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Trifast PLC on Tuesday said its profit declined in the first half of the 2023 financial year, following a hit from higher interest rates.
The Uckfield, England-based industrial fastenings firm’s pretax profit declined to £5.5 million in the six months to September 30, down 22% from £7.0 million the year before. Trifast said this follows a yearly increase in interest rates by £300,000.
Coupled with a rise in Trifast’s underlying effective tax rate, this has resulted in a 25% decrease in diluted earnings per share to 3.33 pence, from 4.42p in the first half of financial 2022.
Despite the decline in profit, Trifast declared an interim dividend of 0.75 pence, up 7.1% yearly from 0.70p.
Revenue increased 16% to £120.2 million, up from £103.8 million the year before, due to growth in all sectors except health & home. Trifast said foreign exchange movements increased revenue by 2.1%.
The US division experienced the highest growth in sales to £13.6 million, multiplying from £6.7 million, following Trifast’s acquisition of TR Falcon. Sales in Europe grew 6.1% to a ‘record’ regional half year level to £43.3m from £42.2 million.
Italy has been ‘negatively’ impacted in the heath & home sector by the downturn in customer sentiment and the Ukraine conflict leading to a reduction in volumes produced in Trifast’s Italian manufacturing operation.
Since September, revenue and operating margins have been in line with expectations, and Trifast expects the lag between cost increase and recovery to improve in financial 2023.
Trifast appointed Darren Hayes-Powell as chief financial officer on Tuesday, effective in December. He joins from Goodyear Tire and Rubber Company where he was most recently group managing director for South Afria and Sub Saharan Africa.
Dan Jack has been appointed chief operating officer with immediate effect, having joined Trifast in 2020.
Louis Eperjesi, chair of CMS Window Systems, will join as a non-executive director in January.
Trifast shares were down 8.7% to 52.94 at midday on Tuesday in London.
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