Trifast PLC
21 November 2007
21 November 2007
TRIFAST PLC
Interim Results for the six months ended 30 September 2007
Commenting on the interim results, Steve Auld Chief Executive, said:
'Trifast performed strongly and delivered a solid operating profit in a
challenging market. During the period we have made significant progress with our
New Business Development Team and are currently developing new quality business
plans to drive growth going forward.'
Financial and Operational Highlights:
• Revenues at £62.07 million
• Profit before tax (pre-goodwill, intangible amortisation, IFRS 2
charges, and restructuring costs) up 13% at £4.75 million.
• Statutory profit before tax was up 32% at £4.46 million
• Basic earnings per share increased by 34% to 3.96p
• Interim dividend increased to 0.93p
• Investment in Key Account Management Team and business strategy fully
operational
• Marketing plan to develop the TR brand into one of the recognised
leading brands within the industry
Enquiries
Trifast Group plc Tel: 020 7360 4900
Steve Auld, Chief Executive Officer today only, thereafter
Stuart Lawson, Chief Financial Officer Tel: 01825 747 366
Smithfield Consultants
Reg Hoare / Will Swan Tel: 020 7360 4900
Arden Partners
Richard Day Tel: 020 7398 1632
Notes to Editors
Trifast plc is a leading international manufacturer and distributor of
industrial fastenings to the assembly industries, with operations in Europe, the
Americas and Asia.
For more information please visit www.trifast.com
Trifast plc
Summary interim results for the six months ended 30 September 2007
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
Revenue £62.07m £67.81m £131.95m
Gross profit £17.09m £17.45m £34.72m
Operating profit £5.23m £4.66m £9.74m
(pre-goodwill, intangible
amortisation, IFRS 2 charges
and restructuring costs)
Operating profit £4.94m £3.81m £6.36m
Pre-tax profit £4.75m £4.22m £8.81m
(pre-goodwill, intangible
amortisation, IFRS 2 charges
and restructuring costs)
Pre-tax Profit £4.46m £3.38m £5.43m
Earnings per share
- Basic 3.96p 2.95p 4.70p
- Diluted 3.94p 2.95p 4.70p
Dividend 0.93p 0.77p 2.43p
Statement by the Chairman Anthony Allen and Chief Executive Steve Auld
Business Review
During the first half of the financial year the Company delivered profits in
line with market expectations. This is especially pleasing as the market has
become an increasingly competitive environment due to globalisation of
manufacturers, and as previously reported, the impact of increased prices of raw
materials, energy, and freight costs. The Company has taken the appropriate
action over the past months which will enable it to meet these challenges.
Results
In spite of the challenges highlighted above, the Company reported a solid
performance for the first half year.
Although sales show a decline on the previous year this was due to the loss of
lower margin business moving away from the Group, after a detailed customer
review. This review was conducted as a result of our continued focus on
improving profitability.
The highlights to be noted in the interim are the TR Asia results. The
businesses have reported sales growth and improved profitability for the period.
TR Asia continues to set world class standards for the Industry.
Initiatives taken in first half
We have strengthened our key sales account management team, and appointed a
number of senior sales managers who are now working with our business operations
to drive organic growth. These initiatives together with our fully operational
business strategy are intended to improve our performance this year
notwithstanding challenging market conditions.
The New Business Development Team is a work in progress as we still have a few
vacancies left to fill. However, we are delighted with the calibre of our new
recruits, and these when added to the existing experienced salesmen, form a
powerful force.
New business plans for 2008 focus on the development of our European Divisions.
Additional resources are planned to expand sales in Asia by establishing a new
business sales team to mirror that formed in Europe.
Transactional sales activity for our business operations has been strengthened
by staff training and recruitment. We have also invested in a software solution
that improves sales monitoring, which we expect to be fully operational in the
second half of the year and we can already see sales growth for TR Proprietary
parts.
Our marketing plan to support these initiatives will develop the TR brand into
one of the recognised leading brands within the industry.
The Master Distributor Programme (MDP) is progressing well in Europe and sales
are growing. This product base, focused on sales to distributors, has already
been launched in North America.
The MDP, focusing on selling TR Proprietary products, is expected to result in
rapid sales growth during the next three year period. The development of the
team will involve additional recruitment and again we will only select high
calibre candidates.
Staff and customer surveys have recently been conducted. These have given rise
to a review of staff training needs and measures to optimise and improve
business unit performance.
Acquisitions
During the period we reviewed a number of potential acquisitions, but have not
progressed any as we were not satisfied they met our stringent criteria.
