Trifast Regulatory News (TRI)

Date: Tuesday, 12 November 2013

Immediate release

Key Financials

Continuing operations

Change

HY2013

v

HY2012

HY Sept

2013

HY Sept

2012

Full year

31 March

2013

Ø Group revenue

+6.6%

£65.26m

£61.25m

£121.54m

Ø Gross profit %

+170bps

27.7%

26.0%

26.0%

Ø Underlying operating profit

+22.4%

£4.86m

£3.97m

£7.97m

Ø Underlying pre-tax profit

+26.4%

£4.55m

£3.60m

£7.25m

Ø Operating profit

+23.7%

£4.65m

£3.76m

£7.16m

Ø Pre-tax profit

+28.0%

£4.34m

£3.39m

£6.44m

Ø Adjusted diluted earnings per share

+27.8%

2.94p

2.30p

4.73p

Ø Basic earnings per share

+34.2%

3.06p

2.28p

4.39p

Ø Re-introduction of interim dividend

0.40p

-

0.80p

Ø Net debt

£3.55m

£7.70m

£5.20m

Ø Return on Capital employed (ROCE)

14.7%

12.6%

12.1%

Highlights

Ø Positive on-going organic results from TR's 'Continuous improvement' roll-out across the Group

Ø New products and licences gaining foothold

Ø New business gains add to TR Asia's positive recovery momentum

Ø Automotive Tier 1 continues to expand

Ø UK and Europe outperforming and USA gathering pace

Ø Investment in manufacturing plant planned in Asia

Ø Management confident in delivering future organic growth

Ø On-going assessment of earnings enhancing 'bolt-on' acquisitions

FULL STATEMENT ATTACHED

Results briefing will be held at 10.30 am:

12th Floor Boardroom, 125 Old Broad Street, London EC2N 1AR

Conference dial-in facility: on request, please contact +44 (0)7785 703523

For further details please contact:

Trifast plc

Malcolm Diamond MBE, Executive Chairman

Tel: +44 (0) 7979 518493

Jim Barker, Chief Executive

Tel: +44 (0)7769 934148

Mark Belton, Group Finance Director

+44 (0)7710 177459

Today : +44 (0) 20 7614 5900 (8am until 12noon)

Thereafter: +(0) 1825 747630

LSE Listing: Ticker: TRI FTSE index sector: FTSE Fledgling - Industrial Engineering

TooleyStreet Communications

IR & media relations

Fiona Tooley, Director

Today: Tel: +44 (0)7785 703523

fiona@tooleystreet.com

Arden Partners plc

Stockbroker & financial adviser

Adrian Trimmings

Katelin Kennish

+44 (0)20 7614 5920

For more information, please visit www.trfastenings.com.

Follow us:

Twitter: www.twitter.com/trfastenings

www.facebook.com/trfastenings:

www.linkedin.com/company/tr-fastenings

Group website: www.trifast.com

Market capitalisation: £89 million

Editor's Note

Trifast's trading business TR Fastenings is a leading international manufacturer and distributor of industrial fastenings to the assembly industries, with operations in Europe, the Americas and Asia.

Introduction

"40 years of Service innovation"

Having spent the last two financial years improving TR's operational processes to enhance margins, we are now, focused once again on top line growth. Sales engineers have been recruited and inducted to help drive our 'roll-out' into the many individual assembly sites of the multinationals that have already nominated TR as a 'Preferred Supplier'. Another major development in the industry is the trend for using fewer and lighter materials in manufacture - we are already a market leader with our extensive range of fixings and fasteners and our investment at the beginning of 2013 into a broad new range of plastic fasteners is proving to be progressively valuable in supporting our organic growth aspirations. Similarly, a recovery in sales of our TR Branded products to distributors in the UK and Mainland Europe is perhaps signalling a stronger macro-economic recovery.

TR has been at the forefront of the industry since it was founded and today, is regularly supplying around 150 million components daily to its 5,000-strong customer base, each with specific needs in both product and quality. Advances in technology and design combined with economic and environmental factors mean that a successful fastener company like TR has to be nimble enough to adapt its range and at the same time manage its customers' needs. Having celebrated 40 years of 'Service innovation' in June 2013, we are witnessing another exciting phase of development for the business.

