Trifast — Update 14 June 2016

Trifast — Update 14 June 2016

Trifast

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Trifast

Another fine year’s trading

Preliminary results

Industrial support services

14 June 2016

Price

135p

Market cap

£158m

Net debt (£m) 31 March 2016

16.0

Shares in issue

116.7m

Free float

87%

Code

TRI

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

1.7

6.3

6.7

Rel (local)

3.1

7.6

18.8

52-week high/low

139.5p

105.0p

Business description

Trifast is a leading global designer, manufacturer and distributor of industrial fasteners. Principal operations are in the UK, South-East Asia and continental Europe, while there is a modest, but growing, presence in North America.

Next events

AGM

August 2016

Analysts

Nigel Harrison

+44 (0)20 3077 5700

Roger Johnston

+44 (0)20 3077 5722

Trifast is a research client of Edison Investment Research Limited

Trifast has delivered another fine year’s trading; diluted adjusted EPS has doubled from 4.73p in FY13 to 9.99p in FY16. Management has sustained a consistent level of investment (organic and acquisitions) to support the next stage of growth. This potential is not recognised in the share price.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

03/15

154.7

14.3

8.68

2.10

15.6

1.6

03/16

161.4

16.0

9.99

2.80

13.5

2.1

03/17e

170.0

16.9

10.45

2.95

12.9

2.2

03/18e

178.0

17.9

11.07

3.10

12.2

2.3

Note: *PBT and EPS are normalised and diluted, excluding intangible amortisation, exceptional items and share-based payments.

Ahead of market estimates

Results for the year to March 2016 demonstrate another fine performance in the face of a challenging trading climate. Underlying PBT rose by 12% to £16.0m, comfortably ahead of both our own (£15.4m) and market estimates. Increased operating profits were delivered in each region, despite the adverse impact of currency movements, while recent acquisitions in Italy and Germany delivered to our best expectations. Gross margins were lifted by 70 basis points to 29.7%. The dividend was raised by a 33% to 2.8p, covered 3.6x by adjusted EPS.

Investment points to continued progress

The positive investment momentum has continued. Manufacturing capacity has been broadened and extended in Malaysia, Taiwan and Italy, while the group has extended its European coverage by acquisition. There is a clear growth policy involving extending the group share of business of its 50 major multinational customers and infilling by strategic acquisition where appropriate. Despite the challenging trading climate we are raising our current year profits estimate from £16.5m to £16.9m and introducing a target of £17.9m for FY18.

Strong balance sheet

Net borrowings rose by £2.6m to £16.0m, after absorbing acquisition expenditure of £7.7m; gearing rose modestly to 19%. Our estimates suggest net borrowings falling by in excess of £2m in each of the next two years.

Valuation: Potential not recognised

The peer group table shows a distinct differential between distributors to the industrial sector (11.8x CY16 prospective earnings) and those supplying more high-profile sectors (20.1x). In the context of doubled EPS over the past three years and the opportunities emerging from recent investment, we believe that the growth potential of Trifast is not recognised in its current rating.

Investment summary

Design, manufacture and distribution of industrial fasteners

Trifast is a specialist designer, manufacturer and distributor of industrial fasteners. While its origins are in the UK, the group has built a global presence, extending initially into Asia, but more recently into continental Europe and, to a lesser extent, into North America. Trifast differentiates itself from its global competitors by operating its own manufacturing plants, principally across Asia and in Italy, which enable the group to offer design support as part of a high-quality, comprehensive and tailor-made supply chain management service. Management is constantly broadening the product range, while recent acquisitions have introduced businesses in Malaysia, Italy and Germany.

Valuation

Trifast’s share price has risen by 17% over the past six months, much in line with the 15% average of the majority of its peer group. The peer group table shows a distinct discount accorded to companies supplying the industrial products relative to those supplying electronic components (11.8x vs 20.1x CY16 prospective earnings). This is understandable in the context of the challenging global trading climate, but does seem over cautious. We believe the market is not recognising Trifast’s consistent trading performances since the management changes in 2009. Its size relative to its peers could justify a lower rating, but this is more than balanced by the likely medium-term impact of recent investment decisions by management, including key acquisitions.

Financials

Results for the year to March 2016 show underlying pre-tax profits up by 12% to £16.0m; diluted underlying EPS rose by 15% to 9.99p. The dividend was raised by a third to 2.80p, covered 3.6 times. Despite the challenging trading climate, the current year has started well with a strong new order pipeline. We are raising our current year estimate from £16.5m to £16.9m and introducing a £17.9m target for FY18.

