2018 Half-yearly results summary

"Another six months of strong growth, with increased trading driving up our underlying PBT"

Key financials

Continuing operations (Actual Exchange Rate, AER)Change
HY2018
v
HY2017
HY2018HY2017FY2017
Group revenue+9.0%£97.8m£89.7m£186.5m
Gross profit %-140bps30.2%31.6%31.1%
Underlying operating profit*+8.5%£11.1m£10.3m£21.0m
Operating profit+6.4%£9.3m£8.8m£17.9m
Underlying profit before tax*+9.7%£10.9m£9.9m£20.5m
Profit before tax+7.7%£9.1m£8.5m£17.3m
Underlying diluted earnings per share*+8.1%6.78p6.27p12.82p
Diluted earnings per share+23.1%6.56p5.33p10.40p
Basic earnings per share+22.2%6.72p5.50p10.72p
Interim/total dividend^+10.0%1.10p1.00p3.50p
Net debt-£6.3m£7.9m£14.2m£6.4m
Return on capital employed (ROCE)*+150bps20.1%18.6%19.9%

* Before separately disclosed items (see notes 2, 6 and 9 in the HY report).

^ Change is in interim dividend only.

OPERATIONAL HIGHLIGHTS

  • Revenue up by 4.8% at Constant Exchange Rate (CER), 9.0% at AER, all organic growth
  • Underlying diluted earnings per share up by 8.1% at AER
  • Confidence for the future and continued profitable growth in a period of investment, drives an interim dividend increase of 10.0% to 1.10p
  • Ongoing investment for growth in our sales teams and operations around the world
  • Capital investment of £1.3m increases our manufacturing capacity and capability, with more to follow
  • Expanded distribution facilities in Shanghai, with plans in place for Holland and Northern Ireland
  • New TR Innovation and Technical Centre to be set up in Gothenburg, Sweden’s electric vehicle development area
  • TR Fastenings Espana up and running, with a strong pipeline in place
“HY2018 delivered another six months of strong growth, with ongoing investment across all of our regions. 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. As an international business with over 70% of our revenue being generated outside of the UK, and a very well-balanced geographical and sector spread, the Board remains confident we have the flexibility and foresight to continue to grow, while facing any challenges head on as and when they arise.” - Malcolm Diamond MBE, Non-Executive Chairman

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