Trifast Share Discussion Threads

[speedsgh] 20/11/2024 14:36

NOTE: Peel Hunt are broker to Trifast.

‘Buy’ Trifast, says Peel Hunt -

Peel Hunt is backing the turnaround story at Trifast (TRI), the manufacturer of bolts, nuts, screws and washers.

Analyst Lauren Baker Iguaz reiterated her ‘buy’ recommendation and target price of 140p on the stock, which gained 2.6% to 80p on Tuesday and has climbed 14.3% over the last 12 months.

First-half results from the group were ‘resilient’ and it reiterated full-year 2025 results. It achieved the highest gross margin since 2020.

Baker Iguaz said the first-half results showed ‘strategic progress and mid-term confidence are encouraging’.

‘Margins have improved, cash generation is solid, the balance sheet is strong, and the company remains confident in its mid-term ambitions,’ she said.

‘Our forecasts remain unchanged and we continue to believe in the turnaround story and that management can deliver what it promised.’

[qs99] 07/8/2024 07:58

Nice to see CEO purchasing such a decent chunk of shares.....DYOR

[johnrxx99] 04/7/2024 09:04

Richard Staveley of Harwood capital - well worth watching & listening

(Good content re TF)

[qs99] 31/5/2024 09:28

Have bought a few more this week....DYOR

[qs99] 25/4/2024 08:04

Decent update IMO/DYOR

[qs99] 13/3/2024 10:01

Not much volume, yet off nearly 10%! ANy views

[qs99] 22/1/2024 08:41

Well, IMO that dip/sell off has been well bought, was nearly 30% off on the open, now only 14% off....DYOR

[qs99] 22/1/2024 08:29

Market is digesting this news pretty well IMO....this was always a re-structure, de-leverage "play" so maybe market are saying, OK, get all bad news out and let's focus on delivering that flip from debt value into equity...DYOR let's seee

[qs99] 22/1/2024 08:08

Well good news is the leverage is coming right down, so long-term hold now! DYOR

[pugugly] 22/1/2024 07:38

Expect significant markdown on opening- Closing Friday 92/95

"Consequently, the Board now expects that the Group's results for the year ending 31 March 2024 to be significantly below its previous expectations, with revised revenue at c.£230m and adjusted EBIT margin percentage of c.5%.

The more testing environment that we are now experiencing in 2024 in terms of growth is being severely impacted by a further slowdown in customer demand and volumes across the business and to an extent by the reported macro-economic challenges and geopolitical events."

[tyranosaurus] 22/12/2023 08:39

Stake in Trifast has gone.

[eigthwonder] 01/12/2023 13:23

it's always been a bit opaque, but they do manufacture as well. in fact as i understand it they distribute stuff they make and third party product, and they sell stuff they make and distribute it themselves. i think their strongest hand lies in the fact they can supply a vast array of small components in the right mix at the right time - not a skill to be underestimated or undervalued.

[smithie6] 01/12/2023 12:48

Has this company got any protective moats for its business ?

For its distribution turnove (~3/4 of turnover) I don't see any.
If a car company wants X million fasteners per month, they can get a quote from Trifast as the distributor and also directly from manufacturers.
If the distributor wants too much commission then just deal directly with the producer.

Or am I missing something ?

And for fasteners that they make then the clients will surely seek competing quotes, which will surely limit the possible profit. And if the exchange rate moves against you might go from being busy to having little work since a competitor in other currency area might suddenly be cheaper than Trifast.

[queenbreguet] 24/11/2023 15:56

Starting to gain some momentum

[queenbreguet] 20/11/2023 12:08

Intrim results tomorrow. Any views ??

[queenbreguet] 10/11/2023 22:06

Signs of life

[joshuam] 24/10/2023 07:17

Very cautious pug……waiting game now until 21 November

[pugugly] 24/10/2023 06:30

Trading update cautious - Possible markdown on opening?

[boystown] 11/9/2023 07:43

Simon Thompson had this to say last week, FWIW (when writing about LDG...)

A nuts ‘n’ bolts recovery play
Trifast is interesting, too. It’s also a holding of the smart investment team at Rockwood Strategic (RKW), a constituent of my market-beating 2016 Bargain Share Portfolio. The company is an international manufacturer (30 per cent of sales) and distributor (70 per cent) of fasteners (nuts and bolts).

Operating across 34 locations, of which seven are high-volume manufacturing sites, Trifast sells 15bn parts every year. The company has a long history of profitability and cash generation, is well invested in plant and machinery and has substantial net assets. However, returns have fallen in recent years, and return on capital employed (ROCE) is poor. So, to boost Trifast’s operating margin, which declined from 6.7 to 4.9 per cent in the 2022-23 financial year, management is carrying out a restructuring to deliver savings. Also, a keener focus on cash generation and working capital management should help drive down the group’s elevated borrowings.

If all goes according to plan, there is potential to materially increase Trifast’s cash generation, reduce leverage and improve both ROCE and profits to drive a normalisation of the rating. To put the potential into some perspective, analysts at brokerage Zeus Capital expect operating profit to increase 70 per cent over the next two financial years from £12mn to £20.4mn. Their prediction is based on an expansion in Trifast’s operating margin from 4.9 to 7.5 per cent and factoring in 11 per cent sales growth.

Moreover, with net debt (including leases) forecast to be slashed from £53.8mn to £35.9mn, then more of the economic interest in the £108mn market capitalisation company will be transferred from debt holders to shareholders, a catalyst for a higher rating. The shares are priced on forward PE ratios of 12.3 (2024) and 8.6 (2025), highlighting the scale of the potential re-rating, assuming of course that the restructuring is well executed.

[pugugly] 11/7/2023 06:59

Accounts a bit of a curate's egg - Turnover up Profit down - Stock levels well reduced - Dividend up. Will have to see how Mr Market treats the results -
Forward vision apparently improved.
"There can be no doubt that this has been a very challenging year, particularly with macro-level supply chain issues and inflationary cost pressures. However, the recent performance, together with renewed focus, starts to give us confidence on achieving our plans in FY24.



In Q4 FY23, the Group achieved its key immediate priorities together with robust future orders received. Our record-breaking order book of £25.6m together with a focused, customer engagement programme allows us to work towards our medium-term objectives.



Our price increase programme for some of our key customers ensures price mechanisms are in place to manage future key cost drivers as our ongoing way of doing business. This, combined with our focused drive on working capital, especially inventory management, ensures we manage our customer expectations at controlled and appropriate levels. Our target for FY24 is to achieve a balanced inventory level with a continued focus to reduce further through innovative tools.



We have prepared for the future by renegotiating debt facilities, which will allow us to grow through organic and acquisition investments. This is in two forms: first, renegotiation of our RCF to £70m; and second, with a new UKEF-EDG supported debt facility of £50m. This combined facility will allow us the flexibility to invest and grow the business in the key sectors on a global basis.



In support of our ongoing growth journey and developing the foundations for the future we are targeting our capex on sustainable opportunities combined with short financial payback periods. FY24 is key to complete the revised roll-out for our business transformation D365 project by the end of the year.



As a result of this we are confident in the medium term that we can return to our KSI targets for both UOP% and ROCE.

At a guess will open down.

[archy147] 26/4/2023 21:13

Yep got a leg up as expected after the solid results today.

Overall still lingering though, amazingly it’s still only around the 70p mark. Was 190p before Covid and managed 160s in both 2021 and 2022.