Trifast Regulatory News (TRI)

19 Jun 2007 07:01

Trifast PLC19 June 2007 19 June 2007 TRIFAST PLC Preliminary Results for the year ended 31 March 2007 Commenting on the year's results, Steve Auld, Chief Executive, said:"2006/07 has been marked by many excellent results for Trifast plc. The Group's financial targets have been achieved enabling the Management Team toreport new levels of shareholder value, to consider investment in new businessstrategies and, very importantly to look at new business opportunities in newcountries." Financial and Operational Highlights: • Revenues increased by 12% to £131.9m (2006: £117.3m) • Pre-tax profit* grew by 55% to £8.8m (2006: £5.7m) • Diluted earnings per share increased by 154% to 4.70p (2006: 1.85p) • Final dividend increased by 12% to 1.66p (2006: 1.48p) • Successful integration of Serco-Ryan, planned £2.0m cost savings exceeded • Purchased 25% stake in leading Malaysian manufacturer Techfast for £2.7m • Positive start to new financial year • Development of the "key skills" of staff to underpin a strategy of sales growth * Pre intangible amortisation, goodwill impairment, IFRS2 charges and restructuring costs Enquiries: Trifast Group plc Tel: 020 7360 4900 on 19 June only, thereafter Tel: 01825 747 366Steve Auld, Chief Executive OfficerStuart Lawson, Chief Financial Officer Smithfield Consultants Tel: 020 7360 4900John Antcliffe / Will Swan Arden Partners Tel: 020 7398 1632Richard Day / Steve Pearce Notes to Editors Trifast plc is a leading international manufacturer and distributor ofindustrial fastenings to the assembly industries, with operations in Europe, theAmericas and Asia. For more information please visit www.trifast.com Trifast plc Preliminary Results for the year ended 31 March 2007 31 March 31 March Percentage 2007 2006 Change Revenue £131.95m £117.28m Up 12% Gross profit £34.72m £29.13m Up 19% Operating profit £9.74m £6.38m Up 53%(before intangible amortisation, goodwillimpairment, IFRS 2 charges and restructuringcosts) Operating profit £6.36m £3.24m Up 96% Pre-tax profit £8.81m £5.69m Up 55%(before intangible amortisation, goodwillimpairment, IFRS 2 charges and restructuringcosts) Pre-tax profit £5.43m £2.55m Up 113% Earnings per share- Adjusted diluted 7.29p 4.76p Up 53%- Basic 4.70p 1.86p Up 153%- Diluted 4.70p 1.85p Up 154% Dividend- Final 1.66p 1.48p Up 12%- Full Year 2.43p 2.21p Up 10% Directors Business Review by Steve Auld CEO and Stuart Lawson CFO Summary of Trading The Group reported strong financial results for the year, creating a strongplatform for the management team to invest in new business strategies andimportantly to look at new business opportunities in new countries. Revenues for the Group increased by 12% to £131.95million, with the contributionof acquisitions and strong growth in Asia offset in part by a decline in salesin the UK. Export sales grew by 36%. The 55% increase in pre-tax profit (beforeintangible amortisation, goodwill impairment, IFRS2 charges and restructuringcosts) to £8.81million reflects both the growth in revenues and operating marginimprovements driven by an improved business mix, purchasing initiatives and thesuccessful integration of Serco-Ryan resulting in cost savings in excess of£2.00million per annum. Today, the structure of our business allows us to provide flexible solutionsthrough an enhanced level of service to our customers both in the UK and aroundthe world. We have strong management and operating teams, a good spread ofcustomers and sectors supported by a widespread geographical operational networkwith highly motivated and experienced staff. As expected the raw material price pressures have continued resulting in themarket place still being price competitive. However, we are pleased to reportthat the new financial year started positively. The Group is operating from aposition of strength led by the highly experienced Management Team. The 2006/07 business year has been very successful and has seen the Groupachieve market expectation for its operational profit numbers. The business integration of Serco-Ryan has been a great success. This hasallowed us to accelerate our plans for the further development of the Group. During the year we have undertaken detailed market research within Europe on themarkets in which we plan to operate and, as a Group, we are now starting to makekey investments in organisational structure. We have also