Our key markets are recovering and the operational teams are out there taking advantage of the many opportunities which come their way; from our solid base, we will see TR continue to exploit and build its position within what is a fragmented market whilst growing organically; also over the medium term, a key objective for delivering further value to all stakeholders will be through selective acquisitions in key territories that enhance future earnings and open up new customers, markets and opportunities.

Half year business review

"Strong organic growth across TR"

The Directors are pleased to report that trading in the Group's regions of UK, Asia, Europe, and the USA continues to perform strongly. We have successfully gained a number of new contracts at solid margins and continue to add-value within existing customers and our key products. In addition we are planning to make further investment in more productive new manufacturing plant within our TR Asia operations; this will enable us to increase output within our existing factory footprint rather than by acquiring extra buildings which would prove to be more costly than first envisaged. New territories such as Korea, Russia and Thailand are adding opportunities to the Group. Our operating management group remain encouraged based on results to date and the major new business opportunities in the pipeline that TR sales teams are both creating and uncovering, in particular in the ASEAN and USA regions within our key sectors of Automotive and Electronics.

Half-year 2013 -key financials

"Strong growth over H2 year ended March 2013"

Group revenue in the first six months of the financial year was up 6.6% compared to the comparable half year 2012 with strong organic performances from TR UK (+11.1%), TR Europe (+9.7%), and TR USA (+13.2%). Comparable TR Asia's revenue overall was down 1.8% and reflects the loss of two component supply contracts which we highlighted in our last Annual results; however comparing the first half performance against the second half of last year, we have seen a very strong recovery of around 10.1% from TR Asia as it added a number of new business gains; TR UK, TR Europe and TR USA performances have also continued with strong growth over H2 year ended March 2013 of 7.9%, 4.7% and 22.5% respectively.

Group overheads in the Half-year as a percentage of sales stood at 20.2%, slightly ahead of the March 2013 level of 19.4% reflecting the increase in investment in our people and additional sales related activities across the TR network.

Underlying operating Group profit has increased by 22.4% to £4.86 million compared to the same period last year (HY2012: £3.97m). Gross margins continue to improve and during the first half period were reported at 27.7%, up from HY2012 of 26.0% (FY2013: 26.0%). Underlying pre-tax profit improved by 26.4% to £4.55 million (HY2012 £3.60m) and the Group's underlying EBITDA increased to £5.43 million (HY2012: £4.60m) and represents 8.3% of Group revenue (HY2012: 7.5%).

The taxation charge of £1.02 million (HY2012 £0.95m) is recognised based on the estimated weighted average annual Group's corporate tax rates. The estimated average tax rate used for HY2013 before prior year adjustments was 26% (HY2012: 28%).

Given the improvement in the Group's operating profit, the reduction in net assets due to foreign exchange translation and the further reduction in net debt, ROCE in the first half increased to 14.7% (FY2013 12.1%).

Basic earnings per share increased by 34.2% to 3.06 pence (HY2012: 2.28p; FY2013: 4.39p), whilst Adjusted diluted earnings per share increased 27.8% to 2.94 pence (HY2012: 2.30p; FY2013 4.73p).

Balance sheet, cash flow and working capital

"Strong cash flow continues"

Net assets were significantly impacted by foreign exchange translation, from Asia in particular, reducing the assets down by £3.50 million on March 2013 to £59.45 million (HY2012 £55.28m).

Strong cash flow continues to be a key objective within the Group. Cash generated from operations was at £3.36 million (HY2012 £2.49m; FY2013 £7.87m). Stocks increased in line with working capital requirements supporting new automotive contracts and organic business growth; net stock weeks have remained fairly stable at 20.1 weeks versus 20.0 weeks at the March 2013 year end and 20.3 weeks in the comparable 2012 interim period, we expect these levels to reduce as new business starts to flow through the system. The increase in sales has seen a corresponding rise in debtors however the business remains effective in its cash collection with minimal bad debts during the period under review.