Summary
Trifast performed strongly and delivered a solid operating profit in a
challenging market. During the period we have made significant progress with our
New Business Development Team and are currently developing new quality business
plans to drive growth going forward.
Trifast has a proven ability to follow business into new territories. Currently
India and Vietnam are countries where customer based opportunities are being
supported.
Sales to the challenging automotive sector have found success in providing
either comprehensive supply solutions or focussed manufacturing capability.
Particular success is being found also with domestic appliance manufacturers in
Eastern Europe.
Trifast continues to seek out customers committed to long term relationships to
achieve mutual benefits whilst paying attention to the quality and its earnings.
Current Trading and Prospects
The current short term focus of our business operations is to deliver the full
year profit targets. The first half results above and the good start to the
second half gives us confidence that these profits are achievable. With the
development of our sales teams and our detailed marketing policy the medium to
long term prospects for profitable sales growth are good.
FINANCIAL OVERVIEW
This period has given us many external challenges including raw material price
increases, foreign exchange movements and general market uncertainties. However,
Trifast has dealt with these challenges along with our own internal issues of
new sites, changing computer systems and reviewing profitability of sales
accounts, to deliver an increase in net profit (pre goodwill, IFRS2, intangible
amortisation and restructuring costs) of 12.6% at £4.75million.
Results
Gross profit for the six month period was £17.09million (2006:£17.45million),
representing a £0.36million reduction, but an increase in return on sales from
25.7% to 27.5%. We continue to focus on new sales and are confident that we can
maintain this improved gross margin level.
Profit before income tax in the period was £4.46million (2006:£3.38million),
indicating a better business mix to move forward on and an improved net profit
percentage on sales of 2.2% points to 7.2% (or 8.0% at operating profit level).
With an effective tax rate of 24.9% (2006:26.3%), profit after tax was
£3.35million (2006:£2.49million).
Operating profit before financing costs was £4.94million, up 29.7% from last
year's £3.81million reflecting the higher gross margin and effective overhead
control.
As a result of our continued review of profitability of key accounts and a
toughening market, Group revenue reduced by £5.74million on prior year and
£2.07million from the second half of the year ended March 2007 to £62.07million.
Allowing for known reductions, the underlying revenue growth was disappointing
at 2.7%. The result of a profitability review and our continued focus on costs
and efficiency of our sourcing has helped us to continue to improve our gross
margins with an improvement of 1.8% points on the prior year and 1.2% points on
the full year ended 31 March 2007.
Europe/USA
European/USA revenues which now represent 78.2% (2006:80.8%) have decreased by
£6.27m as explained above but the gross margin has increased to 23.7%. Sales
revenue in the UK declined by £5.15million. Positive growth was seen in Holland,
Hungary, Poland and Turkey. A large proportion of the UK reduction was
attributable to the movement of accounts to Asia.
Asia
Our Asian revenues were up on last year at £13.52million, up 3.7%, with lower
margin sales from Taiwan to the USA automotive industry declining but higher
margin sales from Singapore and China replacing this. The result being an
increase in gross margin of 3.7% points to 34.8%. Other factors impacting on the
increased margin include more inter-Group sourcing from Asia, increased
consolidated purchasing and continued improvements to the efficiency our
factories. China continues to benefit from the movement of global customers to
lower cost regions and is now proving to be an excellent place to locate our
Asian sourcing office.
One Off Items
Our focus on Group efficiencies has resulted in us absorbing a further
£0.25million of one-off costs within our results and we should see a similar
number in the second half. The Group's distribution and administration overheads
now stand at 19.3% of sales (2006:19.0%), a level at which we are comfortable
and feel that there is still some spare capacity for sales growth, thus reducing
the percentage overheads to sales. As indicated at the year end, we had no
further material restructuring costs, but we continue to set costs against the
provisions made in the prior two years.
Debt / Cash
Gross debt in the period has been reduced by a further £1.84million to
£17.69million since the year ended 31st March 2007 with net debt now at
£12.97million at the period end, giving a gearing of 25.0%. Cash generated from
operations in the period amounted to £2.23m before restructuring costs of
£1.11million. This figure is lower than the prior year due to the increased
purchasing from Asia which results in lower payment terms but higher gross
margins and the tightening up of supply chain controls to reduce customer risk
in the supply chain.
Working Capital
Stock levels have remained consistent to year end, as stock reduction procedures
take effect, however, a number of sites saw an increase in stock levels in
preparation for new accounts commencing delivery in the second half of the year.
