In preliminary results published on 28th July, Trifast reported a resilient performance for the year ending 31st March 2020. Despite challenging market conditions, and the initial impact of Covid-19 in Q4, Trifast confirmed total group revenue of GB£200.5 million - a year-on-year decrease of only 4% at constant exchange rate.
Trifast saw revenue declines across nearly all its regions, ranging from 3.9% to 9.4%. The one exception to this being in the USA, where it reported that strong double-digit growth continued, up by 18.7% to GB£10.7 million (2019: GB£9 million) largely due to market share wins in the automotive sector.
Trifast’s European operations have seen a 3.9% reduction in revenue to GB£74.1 million (2019: GB£77.1 million). Well publicised decreases in automotive volumes have been felt most noticeably in the Netherlands and Sweden. Reduced volumes in domestic appliances and regional lockdowns in Q4 have decreased trading levels in Italy. Production volume declines in the electronics sector have reduced revenues in our Hungarian operations and weakened general industrial demand in Germany has hampered trading levels. Helping to offset some of those challenges, even in the current very uncertain environment, the Group’s newest greenfield site in Spain has gone from strength to strength, with a >50% trading increase via market share wins in the automotive sector.
In Asia, Trifast have seen the steepest decline in revenues of 9.4% to GB£53.7 million (2019: GB£59.2 million), in part as the impacts of Covid-19 were felt more strongly in Q4, most specifically in China, where lockdowns were in place as early as February 2020. However, the Group is now seeing recovery coming through earlier at its Chinese sites, with trading levels towards the end of Q1 of 2021 already returning to be in line with the start of 2020.
Overall, Trifast’s UK business has declined by 4.5% to GB£75.5 million (2019: GB£79.1 million) with well-publicised production volume decreases in the automotive sector being exacerbated by Q4 production line shutdowns and reduced distributor sales, most noticeably to the EU. The latest acquisition, PTS, has continued to show growth of >5% despite the current uncertain macroeconomic conditions, helped by increased medical sector and other distributor demand in Q4 driving a strong trading finish to the year.
CEO Mark Belton noted: "The Board would like to thank each and every one of our TR colleagues around the world for their hard work, flexibility and dedication over the last six months. By pulling together and supporting each other so well in such extraordinary times we have been able to keep our business, our customers and ourselves safe and ready to face the challenges and opportunities that are still to come."
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