During the first half, depreciation of £0.57 million was partially offset by capital expenditure of £0.31 million. As covered under the review, having revisited our ASEAN facilities programme we expect to see an increase in capital investment in machinery and plant within the Asian region which will enable us to improve productivity and increase operational efficiencies in the future.

Finance and banking facilities

"Net debt reduced further"

Net debt reduced in the Half year period by £1.65million to £3.55million (HY2012 £7.70m; FY2013 £5.20m) giving gearing of 6.0% (HY2012 13.9%; FY2013 8.6%); Cash and cash equivalents at the Half year period stood at £13.51 million (HY2012 £12.43m; FY2013 £10.55m).

The Group continues to operate well within its covenants and has adequate facilities with combined Asset Based Lending and Revolving Credit Facilities within the UK of c. £23.0 million. Net interest costs were lower at £0.31 million (HY2012: £0.37m; FY2013: £0.72m) with Net interest cover (defined as EBITDA to net interest, before one-off separately disclosed items) at 17.6 times (HY2012 12.4 times; FY2013 12.8 times).

Global market overview & TR strategy update

"Opportunities gaining momentum "

The 'World of Opportunity' is gaining momentum for specialist players like ourselves to be a strategic consolidator. Economic recovery is now visible across many markets and sectors and with our customers increasingly rationalising their supplier base TR is well placed in offering a global 'one stop' shop. Our focus remains in identifying strategic 'bolt-on' earnings enhancing self-managing businesses, niche expansion into a number of regions whilst adding further value to our customer offering through complementary new products to match advances in engineering technologies.

Current trading and the future

"Recovery in global markets sees TR trading ahead"

We are very reassured by the creditable organic performances achieved in the first half and the opportunities our teams are creating to secure additional growth for the remainder of the financial year and into 2015 and beyond; these combined with our 'self-help' and 'Continuous improvement' initiatives will continue to deliver positive gains. We are also very encouraged by the number of new products and licenses recently won which are gaining a foothold and this gives us confidence in our future ability to deliver more. The Board remains optimistic about trading across the Company's UK, Asian, European, and North American regions; buoyed by the current macro-economic recovery in a number of key global markets, in particular for us in the manufacturing and industrials sectors. The combination of these factors gives us confidence that we will now exceed our previous expectations.

However, we also recognise as a management team that to achieve our aspirations and take TR to the next level for all stakeholders we must look to add both organic and strategic growth through new products, sectors and territories to our existing global offering and underpin the many opportunities apparent within our existing and growing multinational portfolio.

We look forward to keeping you updated with developments as we focus on this strategy.

Dividend

"Underpins confidence in the TR model"

We are committed to a progressive dividend policy whilst balancing our investment in the business for the future benefit of all stakeholders, customers and colleagues alike. To underpin our confidence in our future, we are pleased to announce the re-introduction of an interim dividend. An interim dividend of 0.40 pence per share will be paid on 18 April 2014, to shareholders on the Register as at 22 November 2013. The shares will become ex-dividend on 20 November 2013.

Risks and Uncertainties

The Directors do not consider that the principal risks and uncertainties have changed since the publication in July 2013 of the Group's Annual Report for the year ended 31 March 2013 and a copy of these can be found on our website www.trifast.com.

No system can fully eliminate risk and therefore the understanding of operational risk is central to the management process within TR. The Group operates a system of internal control and risk management in order to provide assurance that we are managing risk whilst achieving our business objectives. Risk assessment reviews are regularly carried out by Management, with responsibilities for monitoring and mitigating personally allocated to a broad spread of individual managers. The review is analysed and discussed at Audit Committee meetings chaired by our Senior NED.

As with all businesses, the Group faces risks, with some not wholly within its control, which could have a material impact on the Group's performance and may affect its performance with actual results becoming materially different from both forecast and historic results. Although there are indications that the macro-economic climate is slowly improving, it is too soon in Management's opinion to assume that the worst is reliably over, and so continue to remain vigilant for any indications of a reversal that could adversely impact expected results going forward. Past and future acquisitions can also carry impairment risks on goodwill should there be a sustained downturn in trading within an acquired subsidiary.