The team continues to work to stock turn targets and manage the fine line
between reduction in stock levels and maintenance of customer supply continuity.
Debtor management remains a core control and we are pleased to report that we
have had no significant bad debts in the period and our debtor days remain
strong at 65. Creditor days were 63.
Net working capital levels were increased in the period due to the decreased
level of the accounts payable. This resulted from bringing the recent
acquisitions of Serco Ryan and Keba in line with Group policies to ensure
supplier continuity for customers, increased purchases from Asia resulting in
lower credit terms but higher gross margins, and lastly an increase in the
product bought from our own factories again resulting in higher margins.
Capital Expenditure
As indicated last year, capital expenditure has increased on prior periods at
£0.51million (2006:£0.27million), reflecting expenditure on IT Systems and
investment into both our manufacturing and distribution facilities now that we
have a stable distribution network from which we will grow the business.
Net Financing Costs
Net financing costs increased to £0.62million of which interest payable amounted
to £0.69million (2006:£0.50million), reflecting both the full period of debt at
current levels and increased bank base rates over the last 12 months.
Earnings Per Share
Basic earnings per share in the period was 3.96pence, an increase of 34% on the
equivalent period last year.
Interim Dividend
The Directors have declared an increased interim dividend of 0.93pence per
ordinary share (2006:0.77pence) reflecting the Board's confidence in the future
of the Group and to further bring the dividend cover in line with our long term
goal of 3 times. The interim dividend will be paid on 17 January 2008 to
shareholders on the Register on 30 November 2007, with an ex dividend date of 28
November 2007.
Responsibility Statement
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements contained in this document has
been prepared in accordance with International Accounting Standard 34 ('IAS
34'), 'Interim Financial Reporting' as adopted by the European Union;
(b) the Interim management report contained in this document includes a fair
review of the information required by the Financial Services Authority's
Disclosure and Transparency Rules ('DTR') 4.2.7R (indication of important
events during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
(c) this document includes a fair review of the information required by DTR
4.2.8R (disclosure of related party transactions and changes therein).
By order of the Board
Steve Auld Stuart Lawson
Chief Executive Officer Chief Finance Officer
21 November 2007 21 November 2007
Cautionary Statement
The Interim Management Report has been prepared for the shareholders of the
Company, as a body, and no other persons. Its purpose is to assist shareholders
of the Company to assess the strategies adopted by the Company and the potential
for those strategies to succeed and for no other purpose. This Interim
Management Report contains forward looking statements that are subject to risk
factors associated with, amongst other things, the economic and business
circumstances occurring from time to time in the countries, sectors and markets
in which the Group operates. It is believed that the expectations reflected in
these statements are reasonable but they may be affected by a wide range of
variables which could cause actual results to differ materially from those
currently anticipated. No assurances can be given that the forward-looking
statements in this Interim management report will be realised. The
forward-looking statements reflect the knowledge and information available at
the date of preparation.
Description of Business
Trifast plc is a leading international manufacturer and distributor of
industrial fastenings to the assembly industries, with operations in Europe, the
Americas and Asia.
Condensed consolidated interim income statement
Unaudited results for the six months ended 30 September 2007
Notes Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£000 £000 £000
Revenue 62,074 67,807 131,946
Cost of Sales (44,985) (50,356) (97,224)
----- ------------ ------------ ----------
Gross Profit 17,089 17,451 34,722
Other Operating Income 134 86 220
Distribution Expenses (1,394) (1,372) (2,868)
--------------------------------------------------------------------------------
Administrative
Expenses before (10,601) (11,508) (22,336)
the following items:
- Intangible Amortisation (137) (131) (274)
- Restructuring Costs - (634) (2,894)
- IFRS 2 Charge (153) (83) (213)
--------------------------------------------------------------------------------
Total Administration
Expenses (10,891) (12,356) (25,717)
----- ------------ ------------ ----------
Operating Profit 4,938 3,809 6,357
----- ------------ ------------ ----------
Financial Income 71 69 144
Financial Expenses (690) (502) (1,175)
----- ------------ ------------ ----------
Net Financing costs (619) (433) (1,031)
Share of profit of
associate 141 - 100
----- ------------ ------------ ----------
Profit before Tax 4,460 3,376 5,426
Taxation 3 (1,109) (887) (1,453)
----- ------------ ------------ ----------
Profit for the
Period attributable