Net borrowings rose by £2.6m over the year to £16.0m; the outflow was more than accounted for by £7.7m acquisition expenditure. Our current estimates indicate a reduction of at least £2m in net borrowings in the current year and in the year to March 2017.

Exhibit 1: Estimate changes

To March

EPS (p)

PBT (£m)

EBITDA (£m)

Old

New

% chg.

Old

New

% chg.

Old

New

% chg.

2016

9.21

9.99

+8

15.4

16.0

+4

17.6

18.2

+2

2017e

9.86

10.45

+6

16.5

16.9

+2

18.9

19.4

+3

2018e

N/A

11.07

N/A

N/A

17.9

N/A

N/A

20.4

N/A

Source: Trifast RNS, Edison Investment Research. Note: EPS are normalised and fully diluted.

Sensitivities

Distributors of industrial components bear the brunt of destocking and restocking, which tends to accentuate the impact of shifts in economic cycles. This is true for Trifast at extreme stages of the economic cycle, but the group’s operational flexibility and product development/design skills enable management to use strong relationships with its major customers to anticipate and respond early to these challenges. Similarly, management responds to the ongoing risks encountered by all distributors to the industrial sector, such as cost-down pressures, fluctuating raw material costs, exchange rate movements, stock obsolescence and the migration of global manufacturing capacity to lower-cost territories, as part of the day-to-day challenges of the business.

Another fine set of figures

Trifast has built on its strong first half performance in the year to March 2016. While the majority of the profits increase was delivered at the interim stage, when a £0.6m currency benefit in Singapore helped lift underlying PBT by 25% from £6.6m to £8.3m, further profits progress was reported in the second half. Over the full year and in an ongoing challenging trading climate, underlying pre-tax profits rose by 12% from £14.3m to £16.0m, comfortably above our £15.4m estimate.

Exceptional costs (related to acquisitions) were materially lower at £0.3m, compared to £1.2m in the previous year. The IFRS2 charge and intangibles amortisation were doubled, up from a combined £1.3m to £2.6m.

A small amount of equity dilution related to shares issued as part of the consideration for the previous year’s acquisition, but, with the help of a lower tax charge, diluted adjusted EPS rose by 15% from 8.68p to 9.99p. The group raised its full year dividend ahead of market expectations, by 33% to 2.80p, maintaining the sharp increase seen at the interim stage; we had assumed a 1:2 split between the interim and final payments, implying a total of 2.4p. The increased dividend was covered 3.6 times.

Exhibit 2: Results breakdown

Year to March

H116
(£000s)

H216
(£000s)

FY16
(£000s)

H115
(£000s)

H215
(£000s)

FY15
(£000s)

Revenue

UK

Mainland Europe

US

Asia

32,054

23,998

2,332

19,758

78,142

32.102

30,032

2,270

18,824

83,228

64,156

54,030

4,602

38,582

161,370

31,989

21,171

1,903

18,970

74,033

33,474

25,145

2,408

19,681

80,708

65,463

46,316

4,311

38,651

154,741

Gross profit

22,882

25,122

48,004

21,458

23,417

44,875

Underlying operating profit

UK

Mainland Europe

US

Asia

3,239

2,921

247

3,764

10,171

2,933

3,959

154

2,966

10,012

6,172

6,880

401

6,730

20,183

2,920

2,877

193

2,661

8,651

2,912

3,584

134

3,070

9,700

5,832

6,461

327

5,731

18,351

Unallocated costs

{1,527)

(1,863)

(3,390)

(1,577)

(1,500)

(3,077)

8,644

8,149

16,793

7,074

8,200

15,274

Interest

(373)

(418)

(791)

(447)

(519)

(966)

Underlying pre-tax profit

8,271

7,731

16,002

6,627

7,681

14,308

Gross margin

29.3%

30.2%

29.7%

29.0%

29.0%

29.0%

Operating margin

11.1%

9.8%

10.4%

9.6%

10.2%

9.9%

Pre-tax margin

10.6%

9.3%

9.9%

9.0%

9.5%

9.2%

Source: Trifast results announcements. Note: Before amortisation of intangibles, share-based payments and exceptional items.

