Trifast (TRI) Investor update summary

Strategic progress and portfolio shift

• Entered the 'rebuild' phase, focusing on engineering solutions and supply chain simplification, now accounting for 60% of revenue.

• Shifted portfolio toward higher growth sectors like smart infrastructure and medical equipment, and markets such as North America, India, and Asia.

• Smart infrastructure now represents 17% of total revenue, nearly double from 2024.

• Achieved 110 basis points of EBIT margin improvement through value-based pricing and cost management.

• Maintained focus on long-term growth in the Middle East, with Saudi Arabia operations on track.

Financial performance and transformation

• FY 2026 revenue was £207 million, down 7.3%, reflecting tough markets and a shift away from low-margin business.

• Gross margin improved by 170 basis points to 30%; underlying EBIT rose to £16.3 million, with EBIT margin at 7.8%.

• Net debt reduced to £16 million, leverage at 0.75x, and ROCE improved to 8.5%.

• Increased full-year dividend to £0.019 per share.

• Transformation actions, including Project Ignite, reduced costs and improved operational efficiency.

Operational and regional highlights

• Payroll costs cut by 6%, headcount by 10%, and distribution costs reduced faster than revenue.

• UK & Ireland and Europe saw margin recovery despite revenue declines; Asia faced margin pressure due to volume and cost flexibility.

• Revenue mix is more balanced, with less reliance on automotive and growth in smart infrastructure and medical equipment.

• Project Ignite investment of £6 million expensed, supporting digital transformation and future margin progression.