to equity holders
of the parent 3,351 2,489 3,973
===== ============ ============ ==========
Earnings per Share
- Basic 5 3.96p 2.95p 4.70p
- Diluted 5 3.94p 2.95p 4.70p
Dividends 4 0.93p 0.77p 2.43p
Condensed consolidated interim statement of recognised income and expense
Unaudited results for the six months ended 30 September 2007
Six months ended Six months ended Year ended
30 September 2007 30 September 2006 31 March 2007
£000 £000 £000
Foreign currency
translation differences
(net of tax) (95) (1,378) (1,511)
Net (loss)/gain on
hedge of net investment
in foreign subsidiary
(net of tax) (18) 12 14
------------- ----------- ---------
Net Expense Recognised
Directly in Equity (113) (1,366) (1,497)
------------- ----------- ---------
Profit for the Period 3,351 2,489 3,973
------------- ----------- ---------
Total Recognised
Income for the Period
attributable to equity
holders of the parent. 3,238 1,123 2,476
============= =========== =========
Condensed consolidated interim balance sheet
Unaudited results as at 30 September 2007
Notes 30 September 30 September 31 March
2007 2006 2007
£000 £000 £000
Non-current assets
Property, plant and
equipment 8,212 8,586 8,324
Intangible assets 23,066 24,046 23,316
Investment in associate 2,896 - 2,836
Deferred tax assets - 573 350
----- ----------- ----------- ---------
Total non-current
assets 34,174 33,205 34,826
----- ----------- ----------- ---------
Current assets
Stocks 25,877 24,837 25,611
Trade and other
receivables 27,472 29,678 28,109
Cash and cash
equivalents 9,724 7,421 6,757
----- ----------- ----------- ---------
Total current assets 63,073 61,936 60,477
----- ----------- ----------- ---------
Total assets 97,247 95,141 95,303
----- ----------- ----------- ---------
Current liabilities
Bank and other loans 7,741 2,893 3,082
Trade and other payables 19,919 24,158 24,181
Tax payable 981 835 192
Dividends payable 1,406 1,248 -
Deferred consideration - 2,562 -
Provisions 725 166 1,624
----- ----------- ----------- ---------
Total current
liabilities 30,772 31,862 29,079
----- ----------- ----------- ---------
Non-current liabilities
Bank and other loans 14,953 14,152 16,394
Provisions 900 1,170 1,096
Deferred tax liabilities 406 753 509
----- ----------- ----------- ---------
Total non-current
liabilities 16,259 16,075 17,999
----- ----------- ----------- ---------
Total liabilities 47,031 47,937 47,078
----- ----------- ----------- ---------
Net assets 50,216 47,204 48,225
----- ----------- ----------- ---------
Equity
Share capital 4,236 4,219 4,236
Share premium 12,052 11,874 12,046
Reserves (739) (495) (626)
Retained earnings 6 34,667 31,606 32,569
----- ----------- ----------- ---------
Total equity 7 50,216 47,204 48,225
----- ----------- ----------- ---------
Condensed consolidated interim statement of cash flows
Unaudited results for the six months ended 30 September 2007
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2007 2006 2007
£000 £000 £000
Cash Flows from Operating Activities
Profit for the Period 3,351 2,489 3,973
----------- ---------- ---------
Adjustments for:
Depreciation, amortisation &
impairment 703 746 1,445
Financial income (71) (69) (144)
Financial expense 690 502 1,175
Loss/(gain) on sale of property,
plant & equipment (11) 3 (7)
Equity settled share based
payment expense 153 83 213
Profit from associate (141) - (100)
Taxation 1,109 887 1,453
----------- ---------- ---------
Operating profit before changes in
working capital and provisions 5,783 4,641 8,008
Change in trade and
other payables (4,441) 326 72
Change in stocks (190) (272) (1,066)
Change in trade and
other receivables 1,084 (562) 973
Change in provisions (1,106) (121) 1,262
----------- ---------- ---------
Cash generated from operations 1,130 4,012 9,249
Tax paid (413) (446) (1,668)
----------- ---------- ---------
Net Cash from Operating Activities 717 3,566 7,581
----------- ---------- ---------
Cash Flows from Investing Activities
Acquisition of subsidiaries (4) (18) (4,761)
and investments net of cash
Acquisition of property, plant &
equipment (511) (269) (683)
Dividends received 81 - -
Proceeds from sale of property,
plant & equipment 20 - 64
Interest received 66 71 145
----------- ---------- ---------
Net cash from investing activities (348) (216) (5,235)
----------- ---------- ---------
Cash Flows from Financing Activities
Proceeds from issue of share capital 6 - 190
Proceeds from new loan - - 3,799
Repayment of long term borrowings (1,518) (1,416) (2,810)
Dividends paid - - (1,899)
Interest paid (672) (474) (1,090)
----------- ---------- ---------
Net Cash from Financing Activities (2,184) (1,890) (1,810)
----------- ---------- ---------
Net change in Cash (1,815) 1,460 536
and Cash Equivalents
Cash and Cash Equivalents at start
of period 6,470 6,252 6,252
Effect of exchange rate fluctuations
on cash held 64 (291) (318)
----------- ---------- ---------
Cash and Cash Equivalents at end of
period 4,719 7,421 6,470
----------- ---------- ---------
Notes to the condensed consolidated interim financial statements
Unaudited results for the six months ended 30 September 2007
1. Basis of preparation
This interim statement has been prepared on the basis of accounting policies set
out in the full Annual Report and Accounts for the year ended 31 March 2007.
