Arden upgrades Trifast

16th Nov 2010 14:33

Trifast's interim figures have prompted house broker Arden to increase its full year profit forecast. Arden has moved its 2010-11 profit forecast from £3m to £3.5m, and its 2011-12 forecast from £3.8m to £4m. Even though trading is better than expected fasteners manufacturer and distributor Trifast's management says that there is still more that can be done to improve the company's logistics and software as well as operations in Europe and the US. Generally, though, Trifast is upbeat about its prospects and its opportunities to grow in automotive. Revenues jumped from £39.9m to £52m in the six months September 2010. This represents a continued half-by-half recovery with revenues 13% higher than the second half of last year. The same is true of profit where underlying breakeven in first half of last year was followed by a £920,000 profit in the second half. The latest underlying profit is £1.72m.The UK returned to profit and Asia almost doubled its contribution. Mainland Europe and the US remain loss-making. Restocking meant that there was a cash outflow in the first half. Net debt is £5.63m and it should stay around the £5m level even though working capital requirements will increase on the back of expected growth.