expanded in Asia to meet the anticipated growth in demand for ourproducts where we have seen turnover increase by 21% in this region. In consolidating our UK businesses following the acquisition of Serco-Ryan wehave seen our UK operating profits grow by 55% despite a decline in salesresulting from the continued downsizing of the UK automotive sector. The disappointing region for us this year has been the USA which is covered inmore detail below. The year's highlights: • Sales up 12%; • Pre-tax profit up 55% (before intangible amortisation, goodwill impairment, IFRS2 charges and restructuring costs); • Full year dividend increase 10%; • Export sales up 36%. After five years as Chief Executive of Trifast, Jim Barker stood down at the endof May. Since April 2002 Jim has overseen the Group's acquisition of Serco Ryanand the transformation of the Group into a major player in the industrialfastener market. We would like to extend our thanks to Jim for his unfailingcommitment to Trifast over this period. Opportunities Within Europe the Group is currently reviewing its sales activities in Polandand is in the process of setting up a sales office to support both our currentand future business in this region. In Asia our Management Team is investigatingthe business case for setting up a distribution and manufacturing facility inIndia. These opportunities, if implemented, will become operational towards theend of the current financial year. Europe Europe has seen the greatest improvement in fortunes when compared to the prioryear with profit growth (before intangible amortisation, goodwill impairment,IFRS2 charges and restructuring costs) of 59%. The European subsidiaries, withthe exception of France, have generated good revenues and operating profit forthe financial year 2006/07. We believe that the management and development ofsales and operating profits in these areas will continue to be strong. As we believe TR France has no prospect of achieving a profit in the medium termwe will discontinue operations over the next 6 months, electing to supplycustomers either from the UK or Holland. Elsewhere sales to distributors through Lancaster Fasteners have been verysuccessful with an operating profit growth of 23%. The Americas Trifast's acquisition of a West Coast distributor business in the late 1990'ssupported the strategy of pursuing global OEM customers. Much of the largerbusiness has since evaporated as these major OEM's opted for the use of contractmanufacturers predominantly sited in Asia. Trifast subsequently achieved outstanding success by following this business toAsia, necessitating a review of our US strategy as described below. The USA will concentrate on its existing small OEM customer base and thefoundation of a distributor network of proprietary products. The Board isconfident that a more narrowly focused OEM sales activity, in conjunction with adistributor based products sales initiative, provides the best prospect forfuture success in the USA. Asia Sales growth in Asia is 21% in the financial year 2006/07 which produced asignificant operating profit growth of 43%. Our challenge in Asia is to ensure our current manufacturing equipment andprocesses keeps pace with the demand from our valued customer base. We havefurther manufacturing capacity within our Asian facilities as all factories arenot running a three shift programme, with the exception of Singapore. Our Asian businesses are constantly looking to maintain full compliance withindustry quality standards and indeed the environmental accreditation IS14001(our Singapore factory is approved). Review of our financial performance in 2006/07 31st March 31st March Percentage change 2007 2006 £million £million Revenue £131.9 £117.3 Up 12% Principal reasons for revenue growth in 2006/07 • a full year's results for the acquisition made in 2006 of Serco-Ryan • increased transactional sales in the UK; • 52% growth in Singapore sales due to increased usage in disk drive products; • The above partly off-set by a decreased turnover in some large contract accounts in the UK, predominantly in the automotive sector due to consolidation, and a continued down sizing of the UK manufacturing base. 31st March 31st March Percentage 2007 2006 change Gross profit margin* 26.32% 24.84% Up 6%Operating margin* 7.38% 5.44% Up 36% * before intangible amortisation, goodwill impairment, IFRS2 charges andrestructuring costs. Principal Reasons for margin improvement in 2006/07 • improved quality and mix of business; • improved purchasing initiatives including increased spend in Asia and more importantly in our own factories; • reduction of business in lower margin automotive sector; • increased operational efficiency; • improved overhead efficiency (see below). 