Trifast (LSE:TRI) reported resilient audited results for the year ended 31 March 2026, with revenue declining 7.3% at constant exchange rates to £207.1 million as the group continued to prioritise higher-quality business over sales volume amid challenging economic and geopolitical conditions.
Despite lower revenue, gross margin improved to 30.0%, while underlying EBIT increased to £16.3 million, lifting the underlying EBIT margin to 7.8%. The company also strengthened its balance sheet, reducing adjusted net debt to £16.0 million and lowering leverage to 0.75x. Reflecting confidence in cash generation, the board increased the annual dividend to 1.90p per share.
Operational improvements drive profitability
The first year of Trifast’s Rebuild phase under its Recover, Rebuild, Resilience strategy delivered higher profitability through improved pricing discipline, a stronger sales mix and greater operational efficiency.
The group streamlined its manufacturing footprint by exiting production in Malaysia, established a new shared services centre in Hungary and continued standardising processes across the business. These initiatives contributed to margin expansion while creating a leaner operating model.
Focus shifts towards higher-growth sectors
Trifast is continuing to increase its exposure to higher-value end markets, with Smart Infrastructure now accounting for 17% of the group’s portfolio alongside continued expansion in the Medical sector.
The company is also progressing its Project Ignite enterprise resource planning (ERP) programme, based on Microsoft Dynamics 365, to improve data management, operational controls and scalability. Management believes these investments will support a long-term objective of achieving EBIT margins above 10% while returning the business to sustainable revenue growth, particularly across North America, Asia and the fast-growing Indian market.
Momentum continues into FY27
Management said trading momentum has continued into the new financial year, supported by the strongest sales pipeline since the current transformation strategy was introduced and growing exposure to structurally attractive end markets.
The combination of improving profitability, lower leverage, a progressive dividend and continued investment in systems and higher-value sectors suggests the business is moving from rebuilding margins towards restoring revenue growth. Nevertheless, broader macroeconomic uncertainty, revenue pressures and cash flow challenges remain factors for investors to watch.
More about Trifast
Trifast plc is an international designer, manufacturer and distributor of engineered fastening solutions used across a wide range of industrial, infrastructure and manufacturing applications. The company supplies mission-critical components to customers worldwide, positioning itself as a long-term engineering and supply chain partner.
Its strategy increasingly focuses on higher-growth sectors including Smart Infrastructure, medical equipment, HVAC, power distribution, data connectivity and water infrastructure. Alongside targeted acquisitions, Trifast is investing in digital systems, including Microsoft Dynamics 365, and shared service capabilities to improve operational efficiency, support future growth and expand profit margins.
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