In essence, the impact of acquisitions, organic growth and an increase in gross margins combined to comfortably outweigh the adverse impact of the tough economic climate across much of continental Europe and the translation of overseas profits into sterling. Italian acquisition Viterie Italia Centrale (VIC) was consolidated for the full period compared to 10 months in the previous year, while there was a maiden six months’ profit contribution (£0.5m) from the more recent Kuhlmann acquisition.

Overall gross margins rose by a further 70bp to 29.7%, reflecting a combination of further improvement in the underlying businesses and the high returns earned at the recent acquisitions; this improvement contributed to a 50bp boost to operating margins from 9.9% to 10.4%.

The adverse impact of currency translation involved £3.9m revenue and £0.4m of underlying PBT. A 6.8% increase in constant currency (CER) was reduced to 4.3% after adjustments, largely related to the euro. Similarly, a 14.8% increase in underlying PBT was reduced to 11.8% in actual currency (AER).

We remain confident that the consistent rises in gross margins delivered over the past few years (29.7% in FY16 vs 24.5% in FY10) can at least be sustained. Management has established a business model whereby quality of product and service is seen by customers as fundamental to the development of their own businesses. Trifast continues to invest in people, training and the sales and marketing infrastructure.

UK (40% of FY16 revenue; 31% of operating profit)

Trifast has continued the rationalisation of lower-margin business in the UK, with the group generating better quality new contracts, especially in the automotive sector. Revenues edged 2.0% lower to £64.2m, but with a rise in margins from 8.9% to 9.6%, there was a 5.8% rise in operating profits to £6.2m. The message provided at the interim stage, when profits were running 11% higher, suggested a relatively flat market, with several key customers in automotive and electronics outperforming the market. Management has indicated that there was a softening in demand over the second half – we sense that this may involve an element of customer destocking stemming from increasing uncertainty about mainland European economies and, more specifically, fears about a possible Brexit. In addition, there was a strengthening of the sales team – this would have lifted the cost base, ahead of benefits to emerge over the next two to three years.

Investment by management to lift efficiency levels in inventory storage and stock picking should also start to deliver in the coming months, but conditions are likely to remain challenging in the immediate future.

Mainland Europe (33% of FY16 revenue; 34% of operating profit)

The potential for the group’s continental operations has been transformed by the VIC and Kuhlmann acquisitions, which have provided the group with key market positions in Italy and Germany, supplementing long-standing strategic positions in a number of other key continental markets. Last year’s results showed a 24.9% CER increase in revenues; while acquisitions were responsible for the majority of this growth, organic growth across the longer standing businesses was strong, at 10.9%, Weakness of the euro was a key factor on translation into sterling, but reported revenues (AER) rose by 16.7% to £54.0m. Underlying operating profits rose more modestly, by 6.4% (AER) to £6.9m.

Exchange rate movements undermined the margins at VIC, although the business continued to grow consistently. New investment in its manufacturing facilities has broadened the manufacturing plant’s capabilities and raised its capacity.

Kuhlmann has quickly been integrated into the group – its profits were at the upper end of management expectations, while the sales team has already been extended to facilitate the introduction of the wider Trifast product range across its customer base. The benefits should begin to emerge in the current year, with the real impact coming over the medium term.

The longer standing businesses continued to secure useful new contracts, especially supplying to the group’s core list of some 50 multinational customers. These contracts tend to be related to new products or product upgrades; revenues will emerge as these new products come to market delivering over the medium term.

Trading conditions across continental Europe remain challenging, but management sees this region as a major engine for growth in the immediate future and over the longer term, as the impact of management action filters through to revenue and profits.

US (3% of FY16 revenue; 2% of operating profit)

The group’s US business continues to move forward. Helped by a sound US dollar, revenues advanced by 7% to £4.6m, with operating profits up by 23% to £0.4m. Investment in top-line growth, supplying to a small number of key customers, continues to deliver increasing returns on a relatively modest cost base. The US remains a major opportunity for the group, with many of its core customers operating manufacturing plants. There are acquisition opportunities, but asking prices appear high, while most available businesses tend to be regional suggesting that several deals will be necessary to achieve a real presence; meanwhile, the current business continues to move forward steadily.

Asia (24% of H215 revenue; 33% of operating profit)

Following a challenging FY15, profits from the group’s Asian operations moved ahead strongly last year. Revenues were virtually unchanged, down 0.3% to £38.6m, but with a strong recovery in margins (up from 14.8% to 17.4%), underlying operating profits rose by 17.4% to £6.7m.

