(Alliance News) - Industrial fastenings firm Trifast PLC held its interim dividend Tuesday after profit and revenue dipped modestly and it announced the departure of its chair.
For the six months ended September, pretax profit narrowed 1.3% to GBP7.9 million from GBP8.0 million the year prior. This was after revenue fell 1.8% to GBP103.1 million from GBP105.0 million the year before.
"Despite the short-term end market weaknesses and macroeconomic uncertainty, we are confident in the strong long-term fundamentals of our business model," Chair Malcolm Diamond said. "The board remains committed to its ongoing investment driven growth strategy and is optimistic for the long-term future."
Trifast proposed a 1.20 pence per share interim dividend, unchanged on the year prior.
"After ten years of continuous growth and strong cash generation, we have a very solid balance sheet," Diamond added. "This coupled with our new banking facilities provides us with significant flexibility and security, to continue to invest and to make sure that when the macroeconomic environment begins to settle, we have the best foundation and are in the best possible position to add further stimulus to our growth ambitions."
In April, Trifast signed a new four-year banking facility with three banks. At the end of September, the firm still had GBP39.9 million of headroom within the revolving credit facility. In addition, Trifast has access to a further GBP40 million through an accordion facility.
In a separate announcement, Chair Malcolm Diamond said he planned to stand down at the end of March. Diamond has served as chair since 2017, having previously been chief executive at the firm between 1984 and 2002.
He will be replaced as chair by Non-Executive Director Jonathan Shearman.
"It has been a privilege to both work with and develop a mutual respect and friendship with Malcolm over my own 20-year career with the group," Chief Executive Officer Mark Belton said. "Over this time, he has played a key mentoring role from which I and many of the senior team have been lucky enough to gain invaluable experience."
"I am also delighted that Jonathan has accepted the role as chair from next financial year; his wise counsel on many different facets of business including creating shareholder value has played an important role in the Trifast story since 2009," Belton added.
"Given the importance of continuity and culture, Jonathan's intimate knowledge of the business, and our global aspirations we believe makes him the right candidate at this time to take on the role of chair and we all look forward to working with him as we move forward in delivering our future growth strategy."
Shares in Trifast were 1.6% lower at 165.30 pence in London on Tuesday.
By Ahren Lester; ahrenlester@alliancenews.com
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Trifast (TRI)