Trifast undone by worsening market conditions and coronavirus impact
The company said that since its last market update in November, market conditions have deteriorated and the board now expects full-year profits will be at the lower end of analysts’ forecasts.
The company tried to reassure on the impact of the coronavirus, saying to date the fall-out from the company’s point of view had been restricted to the extended closure of its Chinese sites and a corresponding reduction in locally generated revenues but it cautioned it is not currently possible to assess how extensive any longer-term impacts will be.
The company is pinning its hopes on its Project Atlas overhaul of its global systems, processes and procedures but warned that while the roll-out remains on track, it is probable that the expected benefits will take longer to feed through than previously expected.
“Notwithstanding the current high levels of uncertainty, we are pleased to report that our pipeline of new wins is strong and activity levels around the group continue to be encouraging,” Trifast’s stock market statement said.
The company said it was optimistic it could achieve revenue growth in the year to the end of March 2021 and beyond.
“We are encouraged and supported by the fact that we have lost neither business nor customers over this difficult period and continue to hold preferred supplier status at a wide range of large manufacturers across the globe,” it added.
Trifast shares were down 6.1% at 162.5p in early deals ad are well below their 52-week high of 242p, achieved at the end of April 2019.