Bellbrook Park, Uckfield,
East Sussex, TN22 1QW
Tel: +44 (0)1825 747366
Fax: +44 (0)1825 747368
What a difference a year makes, when, as in the case of Trifast, business dynamics start to build momentum.
Over the past three years, our teams have focused on 'working smarter' in relation to suppliers, customers, buy/sell margin and non value-add costs and resources, latterly employing the Pareto (80/20) principle e.g. 80% of our profit coming from only 20% of our customers – so making sure that we don't become 'busy fools'!
The encouraging outcome from these efforts has been to reduce our overall overheads as a % of Revenue from 23% in 2010 to 19% for this 2013 financial year end, and to increase underlying Group pre-tax profit by 45% against 2012, with 85% of EBITDA* being yielded in cash from operations.
We acknowledge that this 'self-help' business focus has moved on from being a recovery strategy that started in early 2010 to becoming a permanent key element of the now ingrained 'Continuous Improvement' culture that we know has the potential to deliver still further process improvements going forward.
Your Board structure has been streamlined from six Executive Directors to five; post the year end we then welcomed the addition of Scott Mac Meekin as our third Independent Non-Executive Director. Scott's Asian and US fastener experience coupled with his strategic capabilities adds further strength to our team.
We have much to report upon with regard to operational developments around the Group. These include:
- Important new Global manufacturing licences granted by both Philips Screw Co. and Acument
- First major trading links with Russia and South Korea
- Exciting new product range launches of plastic fasteners and metal spacing pillars
- Expansion of our India business
- New headquarters for our expanding Swedish operations
- Investment in sophisticated automation enabling us to adopt 'zero-defect philosophy' within product quality out of our Singapore and Malaysian factories – with Taiwan targeted for 2014
- Both our Southern and Northern Ireland operations enjoying steady growth in a tough environment and,
- Our restructured US location starting to out-perform on profitability, having just enlarged its warehouse facilities with an additional unit in Houston.
As Directors, we are particularly pleased with the jump in profitability between March 2012 and March 2013. We remain committed to the pursuit of shareholder value, and as part of this, see many reasons that point to further 'bottom-line' growth for the foreseeable future; whilst we also continue to pursue 'no nonsense earnings enhancing bolt-on acquisitions', we can demonstrate that by focusing determinedly on our existing assets and resources, quantum leap improvements in performance are achievable.
As always, we appreciate your loyalty and support to our Company, and in return we will continue to do our best to maintain open, honest and regular communication on how we are managing your investment.
Malcolm Diamond MBE