2014 Preliminary Results

The Group performed strongly last year and started the current financial year on a similar trend.  Couple this with the acquisition of Viterie Italia Centrale Srl (“VIC”) and the other underlying opportunities around, we are confident this all provides a solid base and confidence that will underpin and deliver TR’s future performance.

Highlights

Year ended
31 March
2014
Year ended
31 March
2013
Change
Group revenue£129.78m£121.54m+7%
Underlying operating profit*£9.70m£7.97m+22%
Underlying profit before taxation*£9.16m£7.25m+26%
Operating profit£9.41m£7.16m+31%
Profit before tax£8.87m£6.44m+38%
Earnings per share:
 -Basic6.08p4.39p+38%
 -Adjusted diluted*5.95p4.73p+26%
Dividend  – final proposed1.00p-
   – total for year1.40p0.80p+75%
Strong cash generation, up 50% y-o-y£11.83m£7.87m+50%
-Cash conversion109.5%85.3%
Net cash / (borrowings)£2.03m(£5.20m)
Return on Capital (ROCE)16.3%12.1%

*pre IFRS2 charge and intangible amortisation

  • Impressive track record in Total Shareholder Return and increasing market cap from below £10m in 2009 to over £141m on 12 June 2014
  • 40% of revenue coming from Multinational OEMs- focus on accelerating the growth within this sector of the business
  • Strong performance across the globe: organic growth 'hotspots' developing across Asia, Europe and US, whilst our ongoing 'self-help initiatives' continue to make material improvements around the business particularly gross margins - thus providing tangible impetus to our ongoing financial progress
  • Training our people –'up-skilling' – adding value and expertise to have the ability to cross sell around the Group
  • Adding value through the recruitment of highly skilled applications engineers as TR grows its automotive output
  • TR's Branded and specialised products growth trend continues
  • Management confident that the combination of strategic and dynamic business streams are not only driving TR's current organic growth, but will continue to do so for the foreseeable future; however, as the fastener supply sector remains highly fragmented, there is ample scope for consolidation by acquisition

Post year end:

  • Largest acquisition to date - VIC, enhancing TR's offering and European footprint; also complementary and significantly strengthens TR's presence in the domestic appliance market whilst offering cross selling opportunities in our existing electronic and automotive Tier 1 markets
  • Promotion from Fledgling to the FTSE Small-cap and FTSE All-share indices expected 23 June 2014

View the announcement in full