These condensed consolidated interim financial statements have been prepared in
accordance with the Disclosure and Transparency Rules of the Financial Services
Authority and International Financial Reporting Standard (IFRS) IAS 34: Interim
Financial Reporting as adopted in the EU. They do not include all of the
information required for full annual financial statements, and should be read in
conjunction with the consolidated financial statements of the Group as at and
for the year ended 31 March 2007.
This statement does not comprise full financial statements within the meaning of
Section 240 of the Companies Act 1985. The statement is unaudited but has been
reviewed by KPMG Audit Plc and their report is set out below.
The comparative figures for the financial year ended 31 March 2007 are not the
Company's statutory accounts for that financial year and have been extracted
from the full Annual Report and Accounts for that financial year. Those accounts
have been reported on by the company's auditors and delivered to the registrar
of companies. The report of the auditors was (i) unqualified, (ii) did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report, and (iii) did not contain a
statement under section 237(2) or (3) of the Companies Act 1985.
2. Segment reporting
Segment information is presented in the condensed consolidation interim
financial statements in respect of the Group's geographical segments, which are
the primary basis of segment reporting. The geographical segment reporting
format reflects the Group's management and internal reporting structure.
Inter-segment pricing is determined on an arm's length basis.
Segment results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis.
Business segments
The Group is comprised of the following main geographical segments:
Europe/America: includes UK, Norway, Sweden, France, Hungary, Southern Ireland,
Holland, Turkey, Los Angeles, Phoenix and Mexico
Asia: includes Malaysia, China, Singapore and Taiwan
Segment revenue and result under primary reporting format for the 6 months ended
30 September 2007 and 2006 are disclosed in the table below:
Europe/USA Asia Central Group
2007 2006 2007 2006 2007 2006 2007 2006
£000 £000 £000 £000 £000 £000 £000 £000
Revenue
Revenue from
external
customers 48,551 54,769 13,523 13,038 - - 62,074 67 807
Inter segment
revenue 2,635 2,689 1,617 2,080 - - 4,252 4,769
------- ------- ------- ------- ------- ------- ------- --------
Total 51,186 57,458 15,140 15,118 - - 66,326 72,576
revenue ------- ------- ------- ------- ------- ------- ------- --------
Segment
results
before 2,387 2,920 3,669 2,756 (687) (1,019) 5,369 4,657
items
listed
below
Intangible
amortisation (137) (131) - - - - (137) (131)
Restructuring
costs - (584) - - - (50) - (634)
Equity
settled
share based - - - - (153) (83) (153) (83)
payments
------- ------- ------- ------- ------- ------- ------- --------
Segment 2,250 2,205 3,669 2,756 (840) (1,152) 5,079 3,809
Result
Net financing
costs (619) (433)
------- ------- ------- ------- ------- ------- ------- --------
Profit on
ordinary 4,460 3.376
activities
before
taxation
Taxation (1,109) (887)
------- ------- ------- ------- ------- ------- ------- -------
Profit for
the 3,351 2,489
Period ------- ------- ------- ------- ------- ------- ------- -------
Segment net
assets/
(liabil 45,288 44,465 17,516 15,077 (12,588) (12,338) 50,216 47,204
ities) ------- ------- ------- ------- ------- ------- ------- -------
Revenue is derived from the manufacture and logistical supply of industrial
fasteners and Category 'C' components.