The strongest progress was achieved in Singapore, where revenues were lifted by 9.4% to an estimated £12m. Profits moved ahead sharply, especially during the first half, when there was a favourable currency movement contributing some £0.6m to the bottom line. In addition, deliveries began build up on a number of new contracts, especially those for one specific, but unnamed, domestic appliance industry customer.

We understand that operations in China and Taiwan delivered useful progress, despite media comment to the effect that growth rates are slowing. New investment in Taiwan, extending capacity, points positively to the future.

The main disappointment was, again, Malaysia where revenues slipped back by 8.3% to just under £11m. The statement refers to falling consumer demand and domestic market weakness – we would suggest that automotive sector demand was particularly quiet. The group completed a major plant investment during the final quarter. Again, the investment has lifted capacity, but has also brought certain disciplines in house. We see little improvement in the local economy in the short term, but some profit recovery can be expected in the current year.

There has been no further comment on the business extensions into India and Thailand (under the auspices of the Singapore management team) – this would suggest progress in line with management expectations, although positive returns are still some way into the future.

The overall picture for the group’s Asian operations remains positive. On present indications, there should be further profits progress in the current year, while the medium-term outlook has been enhanced by recent and current investment plans.

Strategy offers consistent returns

There are six distinct planks to the Trifast strategy, which was re-established in 2009, when former group executives were reinstated to invigorate a struggling group:

Multinationals – Trifast supplies some 60% of throughput to its top 50 customers. A key part of strategy is to lift the number of products and the number of manufacturing plants of these companies supplied by the group.

Investment – there is consistent investment to upgrade manufacturing and warehouse facilities to enable Trifast to offer the best possible service to customers.

Differentiate – Trifast is a solutions business, working with customers to enhance product reliability by offering tailor-made answers to problems.

Acquisitions – as an industry consolidator, Trifast is constantly looking at potential acquisitions that can add new products, technologies and/or customers.

Efficiency – by constantly assessing operational efficiencies, Trifast can provide the service that can justify above-average margins.

People – Trifast invests consistently in the development of its team; new people are introduced and prepared ahead of initiatives, while there are numerous ongoing training programmes.

Sensitivities

Cost-down pressures: equipment/machinery manufacturers operate in competitive markets, with pressure applied to all suppliers to keep prices down. These pressures are at their greatest in commodity-type products, especially in mass-production industries such as automotive. Fasteners are among the lowest-priced components in any product and Trifast’s ability to offer effective inventory management to customers can sometimes be used to counter these pressures.

Raw materials costs: fluctuating raw material costs cannot always be passed on quickly in competitive markets. We believe the type of customer being targeted by Trifast will be more concerned about supply chain management than the price paid for crucial low-cost components, but only to a certain extent. Distributors can suffer short-term margin pressures when their own price increases lag behind cost rises. Current conditions involve reducing feedstock prices, which should help margins, but as part of the group’s relationship with customers, these reductions will be relatively quickly passed on.

Stock obsolescence: Trifast will often hold buffer stocks of specialist components on behalf of certain customers (short production runs are rarely economical). Trifast will usually be made aware ahead of changes to product specification, because of work carried out on the design of replacement products, enabling it often to manage much of the risk.

Exchange rates: Trifast has a hedging strategy. However, the VIC and Kuhlmann acquisitions have substantially raised the exposure to the euro. Also, with Asia accounting for about a quarter of external revenues and a third of profit, fluctuations in Asian currencies relative to the US dollar, the euro and sterling may have an impact on margins. The majority of Asian production is sold locally, mitigating the impact, although many large contracts are priced in US dollars.

Global shifts: there has been a shift of manufacturing capacity from developed countries to lower-cost territories in Eastern Europe, Central and South America and, more specifically, India and the Far East. However, contracts for the supply of fasteners are frequently negotiated direct with parent companies, which have often not changed domicile. Trifast has developed extensive sourcing and manufacturing facilities, mostly in lower-cost territories. Management sees these shifts as an opportunity rather than a problem, especially when supplying to locally based component and sub-assembly producers.

Acquisitions: to achieve the group’s longer-term aspirations, acquisitions remain firmly on the agenda. Each of the recent deals demonstrates a remarkably good fit and was under negotiation for some considerable time before completion. There are always potential hazards with acquisitions, but the manner in which management has pursued its deals so far suggests that the level of risk is minimised.

