In its half year pre close update Trifast has indicated that trading continues to perform in line with management expectations, confirming the trends noted in the AGM trading statement in July. With organic investment continuing to add capacity and capability, we expect modest growth in the current year despite the continuing financial and political uncertainty and FX-induced margin pressure in the UK.
Written by
Trifast |
Half year trading as expected |
Pre-close update |
Industrial support services |
25 September 2017 |
Share price performance
Business description
Analysts
Trifast is a research client of Edison Investment Research Limited |
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In its half year pre close update Trifast has indicated that trading continues to perform in line with management expectations, confirming the trends noted in the AGM trading statement in July. With organic investment continuing to add capacity and capability, we expect modest growth in the current year despite the continuing financial and political uncertainty and FX-induced margin pressure in the UK.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/16 |
161.4 |
16.0 |
9.99 |
2.80 |
20.1 |
1.4 |
03/17 |
186.5 |
20.5 |
12.82 |
3.50 |
15.7 |
1.7 |
03/18e |
192.0 |
20.7 |
12.56 |
3.65 |
16.0 |
1.8 |
03/19e |
197.9 |
21.7 |
13.15 |
3.80 |
15.3 |
1.9 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
In our view, there are two points to note in the statement. First, the concerns over input cost pressures in the UK arising from weaker sterling are being balanced at a contribution level by the continuing benefits of FX translation of overseas trading that account for 70% of the group total. Second, Trifast is continuing to look for opportunities to deploy its strong balance sheet on acquisitions, but has yet to find a suitable target. Two business were examined during the first half but management walked away after the due diligence process. The discipline in this regard is encouraging in terms of shareholder value creation. We continue to expect modest progression on last year’s record results and await a further update on the outlook for the remainder of the year with the interim results to be announced on 14 November 2017.
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Disclaimer
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Disclaimer
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