The long-term success of the Group depends on the on-going review, assessment and control of the key business risks it faces.

Trifast plc: Responsibility Statement

We confirm that to the best of our knowledge:

(a) the Condensed Consolidated interim financial statements contained in this document have been prepared in accordance with International Accounting Standard 34 ("IAS 34"), "Interim Financial Reporting" as adopted by the European Union;

(b) the Half-yearly financial report for the six months ended 30 September 2013 contained in this document includes a fair review of the information required by the Financial Conduct Authority's Disclosure and Transparency Rules ("DTR") 4.2.7R (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year), and

(c) the interim management report includes a fair view of the information required by the DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last Annual Report that could do so.

By order of the Board

Malcolm Diamond MBE

Executive Chairman

Jim Barker

Chief Executive Officer

Mark Belton

Group Finance Director

11 November 2013

Notes

Six months

ended

30 September

2013

Six months

ended

30 September

2012

Year ended

31 March

2013

£000

£000

£000

Continuing operations

Revenue

65,264

61,248

121,544

Cost of sales

(47,203)

(45,350)

(89,969)

Gross profit

18,061

15,898

31,575

Operating income

142

216

486

Distribution expenses

(1,542)

(1,267)

(2,732)

Administrative expenses before separately disclosed items:

2

(11,801)

(10,877)

(21,358)

- IFRS 2 charge

(46)

(47)

(91)

- Intangible amortisation

(166)

(165)

(331)

- Restructuring costs

-

-

(389)

Total administrative expenses

(12,013)

(11,089)

(22,169)

Operating profit

4,648

3,758

7,160

Financial income

19

20

45

Financial expenses

(328)

(390)

(763)

Net financing costs

(309)

(370)

(718)

Profit before tax

4,339

3,388

6,442

Taxation

4

(1,017)

(954)

(1,734)

Profit for the period

(attributable to equity shareholders of the Parent Company)

3,322

2,434

4,708

Earnings per share (total)

 - Basic

6

3.06p

2.28p

4.39p

 - Diluted

6

2.90p

2.16p

4.18p

Six months

ended

30 September

2013

Six months

ended

30 September

2012

Year ended

31 March

2013

£000

£000

£000

Profit for the period

3,322

2,434

4,708

Other comprehensive (expense) / income:

Foreign currency translation differences

(3,495)

(158)

2,167

Other comprehensive (expense) / income recognised directly in equity, net of income tax

(3,495)

(158)

2,167

Total comprehensive (expense) / income recognised for the period

(attributable to equity shareholders of the Parent Company)

(173)

2,276

6,875

Unaudited results

six months ended 30 September 2013

Share

Capital

£000

Share

Premium

£000

Translation

Reserve

£000

Retained

Earnings

£000

Total

Equity

£000

Balance at 1 April 2013

5,412

18,427

11,971

24,612

60,422

Total comprehensive income for the period

Profit for the period

-

-

-

3,322

3,322

Other comprehensive expense

Foreign currency translation differences

-

-

(3,495)

-

(3,495)

Total other comprehensive expense

-

-

(3,495)

-

(3,495)

Total comprehensive (expense) / income for the period

-

-

(3,495)

3,322

(173)

Transactions with owners, recorded directly in equity

Issue of share capital

11

11

-

-

22

Share based payment transactions

-

-

-

46

46

Dividend payable

-

-

-

(868)

(868)

Total transactions with owners

11

11

-

(822)

(800)

Balance at 30 September 2013

5,423

18,438

8,476

27,112

59,449

Unaudited results

six months ended 30 September 2012

Share

Capital

£000

Share

Premium

£000

Translation

Reserve

£000

Retained

Earnings

£000

Total

Equity

£000

Balance at 1 April 2012

5,343

18,263

9,804

20,078

53,488

Total comprehensive income for the period

Profit for the period

-

-

-

2,434

2,434

Other comprehensive income

Foreign currency translation differences

-

-

(158)