3. Taxation
The charge for tax is an estimate based on the anticipated effective rate of tax
for the year ending 31 March 2008, adjusted for prior year items as shown below:
Six months Six months
ended ended
30 September 2007 30 September 2006
£000 £000
Current tax on income for the period
UK Tax 178 170
Foreign Tax 971 797
Adjustments in respect of prior years (40) (80)
------------- ------------
1,109 887
============= ============
4. Dividends
The dividend payable figure of £1.41 million represents the final dividend
recommended at the March 2007 Year End and approved at the AGM in September
2007.
The Directors declared an interim dividend of 0.93 pence per ordinary share to
be paid on 17 January 2008 to shareholders on the register on 30 November 2007.
In accordance with IAS10 no accrual has been made in these interims statements.
5. Earnings per share
The calculation of earnings per 5p ordinary share is based on profit for the
period after taxation and the weighted average number of shares in the period of
84,715,325 (September 2006: 84,380,807; March 2007: 84,459,931).
The calculation of the fully diluted earnings per 5p ordinary share is based on
profit for the period after taxation. In accordance with IAS 33 the weighted
average number of shares in the period has been adjusted to take account of the
effects of all dilutive potential ordinary shares. The number of shares used in
the calculation amount to 85,069,832 (September 2006: 84,441,564; March 2007:
84,584,980).
The adjusted diluted earnings per share for the six months ended 30 September
2007 is as follows:
Six months Six months Year ended
ended ended 31 March 2007
30 September 30 September £000
2007 2006
£000 £000
Profit for the period 3,351 2,489 3,973
Restructuring costs - 634 2,894
Tax effect - (190) (698)
------------- ------------- ---------
Adjusted Profit 3,351 2,933 6,169
============= ============= =========
Basic EPS 3.96p 2.95p 4.70p
Diluted Basic EPS 3.94p 2.95p 4.70p
Adjusted Diluted EPS 3.94p 3.47p 7.29p
6. Retained Earnings
Six months Six months Year ended
ended ended 31 March 2007
30 September 30 September £000
2007 2006
£000 £000
Opening balance 32,569 30,282 30,282
Retained profit for period 3,351 2,489 3,973
Equity-settled share 153 83 213
based payment transactions
Dividends (1,406) (1,248) (1,899)
------------- ------------- ---------
Closing Balance 34,667 31,606 32,569
============= ============= =========
7. Reconciliation of Movements in Total Equity
Six months Six months Year ended
ended ended 31 March
30 September 30 September 2007
2007 2006
£000 £000 £000
Profit for the financial period 3,351 2,489 3,973
Net issue of ordinary shares 6 1 190
Equity settled share based
payment transactions 153 83 213
Exchange differences (113) (1,366) (1,497)
Dividends (1,406) (1,248) (1,899)
------------- ------------ ----------
Net addition to/(reduction
in) Total Equity 1,991 (41) 980
Opening Total Equity 48,225 47,245 47,245
------------- ------------ ----------
Closing Total Equity 50,216 47,204 48,225
============= ============ ==========
8. Related party transactions
Key management personnel compensation
In addition to their salaries, the Group also provides non-cash benefits to
directors and executive officers, and contributes to a non-contributory defined
contribution pension plan on their behalf.
Executive officers also participate in the Group's share option programme.
Key management represented by the Main Board, European Board and the Asian Board
whose personnel compensation including termination payments amounted to £969k
(2006: £1,136k).
9. Cash and Cash Equivalents at end of period.
Six months Six months Year ended
ended ended 31 March
30 September 30 September
2007 2006 2007
£000 £000 £000
Cash and cash equivalents 9,724 7,421 6,757
Bank overdraft (5,005) - (287)
------------- ------------ ----------
Net cash and cash 4,719 7,421 6,470
equivalents ============= ============ ==========
Independent review report by KPMG Audit Plc to Trifast plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2007 which comprises the Consolidated Income Statement, the
Consolidated Balance Sheet, the Consolidated Statement of Recognised Income and
Expense, the Consolidated Cash Flow Statement and the related explanatory notes.
We have read the other information contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Disclosure
and Transparency Rules ('the DTR') of the UK's Financial Services Authority
('the UK FSA'). Our review has been undertaken so that we might state to the
company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the DTR of the UK FSA.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half-yearly financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the
EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2007 is not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU and the DTR of
the UK FSA.
KPMG Audit Plc
Chartered Accountants
1 Forest Gate
Brighton Road
Crawley
West Sussex RH11 9PT
20 November 2007
This information is provided by RNS
The company news service from the London Stock Exchange