31st 31st Percentage March March Change 2007 2006 £million £million Profit before tax, £8.81 £5.69 Up 55%intangible amortisation, goodwill impairment,IFRS2 charges and restructuring costs Principal Reasons for improvement in profit before tax in 2006/07 • increased turnover (as noted above); • gross margin improvement (as noted above); • restructuring programme with the planned £2.00million annualised cost savings exceeded; • full year's results for acquisitions made in 2006, Serco-Ryan and TR Keba Turkey. 31st March 2007 31st March 2006 Percentage changeOverhead costs as a 19.10% 19.50% Reduced by 2%% of turnover* * before intangible amortisation, goodwill impairment, IFRS2 charges andrestructuring costs. Principal Reasons for increased overhead efficiency in 2007 • consolidation of business platforms; • improved use of IT technology; • streamlined management structure throughout Europe; • improved awareness of costs and cost controls. As a team we are satisfied that the Group has made good progress in all of theabove areas as shown by the numbers. Having reduced our operating platform andimproved our efficiencies over the last two years, our focus for the next 12months is now firmly on topline sales growth with the Management Team nowinvolved in all areas of our business to promote this. Restructuring costs During the period, we completed the integration of the UK businesses of TRFastenings Limited and Serco-Ryan and commenced the closure of Trifast's Frenchoperation, thereby completing the restructuring of our European businessplatform. The costs associated with this restructuring amounted to £2.89millionpredominantly arising from employee contract termination costs, propertydilapidation and fixed asset disposal and the legal costs associated with siteclosures. In total eight sites were closed or significantly restructured inEurope and the business merged into other larger and more efficient Trifastlocations. Have These Improvements Increased Shareholder Wealth? Earnings per share We are presenting an adjusted diluted earnings per share measure that adds backthe effect of restructuring costs, intangible amortisation and impairment ofgoodwill and the related tax effects. 31st March 2007 31st March 2006 Percentage per share per share change Adjusted diluted earnings per share 7.29 pence 4.76 pence Up 53%Basic earnings per share 4.70 pence 1.86 pence Up 153% The diluted weighted average number of shares outstanding during the period was84,584,980 (2006: 77,639,682). Dividend payment The Board continues to maintain its progressive dividend policy (an increase of5% per year for the last 5 years), but given the excellent results this year, itis proposed to increase dividends by a further 5% giving a full year dividendgrowth of 10% on the prior year, and being a good reflection on the Board's viewof the success of this year's numbers and confidence in the future prospects ofthe Group. 31st March 2007 31st March 2006 Percentage per share per share Change Final Dividend Payment* 1.66 pence 1.48 pence Up 12%Full Year Payment 2.43 pence 2.21 pence Up 10% The final dividend, which is subject to shareholder approval at the AnnualGeneral Meeting on 27th September 2007, will be paid on 17th October 2007 toshareholders on the Register as at 29th June 2007. * In compliance with IAS 10 the final dividend will be shown as an appropriationof reserves in the year ending 31st March 2008. Have we managed our assets successfully? We have grown Return on Capital Employed by 31% by growing profitability andsuccessfully managing our working capital. Free cashflow, (being cashflow before acquisitions, financing costs andrestructuring costs) for the Group for 2007 was an inflow of £9.89million (2006:£6.28million inflow). Controls on working capital remain tight with debtors daysat 67 days (2006: 65 days) and creditors at 78 days (2006: 69 days). The stock level remained relatively constant at £25.61million (2006:£25.12million) which reflects an underlying decrease in customer specific stock,held an increase in own