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(Sharecast News) - Industrial fastening specialist Trifast said in an update on Wednesday that revenue for the 2023 financial year was set to total around £245m, representing organic growth of 7% at constant currency.
The London-listed company said its US operation was a particular highlight, with a growth rate of over 25% in the 12 months ended 31 March.
Adjusted profit before tax for the year was also expected to be marginally ahead of the £9m guidance provided in February.
The firm said its fourth quarter performance allowed for the delivery of short-term profit and cash objectives, with an inventory decrease in line with expectations and a net debt before IFRS 16 narrowed to £38m.
Its board said it intended to propose an increased final dividend of 1.5p.
Trifast also confirmed progress across its immediate priorities to drive recovery in its financial performance, including effective pricing, a reduction in inventory, and the development of a comprehensive margin improvement plan.
The operational review was ongoing, with an initial focus on right-sizing group functions and the UK region, the integration of UK and Europe leadership, and consolidation of the UK footprint.
Looking ahead, Trifast said it was aiming to establish a clear customer value proposition, better accessibility and use of data, to fix or exit unprofitable customer transactions, embed a revised organisational structure aligning to its business needs, and manage a further reduction in inventory levels.
The company said it expected to see increasing benefits from commercial and cost initiatives, leading to a more resilient business entering the 2024 financial year.
"Whilst the 2023 financial year has been disappointing, the new leadership team has been able to take significant steps across a range of operational and financial initiatives in a short space of time and the initial results from the priorities outlined in February have been encouraging," the Trifast board said in its statement.
"Further scrutiny of the business in the intervening weeks underpins the board's belief in its previously stated key strategic indicators, including a return to double digit EBIT margins in the range of 10% to 13% in the medium-term.
"We are only a few weeks into the new financial year and whilst the destocking experienced from an Asian customer in the latter part of 2023 has abated, we remain mindful that the short-term macroeconomic outlook remains challenging."
However, Trifast said it had entered the new year with a backdrop of new contract wins and a "healthy" pipeline.
"These, together with the benefits from our operational improvement programmes, support the board's continued expectation in delivering a marked improvement in performance in the 2024 fiscal year.
"The company looks forward to updating shareholders further at the time of the annual results announcement."
At 0859 BST, shares in Trifast were up 12.54% at 70.45p.
