11/12/2014 12:09:00 PM
NEWS BRIEFS
UK’s Trifast Reports “Best Ever” Results
Trifast Group reported revenue in the first six months of fiscal 2015 grew 13.4% to £74.03 million (US$117.3 million), largely due to the May acquisition of Italian fastener manufacturer and distributor Viterie Italia Centrale (VIC), which contributed £7.51 million during the period ended 30 September 2014. Six-month organic revenue increased 1.9%.
TR UK showed organic revenue growth of 2.1%; TR Asia showed a decline in revenue of 5.9%; TR Europe (excluding VIC) grew by 11.3%; and TR USA by 28.4%
Six-month gross profit increased 45.6% to £7.07 million, with VIC contributing an operating profit of £1.66 million.
Organically, profit in Europe grew the most at 52.3%, giving a contribution return of 8.9% excluding VIC (13.6% including VIC); TR Hungary and TR Holland performed “exceptionally well”, the former on the back of key Multi-national electronic customers and the latter on automotive business secured over the previous years. TR UK profits rose 13% on revenue gains, better sourcing and continual efficiency improvements; the UK business is now delivering a 9.1% return. TR Asia’s profits increased 3% due to tight control of overheads and a reduction in inventory provisioning; TR Asia’s current return is 14%. And TR USA profits increased 9.7%, principally due to the top line growth which is beginning to expand into the automotive sector.
Performance “hot spots” during the period were: sales of TR Branded specialist products via Lancaster Fastener and TR Fastenings to distributors in the UK and Europe; Hungary winning extra revenue from the electronics sector; and both TR UK and Holland gaining strong growth from the automotive sector in the period.
Trifast said its Asian factories continue to make progress toward ‘zero-defect’ compliance for customer requirements within the telecoms/electronics and automotive sectors.
And the group said its investing further in Asia and the UK.
“We are pleased to confirm that, after many years of caution regarding new investment, the Group is now authorising expenditure on selective sophisticated component manufacturing plant in Asia and automated vertical product storage systems within the UK. We expect a maximum three year payback on these initiatives due to their high impact on productivity gains.”
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