Letter from the Chairman Half-year ended 30 September 2017

Chairman's letter - Malcolm Diamond MBE

“Our strong first half results, together with a robust balance sheet, good access to banking facilities and a proven track record of profitable investment, means the Group is in a great position to keep moving forward. The second half has started well and, with a robust pipeline in place, the Board remain confident of delivering its expectations for the current financial year"

Malcolm Diamond MBE, Non-Executive Chairman

INTRODUCTION

We continue to develop the depth and scope of our business from a position of financial strength and stability that derives from continuing organic growth, supported by effective cash management and overhead controls.

Global market overview

We imagine that there are very few of us in commerce that have failed to be influenced by the recent geopolitical uncertainty that has abounded, and which shows every sign of continuing.

The Trifast Board and management team have concluded, that in our view, global market demand will remain dynamic, and so we have increased our focus on our customers and our supply chain, including our pricing negotiations with key suppliers. This is coupled with our ongoing forward investment in plant and machinery, automation and people skills.

TR strategy update

Our commitment to continuous operational improvement over the past five years has been rewarded with positive KPI performance against targets on a consistent annual basis, together with financial reward for our investors and staff.

Building on this success, the Board, led by Mark Belton, has initiated a major long-term project to provide the Group with improved real time management information (including an innovative customer relationship management (CRM) and global enquiry system), paralleled with regular senior team training and operational meetings. This is aimed at significantly developing and integrating our existing IT infrastructure around the world so as to support our ongoing growth plans and meet our multinational OEM customers’ evolving demands. One early benefit of this improved approach is that our six Asian factories are now sharing factory capacity data to enable work to be shared at times of feast and famine production issues – previously these were managed on a local basis, thus restricting revenue and cost recovery opportunities.

Furthermore, this enhanced use of collective resources is supported by major capital investments in Italy, Singapore and Taiwan, plus distribution and engineering capacity investment in the UK, Sweden, Spain and China.

Our search for suitable acquisitions continues to be a major strategic aim. Since we last reported in June 2017, two larger international targets were thoroughly investigated over several months by our newly formed global acquisitions team, but regrettably, both were finally rejected - more due to future revenue growth risk than to high valuations. Our team brings together the skills and experience needed to conduct initial due diligence without the need to appoint costly external financial advisers. These advisers will only be appointed in the future following the successful agreement of non-binding heads of terms.

Succession and people

It has been a real pleasure to sign an increasing number of long service award certificates for our burgeoning loyal members of staff – some of whom have now reached forty-years’ service, along with many overseas employees being recognised for service of ten years and more.

Across the Group, skills and personal development training are high on the list for resource funding and management focus, especially as our ever-improving operational efficiencies are creating the need for heightened individual capabilities as opposed to the need for always increasing head count to accommodate business growth.

I am personally proud and delighted to oversee the further capability development of our business whilst the core Trifast caring and informal interpersonal culture is jealously guarded by our management.

 

View the 2018 Half-yearly Report

View the 2017 Annual Report

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