branded product ranges held for the growth of the MasterDistribution Programme and foreign exchange loss on re-valuation. We continue tofocus on this area and drive initiatives to increase the return we generate fromour stock asset. Capital expenditure was relatively low during the period at £0.68million (2006:£1.15million). This reflected the continued focus during the period onrestructuring and reduced investment in our manufacturing plant in China as itreaches profitability at Phase 1 before moving into Phase 2. We expect to see anincrease in capital expenditure for 2008 as we invest in upgraded IT Systems andPhase 2 in China, pushing capital expenditure for 2008 to around £1.25million. Depreciation levels were £1.17million (2006: £1.26million). We expect this toremain relatively constant for 2008. Although our gross debt figure remains relatively unchanged at £19.19million(2006: £18.96million) we have during the period paid out the final £2.00millioninstalment for the Serco-Ryan acquisition in cash instead of shares, a movewhich had a positive impact on earnings per share, and we also acquired the 25%stake in Techfast Holdings Bhd in Malaysia for £2.74million cash, again adecision that enhanced earnings per share. As last year, cash generation from operating activities was strong with£10.88million (2006: £8.64million) being generated before the cash impact of£1.63million restructuring costs, an increase of 26%. At the year end the Group held net cash of £6.47million (2006: £6.25million),thus giving us net borrowings of £12.72million (2006: £12.71million). This hasresulted in a reduced gearing level of 26.0% (2006: 26.5%), which leaves theGroup with the capacity to continue its growth strategy and to take advantage ofthe consolidating market place. Our Summary of 2006/07 2006/07 has been marked by many excellent results for Trifast plc. The Group's financial targets have been achieved enabling the Management Team toreport new levels of shareholder value, to consider investment in new businessstrategies and, very importantly to look at new business opportunities in newcountries. The development of "key skills" in our Group has undergone a complete reviewwith more staff now attending or starting training initiatives supported by theGroup and its Management Teams. Operating a clear business strategy that is targeting sales growth, the Groupwill continue to utilise its financial strengths, motivated and experiencedstaff, modern "world class" Asian factories and global distribution network. Prospects The excellent performance in 2007 has created a strong platform for the Groupand the Board is pleased to report that the new financial year has startedpositively. The Board is confident about the future prospects for the Group. Steve Auld Stuart LawsonChief Executive Officer Chief Financial Officer Trifast plc Preliminary Results Consolidated income statementfor year ended 31 March 2007 Note 2007 2006 £000 £000 Revenue 1 131,946 117,282Cost of sales (97,224) (88,150) Gross profit 34,722 29,132Other operating income 220 238Distribution expenses (2,868) (3,774) -------------------------- ------ --------- ----------Administrative expenses before the following (22,336) (19,218)items:Goodwill impairment - (786)IFRS2 Charge (213) (121)Intangible amortisation (274) (121)Restructuring costs 2 (2,894) (2,108)-------------------------- ------ --------- ---------- Total administration costs (25,717) (22,354) Operating profit 2 6,357 3,242Financial income 144 54Financial expenses (1,175) (743) Net financing costs (1,031) (689)Share of profit of associate 100 - Profit before tax 5,426 2,553Taxation 3 (1,453) (1,115) Profit for the year 3,973 1,438(attributable to equity shareholders of theParent Company) Earnings per shareBasic 8 4.70p 1.86pDiluted 8 4.70p 1.85p DividendsFinal proposed 2007 - 1.66p (2006: 1.48p) 1,406 1,249Interim paid 2007 - 0.77p (2006: 0.73p) 650 616 All amounts in the income statement are derived from continuing operations forthe current and prior year. Trifast plc Preliminary Results Statements of recognised income and expensefor year ended 31 March 2007 Group Company Note 2007 2006 2007 2006 £000 £000 £000 £000 Foreign exchange translation (1,511) 1,470 - -differencesNet gain on hedge of net investment inforeign 14 4 - -subsidiary Net (expense)/income recogniseddirectly in 7 (1,497) 1,474 - -equity Profit for the year 7 3,973 1,438 2,449 