Trifast plc (LON: TRI), a specialist in engineered fastenings, has released a trading update for the six months ended September 30, 2025, revealing a revenue decline amidst challenging market conditions.
Despite the dip, the company maintains its full-year expectations, citing benefits from operational improvements.
Revenues for H1 FY26 decreased by approximately 6.4% year-on-year, primarily due to softer demand and tariff disruption. The UK Automotive sector experienced “unprecedented challenges,” further impacting revenue.
However, growth in Smart Infrastructure, particularly in North America, partially offset these declines.
Underlying gross margin improved by 144 basis points to 28.8%, with margin management being the most significant contributor. Underlying EBIT margin also saw improvement, rising from 6.0% in H1 FY25 to 6.3% (CER).
Excluding the impact of unusually high exchange rate movements due to USD weakening, the underlying EBIT margin improved further, from 6.5% to 7.1%.
Trifast continues to benefit from self-help actions, realizing cost savings through a 10% reduction in non-operating headcount.
The successful consolidation of UK operations into the National Distribution Centre in the West Midlands also contributed to these savings.
Pre-IFRS 16 net debt increased modestly to £17.4m as of September 30, 2025, compared to £15.4 million in H1 FY25. This increase is attributed to planned additional investment in digital and technology strategic projects. Liquidity remains strong, with over £78.0m of the £120.0m banking facilities undrawn, and covenant leverage remains below 1.0x.
The Board's current full-year expectations remain unchanged despite external market challenges. The company's strategic focus remains on self-help levers, particularly those driving working capital improvements and margin enhancement.
Trifast remains confident in delivering its medium-term targets, including achieving an underlying EBIT margin of greater than 10%. This confidence is underpinned by the substantial groundwork already completed to make Trifast a more efficient, professional, and data-led organisation.
The Group's Half-year report for the period ended 30 September 2025 is scheduled to be published on Tuesday, 18 November 2025.
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