Trifast (LON:TRFT)’s pre-close trading update indicates another strong year of execution of the company’s well-developed growth strategy. The profit before tax for FY18 is slightly ahead of management expectations, with investment continuing to support growth. A strong order pipeline at the year-end serves to underpin confidence in continued organic progression. The acquisition of Precision Technology Supplies (PTS) in the UK on 4 April 2018 should also make a full-year earnings enhancing contribution, and we have raised our forecasts for FY19 accordingly.
FY18 trading slightly ahead of expectations
All territories delivered organic revenue growth in the year ending 31 March 2018, and with the exception of the US, all contributed increased profitability. Overall investment in organic development continued with benefits from ongoing high levels of investment expected to continue in the current year. The balance sheet continues to be robust as disciplined working capital management has allowed maintenance of strong cash conversion despite the high levels of investment. We have reduced our FY18 revenue by 1%, reflecting Q418’s adverse FX movements but increase our PBT estimates by 2% to reflect the slight beat of management expectations. The company will provide full detail with its results on 12 June 2018.
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