893 Total recognised income for the year 7 2,476 2,912 2,449 893 Trifast plc Preliminary Results Balance sheetsat 31 March 2007 Note Group Company 2007 2006 2007 2006 £000 £000 £000 £000Non-current assetsProperty, plant and equipment 8,324 9,208 2,776 2,887Intangible assets 23,316 24,591 16 29Investments in associates 2,836 - 2,736 -Equity investments - - 28,920 27,828Deferred tax assets 350 573 - - Total non-current assets 34,826 34,372 34,448 30,744 Current assetsStocks 4 25,611 25,123 - -Trade and other receivables 28,109 30,070 4,088 3,807Cash and cash equivalents 5 6,757 6,524 5,256 5,208 Total current assets 60,477 61,717 9,344 9,015 Total assets 1 95,303 96,089 43,792 39,759 Current liabilitiesBank overdraft 5 287 272 3,187 1,513Other interest-bearing loans and 6 2,795 3,008 1,696 1,764borrowingsTrade and other payables 24,181 24,404 2,749 1,033Tax payable 192 365 - -Contingent consideration - 562 - 562Deferred consideration - 2,000 - 2,000Provisions 1,624 242 475 - Total current liabilities 29,079 30,853 8,107 6,872 Non-current liabilitiesOther interest-bearing loans and 6 16,394 15,950 13,047 10,989borrowingsProvisions 1,096 1,215 - -Deferred tax liabilities 509 826 189 314 Total non-current liabilities 17,999 17,991 13,236 11,303 Total liabilities 1 47,078 48,844 21,343 18,175 Net assets 1 48,225 47,245 22,449 21,584 Equity attributable to equityholders ofthe parentShare capital 7 4,236 4,219 4,236 4,219Share premium 7 12,046 11,873 12,046 11,873Reserves 7 (626) 871 2,786 2,786Retained earnings 7 32,569 30,282 3,381 2,706 Total equity 7 48,225 47,245 22,449 21,584 These financial statements were approved by the board of Directors on 18th June2007. Trifast plc Preliminary Results Cash flow statementsfor year ended 31 March 2007 Note Group Company 2007 2006 2007 2006 £000 £000 £000 £000Cash flows from operatingactivitiesProfit for the year 3,973 1,438 2,449 893Adjustments for:Depreciation, amortisation andimpairment 1,445 2,124 138 125Financial income (144) (54) (312) (186)Financial expense 1,175 743 791 383Gain on sale of property, plantand (7) (24) - -equipment and investmentsDividends received - - (5,550) (5,000)Write-off investment - - - 1,852Equity settled share-basedpayment 213 121 125 84expensesProfit from Associate (100) - - -Taxation 1,453 1,115 (123) 18 Operating profit before changesin working capital 8,008 5,463 (2,482) (1,831)and provisionsChange in trade and otherreceivables 973 (691) (280) (37)Change in stock (1,066) 1,073 - -Change in trade and otherpayables 72 (50) 35 24Change in provisions 1,262 1,243 475 - Cash generated from theoperations 9,249 7,038 (2,252) (1,844)Tax paid (1,668) (1,738) - - Net cash from operatingactivities 7,581 5,300 (2,252) (1,844) Cash flows from investingactivitiesProceeds from sale of property,plant and 64 17 - -equipmentInterest received 145 52 311 186Proceeds from sales ofinvestments - 144 - -Acquisition of subsidiary andassociates, (4,761) (16,719) (4,850) (14,892)net of cash acquiredAcquisition of property, plantand equipment (683) (1,150) (14) (126)Dividends received - - 5,550 5,000 Net cash from investingactivities (5,235) (17,656) 997 (9,832) Cash flows from financingactivitiesProceeds from the issue of sharecapital 7 190 8,274 190 8,274Expenses for issue of sharecapital 7 - (375) - (375)Proceeds from new loan 3,799 11,200 3,799 11,200Repayment of borrowings (2,810) (2,103) (1,741) (947)Dividends paid 7 (1,899) (1,630) (1,899) (1,630)Interest paid (1,090) (618) (720) (241) Net cash from financing activities (1,810) 14,748 (371) 16,281 Net change in cash and cashequivalents 536 2,392 (1,626) 4,605Cash and cash equivalents at 1April 6,252 3,622 3,695 (910)Effect of exchange ratefluctuations on (318) 238 - -cash heldCash and cash equivalents at 31March 5 6,470 6,252 2,069 3,695 Trifast plc Preliminary Results NOTES 1. Segmental analysis Segment information, as discussed above, is presented in the consolidatedfinancial statements in respect of the Group's geographical segments. Thisreflects the Group's management and internal reporting structure. Inter-segment pricing is determined on an arm's length basis. Segment results, assets and liabilities include items directly attributable to asegment as well as those that can be allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the period toacquire segment assets that are expected to be used for more than one period. Geographical