-

(158)

Total other comprehensive expense

-

-

(158)

-

(158)

Total comprehensive (expense) / income for the period

-

-

(158)

2,434

2,276

Transactions with owners, recorded directly in equity

Share based payment transactions

-

-

-

47

47

Dividend payable

-

-

-

(534)

(534)

Total transactions with owners

-

-

-

(487)

(487)

Balance at 30 September 2012

5,343

18,263

9,646

22,025

55,277

Group

Notes

30 September

2013

£000

30 September

2012

£000

31 March

2013

£000

Non-current assets

Property, plant and equipment

12,170

13,094

13,360

Intangible assets

17,347

17,959

18,366

Deferred tax assets

966

1,256

966

Total non-current assets

30,483

32,309

32,692

Current assets

Stocks

30,940

30,333

30,439

Trade and other receivables

29,073

26,611

27,248

Cash and cash equivalents

7

13,680

12,429

10,750

Total current assets

73,693

69,373

68,437

Total assets

104,176

101,682

101,129

Current liabilities

Bank overdraft

7

171

-

195

Other interest-bearing loans and borrowings

8

13,711

15,118

11,334

Trade and other payables

22,912

22,005

21,029

Tax payable

2,012

1,146

1,424

Dividends payable

5

868

534

-

Provisions

410

191

700

Total current liabilities

40,084

38,994

34,682

Non-current liabilities

Other interest-bearing loans and borrowings

8

3,350

5,014

4,418

Provisions

793

1,033

701

Deferred tax liabilities

500

1,364

906

Total non-current liabilities

4,643

7,411

6,025

Total liabilities

44,727

46,405

40,707

Net assets

59,449

55,277

60,422

Equity

Share capital

5,423

5,343

5,412

Share premium

18,438

18,263

18,427

Reserves

8,476

9,646

11,971

Retained earnings

27,112

22,025

24,612

Total equity

59,449

55,277

60,422

Notes

Six months

ended

30 September

2013

£000

Six months

ended

30 September 2012

£000

Year

ended

31 March

2013

£000

Group

Cash flows from operating activities

Profit for the period

3,322

2,434

4,708

Adjustments for:

Depreciation, amortisation & impairment

735

791

1,586

Financial income

(19)

(20)

(45)

Financial expense

328

390

763

Loss / (gain) on sale of property, plant & equipment and investments

11

(15)

(14)

Equity settled share-based payment charge

46

47

91

Taxation charge

1,017

954

1,734

Operating cash inflow before changes in

 working capital and provisions

5,440

4,581

8,823

Change in trade and other receivables

(2,770)

(391)

(183)

Change in stocks

(1,622)

103

839

Change in trade and other payables

2,505

(987)

(969)

Change in provisions

(198)

(815)

(638)

Cash generated from operations

3,355

2,491

7,872

Tax paid

(724)

(802)

(1,427)

Net cash from operating activities

2,631

1,689

6,445

Cash flows from investing activities

Proceeds from sale of property, plant & equipment

3

15

18

Interest received

9

20

45

Acquisition of subsidiary, net of cash acquired

-

-

(1,389)

Acquisition of property, plant & equipment

(309)

(465)

(869)

Net cash used in investing activities

(297)

(430)

(2,195)

Cash flows from financing activities

Proceeds from the issue of share capital

22

-

233

Proceeds from new loan

2,543

1,369

-

Repayment of long term borrowings

(779)

(1,469)

(4,707)

Payment of finance lease liabilities

(50)

(92)

(178)

Dividends paid

-

(534)

Interest paid

(328)

(390)

(763)

Net cash from / (used in) financing activities

1,408

(582)

(5,949)

Net change in cash and cash equivalents

3,742

677

(1,699)

Cash and cash equivalents at start of period 1 April

10,555

11,798

11,798

Effect of exchange rate fluctuations on cash held

(788)

(46)

456

Cash and cash equivalents at end of period

7

13,509

12,429

10,555

2.

