Trifast Share Discussion Threads

[hawaly] 18/11/2014 13:10

Tipped this lunchtime by Simon Thompson in IC:



"Exploiting Valuation Anomalies"

A sound bolt on purchase

Trifast (TRI: 111p), a global manufacturer and distributor of industrial fastenings, has delivered half-year results way ahead of analysts estimates prompting a raft of earnings upgrades.

[hatter2] 13/11/2014 11:56

I had planned to add to my holding yesterday but was running a little late for a train and decided to wait until the next day; never mind. I will add on any significant pull back of the share price

[fargonorthdakota] 12/11/2014 13:51

Still seems to be going well today. I am wondering if the Naked Trader increased his holding on the basis of the RNS. Might find out tonight.

[manrobert] 11/11/2014 21:02

no problem.

[alan@bj] 11/11/2014 20:45

Just checked - and confirm the comment's author is Julia Bradshaw. Apologies, no intent to mislead.

[manrobert] 11/11/2014 20:07

it wasn't simons view it was Julia bradshaws view for i.c.mag.hopefully simon will comment shortly.

[hatter2] 11/11/2014 18:20

alan many thanks for posting Simon Thompson's view.

I think I will be adding to my current holding and as said before not looking for a quick profit.

[alan@bj] 11/11/2014 17:06

Simon Thompson's latest view:-

Stick with Trifast
Engineering group Trifast (TRI) has just reported the "best six months' profit in the company's history," according to chief executive Jim Barker. Cutting costs boosted margins, while the VIC business - an Italian maker of fastening systems acquired in May - has integrated well. Profit forecasts for the full year have been upgraded, too, on the back of a healthy order book.

The group's 13 per cent sales growth was largely down to VIC, which contributed £7.5m to the result. Strip that out and sales rose 2 per cent. But that understates the health of the business: at constant exchange rates top-line growth would have been 7 per cent, with growth across all regions. Adjusted operating profit jumped 46 per cent to £7.07m, boosted by a £1.6m contribution from VIC.

Meanwhile, better sourcing, operational gearing and warehouse efficiencies drove a 130 basis point improvement in the gross margin. Mr Barker said the self-help programme started back in 2011 "keeps on giving". He also said that demand from Trifast's key customers in the automotive, electronics and telecom, domestic appliance and distributor sectors showed no sign of easing - whatever one might read about macroeconomic misery. The group is therefore investing in new manufacturing plants and recruiting additional engineers.

N+1 Singer is forecasting adjusted pre-tax profit of £13.2m for the full year, giving EPS of 8p, up from £9.2m and 6p.

IC VIEW
The engineering sectors have been derated in recent months. But the downside is probably limited from here. Given Trifast's strong order book and potential to grow market share, the current share price - about 13 times this year's earnings - looks like a buying opportunity. Buy.

[gswredland] 11/11/2014 16:30

YES ME TOO FARG!

[fargonorthdakota] 11/11/2014 16:24

A good day for TRI holders. Solid company good growth. I like boring engineering firms ;)

[superstardj] 11/11/2014 10:48

Much of the product offering is custom made fasteners for individual clients or specials. TRI retain the IPR on these. There is very little plain vanilla product.

[hatter2] 11/11/2014 10:28

I agree with sentiments posted regarding the interims. I am a current holder and will probably increase the percentage of Trifast in my portfolio as there are a good number of points that attract me to this company.


Things I like, in no particular order:

The well communicated trading statements and reports.

Very positive statements.

The amount of investor information on the Trifast site with even videos going right back to the formation of the business to what gives it the edge over the competition.

The numbers (based on information prior to the interims via Stockopedia):

ROCE: moving increasing nicely year on year over the past five years and now reaching what I consider as attractive levels.
No debt issue to worry about.
Good cash flow to eps and good free cash flow. PFCF and PE similar and reasonable; just gives me confidence that manipulation of eps is not taking place.
Operating margin increasing year on year over the past four and now five years.
A Piotroski score of 8; again giving me further confidence in the business.

Things I would like to see:
Possibly a more generous dividend: however, not at the expense of the growth of the business.


The above are just my thoughts and in no way a recommendation to others to invest in this company that many would see as boring; but I like to be bored. Personally I don’t see the share price flying in multiples but a 10-15% annual increase over the next couple of years would do me fine; as I say just my thoughts.

The main thing that I would worry about with Trifast is the barrier to entry from potential competition. They do seem to be regarded as the quality producer in the world of fastenings. I would be interested if anybody had any thoughts on the threat of competition.

[bigdazzler] 11/11/2014 08:57

Also note that Westhouse securities have a price target of 185p and singer have a target of 140p

[bigdazzler] 11/11/2014 08:54

Great stuff, shows good 'boring' companies make you good profit over the long term. Expect the recent highs to be retested by the end of this year.

Still plenty more on the long side in this share.

[sailastra] 11/11/2014 08:09

In tough markets like these and to have done this well is excellent stuff.. Once and if a European recovery gets added to the mix the prospects will be transformed...

[mg1982] 11/11/2014 07:40

Excellent results and already confident of beating market expectations for full year. Well done management!

[manrobert] 11/11/2014 07:25

yes wonderful results.

[broadwood] 11/11/2014 07:10

Like it.

The order book position and current levels of organic growth are such that the Board remains optimistic about the Group's outlook and expects trading to exceed its expectations for the financial year as a whole

[manrobert] 10/11/2014 14:34

not much action before tomorrows results,

[hatter2] 03/11/2014 09:01

Half year results scheduled for 11th November.

[manrobert] 03/11/2014 08:05

results soon?

[manrobert] 21/10/2014 14:23

nice large purchase;

[lozler] 14/10/2014 23:58

Guys, the market has been screwed for a month, that's why things are moving down... Things will turn around once the market returns to normal.