Summary Results to March 2018

“TR delivers another year of strong growth and a 10% dividend increase - this year’s key revenue message continues to be one of consistent growth across all our regions”

“THE GROWTH STORY SET TO CONTINUE….”

Key Financials

Continuing operations

Year ended

31 March

2018 at CER

Year ended

31 March

2018 at AER

Year ended

31 March

2017

Change CERChange AER^
Total Group revenue£193.9m£197.6m£186.5m+4.0%+6.0%
Gross profit %30.5%30.5%31.1%-60bps-60bps
Underlying operating profit*£22.1m£22.7m£21.0m+5.1%+8.1%
Operating profit£18.4m£19.0m££17.9m+3.1%+6.3%
Underlying profit before tax*£21.6m£22.2m£20.5m+5.4%+8.5%
Profit before tax£17.9m£18.5m£17.3m+3.4%+6.7%
Underlying diluted earnings per share*13.39p13.78p12.82p+4.4%+7.5%
Diluted earnings per share11.82p12.20p10.40p+13.7%+17.3%
Dividend:
— final proposed2.75p2.50p+10%
— interim1.10p1.00p+10%
— total for the year3.85p3.50p+10%
Net debt£7.4m£6.4m+£1.0m
Return on capital employed (ROCE)*19.9%18.5%+20bps

* Before separately disclosed items (see note 2)

† Constant exchange rate (CER)

^ Actual exchange rate (AER)

  • Total revenue increase of 6.0% at Actual Exchange Rate (AER), 4.0% at Constant Exchange Rate (CER)
  • Sales to multinational OEMs contribute over 65% of Group turnover
  • At 30.5%, gross margin remains 50bps above target
  • Underlying profit before tax increased 8.5% at AER, 5.4% at CER
  • Total dividend of 3.85p, an increase of 10.0% on the prior year
  • An investment of up to £15.0m to transform our IT infrastructure and business processes has been approved, underpinning our future growth and generating an estimated ROI of over 25% p.a. at the point of full benefit realisation
  • Targeted warehouse expansions support double digit growth in key locations
  • Capital investment rises to £3.7m, increasing our manufacturing capacity and capabilities
  • Precision Technology Supplies (“PTS”), a key distributor of stainless steel fastenings in the UK, acquired on 4 April 2018, expected to be earnings enhancing in FY2019

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