segments The Group is comprised of the following main geographical segments: Europe/America: includes UK, Norway, Sweden, France, Hungary, Southern Ireland, Holland, Turkey, Poland, Los Angeles and MexicoAsia: includes Malaysia, China, Singapore and Taiwan In presenting information on the basis of geographical segments, segment revenueand segment assets are based on the geographical location of our entities acrossthe world. Europe/USA Asia Central Group 2007 2006 2007 2006 2007 2006 2007 2006 £000 £000 £000 £000 £000 £000 £000 £000Revenue*Revenue fromexternal 106,307 96,132 25,639 21,150 - - 131,946 117,282customersInter segmentrevenue 4,664 5,082 3,543 4,033 - - 8,207 9,115 Total revenue 110,971 101,214 29,182 25,183 - - 140,153 126,397 Segmentresult 6,057 3,856 5,752 4,022 (2,184) (1,621) 9,625 6,257beforeitems listedbelowGoodwillimpairment - (786) - - - - - (786)Intangibleamortisation (274) (121) - - - - (274) (121)Restructuringcosts (2,324) (2,108) - - (570) - (2,894) (2,108) Operatingprofit/(loss) 3,459 841 5,752 4,022 (2,754) (1,621) 6,457 3,242beforefinancingcostsNet financingcosts - - - - - - (1,031) (689) Profit onordinary 5,426 2,553activitiesbeforetaxationTaxation (1,453) (1,115) Profit forthe 3,973 1,438year Assets andliabilitiesSegment 59,667 70,003 24,744 24,056 10,892 2,030 95,303 96,089assetsSegmentliabilities (18,892) (27,178) (8,521) (9,997) (19,665) (11,669) (47,078) (48,844) Segment netassets/ 40,775 42,825 16,223 14,059 (8,773) (9,639) 48,225 47,245(liabilities) 1 Segmental analysis (continued) *Of the Asian external revenue, £4.9 million was sold into the American marketand £1.5 million sold into the European market. There was no material difference in the European and American regions betweenthe external revenue based on location of the entities and the location of thecustomers. Revenue is derived solely from the manufacture and logistical supply ofindustrial fasteners and category 'C' components and therefore considered to beonly one business segment. The share of the Associate Techfast (based in Malaysia) has been included in theAsia segment and not shown separately. Europe Asia America Central Group 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000CashflowsOperating activitiesSegmentcashflow 7,831 5,165 1,234 1,813 200 181 (1,684) (1,859) 7,581 5,300 Investing activitiesSegmentcashflow 686 (2,050) (791) (580) (9) (27) (5,121) (14,999) (5,235) (17,656) Financing activitiesSegmentcashflow (997) (1,513) (257) (8) (186) (12) (370) 16,281 (1,810) 14,748 Capital expenditureSegmentcashflow 345 239 315 758 9 27 14 126 683 1,150 2 Expenses and auditors' remuneration Included in profit for the year are the following: 2007 2006 £000 £000 Depreciation 1,171 1,217Amortisation 274 121Impairment loss on goodwill - 786Forex (gains)/losses (47) 71Restructuring costs - included in administrative expenses 2,894 2,108 Restructuring costs comprise £1.4 million redundancy payments, £0.4 million forcompensation of loss of office and £1.1 million other restructuring costs,largely the result of the closure of our French site. Auditors' remuneration: 2007 2006 £000 £000 Audit of these financial statements 42 43Audit of financial statements of subsidiaries pursuant tolegislation 183 207Other services relating to taxation 65 61Services relating to corporate finance transactions entered intoby - 267thecompanyAll other services 28 26 Auditors' remuneration for services relating to corporate finance transactionsof £nil (2006: £267,000) have been included in the consideration paid onacquisition of subsidiaries. 3 Taxation Recognised in the income statement 2007 2006 £000 £000Current UK tax expenseCurrent year 300 26Double taxation relief (103) (26)Adjustments for prior years 3 (39) 200 (39) Current tax on foreign income for the period 1,431 1,199Adjustments for prior years (92) (35) 1,339 1,164 Total current tax 1,539 1,125Deferred tax expenseOrigination and reversal of temporary differences (26) 9Adjustments for prior years (60) (19) (86) (10) Total tax in income statement 1,453 1,115 Reconciliation of effective tax rate and tax expense 2007 ETR 2006 ETR £000 % £000 % Profit before tax 5,426 2,553 Tax using the UK corporation tax rate of 30% 1,628 30 766 30(2006: 30%)Goodwill impairment - - 236 9Non-deductible expenses 340 6 465 18IFRS2 Share Option Charge (73) (1) 51 2Associate Tax (30) - - -Deferred tax assets not recognised 548 10 193 