Trifast (LSE:TRI) told investors that trading in the six months to 30 September remained in line with market expectations, with the revenue decline moderating to approximately 4.2% year-on-year, against a 7.1% decline in the same period last year.
The London-listed designer and manufacturer of engineered fastenings said the improvement reflected a return to growth in the UK and increased stability in Europe, partly offset by softer automotive demand in North America and Asia, and continued disruption in the Middle East affecting its planned Saudi Arabian operations.
Gross margin held steady at 28.7%, in line with the prior-year period, while underlying EBIT margin improved by approximately 80 basis points year-on-year to 7.4%, which the company attributed to operational efficiencies, cost discipline and transformation initiatives. The prior-year comparator of 6.6% has been restated from 6.3% following the reclassification of Project Ignite costs from capital expenditure to separately disclosed items.
Trifast's FY26 results, published in July, showed underlying EBIT of £16.3m on revenue of £207.1m, with group EBIT margin at 7.8% as the company deliberately shifted away from lower-quality customers toward higher-value verticals; reported pre-tax profit had fallen to £0.1m after £6m of Project Ignite implementation costs were expensed under cloud accounting rules.
The group said its balance sheet remains robust, with leverage below 1x, and that transformation projects, including Project Ignite, continue to be funded by working-capital improvements; Project Ignite is expected to conclude in the second half of the financial year.
Trifast is investing approximately £4.6m in the second half of this financial year and the first half of FY28 to establish a distribution platform in Mexico, aimed at improving responsiveness for customers across its Automotive, Smart Infrastructure and Medical end markets, with the platform expected to become operational during FY28.
Read more about Trifast
- 08/09/26Trifast confirms trading in line with expectations
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- 29/04/26Trifast shares fell after FY26 outlook seen 'in line'
The group also opens a new distribution centre in Chennai on 21 October, expanding capacity in South India to support growth in its Smart Infrastructure business there.
"The Board remains confident in delivering further margin improvement in H2 FY27, targeting double-digit EBIT margins in the period, ahead of our stated timeframe," the company said, citing its strongest ever commercial pipeline.
Consensus market expectations for the year ending 31 March 2027, compiled by the company from analyst estimates, stand at revenue of £214m and adjusted EBIT of £18.2m.
Trifast will publish half-year results for the six months ended 30 September on Tuesday, 17 November.