Underlying profit and separately disclosed items

Six months

ended

30 September

2013

£000

Six months

ended

30 September

2012

£000

Year ended

31 March

2013

£000

Underlying profit before tax

4,551

3,600

7,253

Separately disclosed items within administration expenses:

-IFRS 2 share-based payment charge

(46)

(47)

(91)

-Intangible amortisation

(166)

(165)

(331)

-Restructuring costs

-

-

(389)

Profit from continuing operations before tax

4,339

3,388

6,442

3.

Geographical operating segments: The Group is comprised of the following main geographical operating segments:

Ø UK

Ø Mainland Europe

includes Norway, Sweden, Hungary, Ireland, Holland and Poland

Ø USA

includes USA and Mexico

Ø Asia

includes Malaysia, China, Singapore, Taiwan, Thailand and India

In presenting information on the basis of geographical operating segments, segment revenue and segment assets are based on the geographical location of our entities across the world, and are consolidated into the four distinct geographical regions, which the Board use to monitor and assess the Group.

Segment revenue and results under the primary reporting format for the six months ended 30 September 2013 and 2012 are disclosed in the table below:

September 2013

UK

Mainland

Europe

USA

Asia

Common

Costs

Total

£000

£000

£000

£000

£000

£000

Revenue*

Revenue from external customers

31,345

12,274

1,482

20,163

-

65,264

Inter segment revenue

796

230

56

2,555

-

3,637

Total revenue

32,141

12,504

1,538

22,718

-

68,901

Underlying Operating result

2,585

799

176

2,584

(1,284)

4,860

Net financing costs

(185)

(14)

-

(83)

(27)

(309)

Underlying Segment result

2,400

785

176

2,501

(1,311)

4,551

Separately disclosed items (see note 2)

Profit before tax

Specific disclosure items

Depreciation and amortisation

71

25

7

473

159

735

Assets and liabilities

Segment assets

37,383

10,760

1,514

48,648

5,871

104,176

Segment liabilities

(26,500)

(2,737)

(111)

(12,134)

(3,245)

(44,727)

September 2012

UK

Mainland

Europe

USA

Asia

Common

Costs

Total

£000

£000

£000

£000

£000

£000

Revenue*

Revenue from external customers

28,218

11,185

1,309

20,536

-

61,248

Inter segment revenue

898

355

68

2,105

-

3,426

Total revenue

29,116

11,540

1,377

22,641

-

64,674

Underlying Operating result

1,511

429

230

2,661

(861)

3,970

Net financing costs

(225)

(1)

(1)

(104)

(39)

(370)

Underlying Segment result

1,286

428

229

2,557

(900)

3,600

Separately disclosed items (see note 2)

Profit before tax

Specific disclosure items

Depreciation and amortisation

71

24

7

531

158

791

Assets and liabilities

Segment assets

35,008

10,189

1,077

50,291

5,117

101,682

Segment liabilities

(25,710)

(3,042)

(130)

(14,973)

(2,550)

(46,405)

4.

Taxation

Six months

ended

30 September

2013

Six months

ended

30 September

2012

Year ended

31 March

2013

£000

£000

£000

Current tax on income for the period

UK tax

294

277

5

Foreign tax

842

665

1,192

Deferred tax expense

-

-

434

Adjustments in respect of prior years

(119)

12

103

1,017

954

1,734

5.

Dividends

The dividend payable of £0.87 million represents the dividend recommended for the year ended 31 March 2013, approved by shareholders at the AGM on 17 September and paid to shareholders on the Register as at 5 July 2013, on 18 October 2013.

6.

Earnings per share

The calculation of earnings per 5 pence ordinary share is based on profit for the period after taxation and the weighted average number of shares in the period of 108,439,566 (HY2012: 106,867,708; FY2013: 107,324,310).

The calculation of the fully diluted earnings per 5 pence ordinary share is based on profit for the period after taxation. In accordance with IAS 33 the weighted average number of shares in the period has been adjusted to take account of the effects of all dilutive potential ordinary shares. The number of shares used in the calculation amount to 114,411,329 (HY2012: 112,894,288; FY2013: 112,586,386).