8Different tax rates on overseas earnings (811) (15) (503) (20)Over provided in prior years (149) (3) (93) (4) Total tax in income statement 1,453 27 1,115 43 4 Stocks Group 2007 2006 £000 £000 Raw materials and consumables 1,297 860Work in progress 637 663Finished goods and goods for resale 23,677 23,600 25,611 25,123 5 Cash and cash equivalents/bank overdrafts Group Company 2007 2006 2007 2006 £000 £000 £000 £000 Cash and cash equivalents per 6,757 6,524 5,256 5,208balance sheetBank overdrafts per balance sheet (287) (272) (3,187) (1,513) Cash and cash equivalents per 6,470 6,252 2,069 3,695cash flow statements Overdrafts are secured by an unlimited multilateral guarantee between the UKtrading companies. 6 Other interest-bearing loans and borrowings This note provides information about the contractual terms of the Group andCompany's interest-bearing loans and borrowings. Current Non-CurrentInitial Loan ValueCompany Rate Maturity 2007 2006 2007 2006 £'000 £'000 £'000 £'000 Acquisition Libor +0.95% 2007 36 76 - 38S$2.15mAcquisition Libor +0.95% 2008 176 199 88 299S$3.45mAcquisition Libor +0.90% 2008 195 195 98 293£1.95mAcquisition Libor +0.95% 2009 217 222 272 499SEK30mAcquisition Libor +0.91% 2012 1,072 1,072 12,589 9,860£11.2m 1,696 1,764 13,047 10,989 Other GroupAcquisition Libor +0.80% 2011 1,032 1,167 3,347 4,951$21.78mFunding $0.25m Libor +2% 2007 61 69 - -Funding $0.10m Fixed 8% 2009 6 8 - 10 1,099 1,244 3,347 4,961 Total Group 2,795 3,008 16,394 15,950 All the bank loans, with the exception of the $0.25 million (funded inSingapore) and £0.10 million (funded in America) loans included in the tableabove are secured by an unlimited multilateral guarantee between the UK tradingcompanies. 7 Capital and reserves Reconciliation of movement in capital and reserves - Group Share Share Translation Revaluation Retained Total capital premium reserve Reserve Earnings equity £000 £000 £000 £000 £000 £000 Balance at 1April 2005 3,595 4,598 (1,068) 465 30,353 37,943Totalrecognisedincome andexpense - - 1,474 - 1,438 2,912Issue of 624 7,650 - - - 8,274sharesShare issueexpenses - (375) - - - (375)Equity-settledshare basedpayment - - - - 121 121transactionsDividends - - - - (1,630) (1,630) Balance at 31March 2006 4,219 11,873 406 465 30,282 47,245 Balance at 1April 2006 4,219 11,873 406 465 30,282 47,245Totalrecognisedincome andexpense - - (1,497) - 3,973 2,476Issue of 17 173 - - - 190sharesEquity-settledshare basedpayment - - - - 213 213transactionsDividends - - - - (1,899) (1,899) Balance at 31March 2007 4,236 12,046 (1,091) 465 32,569 48,225 The revaluation reserve relates to properties revalued prior to date oftransition to IFRS. The translation reserve comprises all foreign exchange differences arising fromthe translation of foreign operations, as well as from the translation ofliabilities that hedge the Company's net investment in foreign subsidiaries. Reconciliation of movement in capital and reserves - Company Share Share Merger Revaluation Retained Total capital premium reserve reserve earnings equity £000 £000 £000 £000 £000 £000 Balance at 1 April2005 3,595 4,598 2,393 393 3,367 14,346Total recognisedincome and expense - - - - 893 893Issue of shares 624 7,650 - - - 8,274Share issueexpenses - (375) - - - (375)Equity-settledshare basedpayment - - - - 76 76transactionsDividends - - - - (1,630) (1,630) Balance at 31March 2006 4,219 11,873 2,393 393 2,706 21,584 Balance at 1 April2006 4,219 11,873 2,393 393 2,706 21,584Total recognisedincome and expense - - - - 2,449 2,449Issue of shares 17 173 - - - 190Equity-settledshare basedpayment - - - - 125 125transactionsDividends - - - - (1,899) (1,899) Balance at 31March 2007 4,236 12,046 2,393 393 3,381 22,449 7 Capital and reserves (continued) The merger reserve has arisen under Section 131 Companies Act 1985 and is anon-distributable reserve. The revaluation reserve relates to properties revalued prior to date oftransition to IFRS. Share capitalin thousands of shares Ordinary shares 2007 2006 000 000 On issue at 1 April 84,380 71,892Issued for cash 328 12,488 On issue at 31 March - fully paid 84,708 84,380 2007 2006 £000 £000Allotted, called up and fully paidOrdinary shares of 5p each 5,000 5,000 Allotted, called up and fully paidOrdinary shares of 5p each 4,236 4,219 During the year 327,561 ordinary shares of 5p were issued upon the exercising ofEmployee Share Options. 