Trifast, the manufacturer and distributor of industrrial fasteners and components, came in yesterday with a flat underlying pretax profit of £8.81 million on revenue down by seven per cent.
After exceptionals and amortisation of intangibles pre-tax profit was £6 million, up from £5.4 million a year earlier on revenue of £122.36 million, down from £131,95 million.
During the year the company took decisions not to supply certain customers or market sectors with an impact that the actions resulted in the operating profit moving to a seven-year high of £7.14 million.
The company sought out new business opportunities and more than £500,000 had been invested on key skills training and development of staff.
In a business review, Steve Auld and chief executive officer and Stuart Lawson, chief financial officer, said the business was now focused on two major geographical areas, Europe and Asia and there was now smaller business activity in the United States.
An important platform for the new Trifast strategy was the introduction of a business sales team and it would seek out new oppportunities in the automotive, IT, electronics, telecommunications and home appliance sectors.
The review said the main area of focus during the next trading quarters would be how the business managed price increase pressures.
“The price increases from raw materials, energy and fuel are running at levels that we have not experienced before in our industry but we are well-equipped as we have long standing relationships in existence with our sales team,” stated the review.
Trifast had also identified new business opportunities in the Middle East and Africa.
In Asia after 13 years of businbess operations the challenge was to keep pace with its expanding sub-contract manufacturers as they opened new factory facilities.
“Sub-contractors are constantly in search of new low cost economies in which they can open new production facilities producing high volume consumer electronics,” says the review. “This challenge has become a prime focus for our own Asian factories and created a number of opportunities for Trifast.
The company, which will hold it annual general meeting on 23 September, is looking at plans for potential new operations in India and Vietnam.