The adjusted diluted earnings per share for the six months ended 30 September 2013 is as follows:

Six months

ended

30 September

2013

£000

Six months

ended

30 September

2012

£000

Year ended

31 March

2013

£000

Profit for the period

3,322

2,434

4,708

Intangible amortisation

166

165

331

Restructuring costs

-

-

389

IFRS 2 Share option

46

47

91

Tax adjustment

(170)

(51)

(195)

Adjusted profit

3,364

2,595

5,324

Basic EPS

3.06p

2.28p

4.39p

Diluted Basic EPS

2.90p

2.16p

4.18p

Adjusted Diluted EPS

2.94p

2.30p

4.73p

7.

Cash and cash equivalents at end of period

At

30 September

2013

£000

At

30 September

2012

£000

At

31 March

2013

£000

Cash and cash equivalents

13,680

12,429

10,750

Bank overdraft

(171)

-

(195)

Net cash and cash equivalents per cash flow statements

13,509

12,429

10,555

8.

Analysis of net debt

At

30 September

2013

£000

At

30 September

2012

£000

At

31 March

2013

£000

Cash and cash equivalents

13,680

12,429

10,750

Bank overdraft

(171)

-

(195)

Net cash and cash equivalents

13,509

12,429

10,555

Debt due within one year

(13,711)

(15,118)

(11,334)

Debt due after one year

(3,350)

(5,014)

(4,418)

(17,061)

(20,132)

(15,752)

Total

(3,552)

(7,703)

(5,197)

Reconciliation of net cash flow to movement in net debt

Six months

ended

30 September

2013

£000

Six months

ended

30 September

2012

£000

Year ended

31 March

2013

£000

Net increase/(decrease) in cash and cash equivalents

3,742

677

(1,699)

Net (increase)/decrease in borrowings

(1,714)

192

4,885

2,028

869

3,186

Exchange rate differences

(383)

(162)

27

Movement in Net Debt

1,645

707

3,213

Opening Net Debt

(5,197)

(8,410)

(8,410)

Closing Net Debt

(3,552)

(7,703)

(5,197)

Electronic Communications

The Company is not proposing to bulk print and distribute hard copies of this Half-yearly financial report for the six months ended 30 September 2013 unless specifically requested by individual shareholders.

The Board believes that by utilising electronic communication it delivers savings to the Company in terms of administration, printing and postage, and environmental benefits through reduced consumption of paper and inks, as well as speeding up the provision of information to shareholders.

News updates, Regulatory News, and Financial statements, can be viewed and downloaded from the Group's website, www.trifast.com. Copies can also be requested via corporate.enquiries@trifast.com or, in writing to, The Company Secretary, Trifast plc, Trifast House, Bellbrook Park, Uckfield, East Sussex, TN22 1QW

Cautionary Statement

The Half-yearly financial report has been prepared for the shareholders of the Company, as a body, and no other persons. Its purpose is to assist shareholders of the Company to assess the strategies adopted by the Company and the potential for those strategies to succeed and for no other purpose. The Half-yearly financial report contains forward looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries, sectors and markets in which the Group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. No assurances can be given that the forward looking statements in this Half-yearly financial report will be realised. The forward looking statements reflect the knowledge and information available at the date of preparation.

Independent review report by KPMG Audit Plc to Trifast plc

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the Half-yearly financial report for the six months ended 30 September 2013 which comprises the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Financial Position, the Consolidated Statement of Cash Flows and the related explanatory notes. We have read the other information contained in the Half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This Report is made solely to the Company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this Report, or for the conclusions we have reached.

Directors' responsibilities

The Half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half-yearly financial report in accordance with the DTR of the UK FCA.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this Half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the Condensed Consolidated set of financial statements in the Half-yearly financial report for the six months ended 30 September 2013 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FCA.

Martin Newsholme

for and on behalf of KPMG Audit Plc

Chartered Accountants

1 Forest Gate

Brighton Road, Crawley

West Sussex RH11 9PT

11 November 2013