28,366 SAYE options were granted on 1 October 2002, atan exercise price of £0.50 per share and 59,195 SAYE options were granted on 1October 2003 at an exercise price of £0.60. 190,000 Executive options weregranted on 31st July 2002, at an exercise price of £0.50 per share and 50,000Executive options were granted on 2nd July 2003 at an exercise price of £0.65per share. The holders of ordinary shares are entitled to receive dividends as declaredfrom time to time and are entitled to one vote per share at meetings of theCompany. Dividends During the year the following dividends were declared and paid by the Group. 2007 2006 £000 £000 Final paid 2006 - 1.48p (2005: 1.41p) per qualifying ordinaryshare 1,249 1,014Interim paid 2007 - 0.77p (2006: 0.73p) per qualifyingordinary share 650 616 1,899 1,630 After the balance sheet date a final dividend of 1.66p per qualifying ordinaryshare (2006: 1.48p) was proposed by the Directors. These dividends have not beenprovided for. 2007 2006 £000 £000 Final 2007 - 1.66p (2006: 1.48p) per qualifying ordinary share 1,406 1,249 8 Earnings per share Basic earnings per share The calculation of basic earnings per share at 31 March 2007 was based on theprofit attributable to ordinary shareholders of £3,973,000 (2006: £1,438,000)and a weighted average number of ordinary shares outstanding during the yearended 31 March 2007 of 84,459,931 (2006: 77,516,115), calculated as follows: Weighted average number of ordinary shares 2007 2006 Issued ordinary shares at 1 April 84,380,474 71,891,969Effect of shares issued 79,457 5,624,146 Weighted average number of ordinary shares at 31March 84,459,931 77,516,115 Diluted earnings per share The calculation of diluted earnings per share at 31 March 2007 was based onprofit attributable to ordinary shareholders of £3,973,000 (2006: £1,438,000)and a weighted average number of ordinary shares outstanding during the yearended 31 March 2007 of 84,584,980 (2006: 77,639,682), calculated as follows: Weighted average number of ordinary shares (diluted) 2007 2006 Weighted average number of ordinary shares at 31March 84,459,931 77,516,115Effect of share options on issue 125,049 123,567 Weighted average number of ordinary shares (diluted)at 31 March 84,584,980 77,639,682 The average market value of the Company's shares for the purposes of calculatingthe diluted effect of share options was based on quoted market prices for theperiod that the options were outstanding. 2007 2006 EPS EPS Earnings Basic Diluted Earnings Basic Diluted £000 £000Profit for thefinancial 3,973 4.70p 4.70p 1,438 1.86p 1.85pYearAdjustments:Goodwill impairment - - - 786 1.01p 1.01pRestructuring costs 2,894 3.43p 3.42p 2,108 2.72p 2.72pTax charge onadjusted (698) (0.83p) (0.83p) (632) (0.82p) (0.82p)Items 6,169 7.30p 7.29p 3,700 4.77p 4.76p The 'Adjusted diluted' earnings per share is detailed in the above table. In theDirectors' opinion, this best reflects the underlying performance of the Groupand assists in the comparison with the results of earlier years. 9 The financial information in this announcement which was approved by the Boardof Directors and does not constitute the Company's statutory accounts for theyears ended 31 March 2006 or 2007 but is derived from those accounts. Statutoryaccounts for 2006 have been delivered to the Registrar of Companies and thosefor 2007 will be delivered following the Company's Annual General Meeting. Theauditors have reported on those accounts; their reports were unqualified and didnot contain statements under Section 237(2) of the Companies Act 1985. This preliminary announcement has been prepared in accordance with theaccounting policies adopted under IFRS. The disclosures required by IFRS 1"first-time adoption" of International Financial Reporting Standards" concerningthe transition from UK GAAP can be found in our interim report for 2005, a copyof which can be found on our website www.trifast.com. 10 This statement is not being posted to shareholders. The Report & Accounts forthe year ended 31 March 2007 will be posted to shareholders in July 2007.Further copies will be available from Penny Williams at the Company's RegisteredOffice: Trifast House, Bellbrook Park, Uckfield, East Sussex, TN22 1QW. 11 The Annual General Meeting will be held on 27 September 2007 at 12.00 noon,at the Company's Registered Office as above. This information is provided by RNS The company news service from the London Stock Exchange