"The UK has gained by far the most benefit from the determined focus on self-help initiatives"

Mark Belton Group Finance Director

UK Revenue

UK Operating Profit

Arrow up51%

Number of employees413
Site locations9

Pictured: TR Sweden's new facility

The Group's finance review shows the dramatic change in fortune for TR UK and the rest of Europe and throughout, I have enjoyed fantastic support, enthusiasm and sheer hard work from location and business teams.

Communication of our goals and objectives has been key. For each of the past two financial years through presentations to staff at all European locations, we made the focus of attention on the important issues. The theme for 2011-12 was Focus on Sales Profit – Cash, 2012-13 was the company wide adoption of the Pareto Principle the 80/20 rule. Inspiration for these presentations was not original, the first, a particular hero of mine, John Winkler, and the second, an Italian born in the 19th Century, Vilfredo Pareto.

The first theme highlighted that everyone with the Company can influence the sales effort as all of us are 'ambassadors' of the TR brand and the manner with which they deal with customers and suppliers alike affects the image and reputation of the Company. Everyone can look for opportunities to remove unnecessary costs and wasteful activities. Also that no matter how small, improvements can make a big difference.

John Winkler brilliantly illustrated this using a business with the following cost model of sales of say £100 million – variable costs of 50%, fixed costs of 40%, giving a net profit of 10%.

This is shown below with the result of sales increasing by 1% and fixed costs down 1%, giving a 20% increase in profit.

TR's results reflect the work done to manage the existing business better.

Equally important in this period of recovery has been the generation of cash. Our people are constantly being reminded that profit does not equal cash. Good cash collection depends on good customer relationship management and effective cash collection terms. TR has both quality CRM and finance staff.

The second year's presentation introduced the 80/20 Pareto Principle. Not a new idea, although I have found (outside of TR) few people knew of Pareto.

It is a philosophy that directs everyone to what is important. 80% of sales come from 20% of customers – look after them – 20% of what you do will yield 80% of the total outcome and so forth. 'Let us not be 'busy fools' but use our time wisely.'

Investing for the future

Whilst optimising our trading position, a lot of activity and resource has been to invest in the future:

Pictured:
Recently launched plastic cable products

  • product launches most notably, Plastic Fastener Cable Management Products, spacer and electronic hardware
  • a number of industry specialists and sales engineers have been recruited to accelerate our sales activity
  • a major in-house Management Development programme for all location managers was implemented
  • in-house apprenticeships have proved a great way to induct new colleagues

In the early part of this new financial year we have successfully secured a number of new licences including the global licence agreement with the Philips Screw Company for ACR (Anti Camout Recess).

"Diversifying beyond the electronics and appliances sectors into the automotive assemblers is providing a stable and forward revenue stream"

Geoff BuddTR Europe Managing Director

View information about Business Performance

Convention logos two

Europe Revenue

Arrow up8%

Europe Operating Profit

Arrow up114%

Number of employees96
Site locations6

Pictured:
Dave Fisk, Managing Director TRF

Pictured:
Maria Johnson, TRF Finance Director

Pictured:
Stevie Meiklem, TRF Purchasing & Operations Director

Pictured:
Michelle Horscroft, Internal Sales Manager TR Direct

TR already owns the UK trademark, Pozidriv, and European marque, Pozi. Philips, the inventors of the Philips Drive and Pozidriv have also developed a number of patented systems. The most exciting for us is MOTORQ Super which enables the manufacture of fasteners with up to 25% less material in the head enabling the advantage of weight reduction and less material use, both vital in achieving greater efficiency especially in automotive applications.

Finally in June 2013, and as part of the Group's planned succession strategy, we promoted a number of executives, including to the Board of TR Fastenings (TRF); this reflects the strength in depth we now have within the organisation – Dave Fisk, was appointed Managing Director; Stevie Meiklem, Purchasing & Operations Director, both have worked their way up the ranks of TR over many years whilst Maria Johnson, the newly appointed TRF Finance Director is extremely capable and brings to the trading business expertise from her previous senior roles before joining the business in November 2006.

At the time of writing, a very positive start to the current year has been achieved. There is much optimism with an abundance of new products to sell and new geographical territories and industries to explore. More on this is explained in Glenda Roberts' Global Sales and Business Development Report.

Lower cost base; securing significant new business at improved margins; steady profit growth across all regions

Personally, I would like to thank all of my colleagues throughout Europe for making this the most enjoyable time to work for this organisation.

Geoff Budd
TR Europe Managing Director