 3.25x
2. Each relevant period from 31 December 2025, ending on 30 September 2026:
3.50x
3. Each relevant period from 31 December 2026, thereafter: 4.00X
On 3 July 2024, KBC Bank NV (KBC) became a lender as part of the RCF
agreement. The facility commitment remained at £70.0m as an existing lender
transferred part of their commitment to KBC. This commitment will support the
Group's treasury strategy and plans in Eastern Europe.
Refer to note 26 of the Group's Annual report for the year ended 31 March 2025
for further details.
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