Trifast (LSE:TRI) shares fell, down 4.5% to 63.0p, after the group said FY26 underlying EBIT would be c.£16m, in line with expectations, as revenue declined by c.7.0%.
Revenue weakness reflected lower volumes, the exit of low‑margin customers, tariff disruption and ongoing automotive sector softness, while gross profit margin improved by c.150bps to c.30% and group EBIT margin is expected to rise to c.7.8% (2025: 6.7%) driven by self‑help initiatives, inventory discipline and the sale of excess and obsolete stock.
"We remain confident in our medium‑term prospects and >10% EBIT margin target driven by the continued successful delivery of our Recover, Rebuild, Resilience strategy," said Iain Percival, Chief Executive Officer.
As part of that strategy the board has decided to close manufacturing operations in Malaysia while retaining a sales and distribution hub and intending to develop a shared services capability over time. The Malaysian exit, together with ongoing conflicts in the Middle East and disruption to a customer in Saudi Arabia, is expected to reduce FY27 revenue by c.£8m and to weigh on regional activity and supply chains.
Leverage remains below 1.0x, working capital discipline continues to generate cash, the Group reports its strongest commercial pipeline in two years, and it expects to announce FY26 results on 2 July.