Valuation

In the past we have compared Trifast with UK-based global electronic component distributors and overseas-based fastener distributors. Following the sale of its fastener business, Anixter (US) is no longer appropriate as a comparator, while the rating of Bossard is held back by the extent of family control. We have decided to concentrate on a short list of UK-quoted international distributors.

Trifast’s share price has risen by 17% over the past six months, much in line with the 15% average of the majority of its peer group; SIG has fallen by 10% reflecting cautious trading statements and its high involvement with the eurozone. The peer group table shows a distinct discount accorded to companies supplying the industrial sector. This is understandable in the context of the challenging global trading climate. However, we believe the market is not recognising Trifast’s consistent trading performances since the management changes in 2009. Its size relative to its peers could justify a lower rating, but this is more than balanced by the likely medium-term impact of recent investment decisions by management, including key acquisitions, which point positively to the future.

Exhibit 3: Distributors

Price
(p)

Market cap
(£m)

Revenue
(£m)

P/E 2016e
(x)

P/E 2017e
(x)

Brammer

178

230

717

11.8

10.3

Electrocomponents

285

1,256

1,291

20.3

17.8

Diploma

778

879

334

18.9

17.8

Bunzl

2,041

6,848

6,490

21.1

20.4

SIG

133

788

2,566

10.9

9.6

Trifast

132

154

162

12.8

12.1

Source: Bloomberg, Edison Investment Research. Note: Calendarised, based on earnings before intangible amortisation and exceptional items. Prices as at 10 June 2016.

Financials

Estimates raised

The global trading climate remains challenging, with mainland Europe still failing to sort out its endemic problems and South-East Asia, under the lead of China, indicating growth rates running below earlier forecasts. Nevertheless, management has indicated a strong order pipeline, especially related to the policy of working more closely with the group’s top 50 multinational customers. The current year will benefit from a full contribution from last year’s Kuhlmann acquisition, while the recent investment in extending group manufacturing and marketing capabilities should also start to contribute during the current year.

Our previous underlying FY17 PBT estimate of £16.5m is clearly looking conservative – we have decided to lift this target to £16.9m. We believe that this figure will prove conservative, but with currencies fluctuating quite sharply, because of the uncertainty surrounding the Brexit referendum, we have decided to maintain a cautious posture. It is quite likely that, as the year progresses, we shall be able to make a more optimistic assessment.

We remain positive about the medium-term outlook, with the clear strategy likely to deliver ongoing consistent earnings growth. We are introducing an estimate of £17.9m for the year to March 2018 – again, we are hopeful that this will prove conservative.

New facilities

Net borrowings rose by £2.6m to £16.0m over the year to March 2016; gearing stood at 19% of shareholders’ funds. The group generated £15.9m from operations, after a relatively modest £1.8m rise in working capital. With taxation, interest and dividends absorbing a total of £6.3m, there was £9.6m available for investment. Net capital spending was £2.3m, while acquisition expenditure net of funds/borrowings acquired lifted total net investment expenditure to £10.0m. Other factors, notably the impact of exchange rates on the translation of overseas cash and borrowings into sterling, led to an adverse movement of £2.2m.

In the absence of further acquisitions and assuming unchanged exchange rates, we would expect to see a net reduction of at least £2.0m in net borrowings over the year to March 2017. New facilities are being discussed with the group’s bankers. Management has indicated a likely £5m rise in the RCF, implying total of £50m, plus a £20m accordion facility. This would enable management to act quickly in response to appropriate investment opportunities.

Exhibit 4: Financial summary

£'000s

2012

2013

2014

2015

2016

2017e

2018e

Year end 31 March

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

112,510

121,544

129,775

154,741

161,370

170,000

178,000

Cost of Sales

(83,680)

(89,969)

(93,809)

(109,866)

(113,366)

(119,429)

(125,049)

Gross Profit

28,830

31,575

35,966

44,875

48,004

50,571

52,951

EBITDA

 

 

6,544

9,226

10,798

16,491

18,150

19,400

20,400

Operating Profit (before GW and except.)

 

 

5,629

7,971

9,696

15,274

16,793

17,800

18,700

Intangibles amortisation/impairments

(281)

(331)

(221)

(551)

(974)

(1,100)

(1,100)

Exceptionals

265

(389)

0

(1,167)

(264)

0

0

Share based payments

(227)

(91)

(67)

(741)

(1,687)

(1,200)

(1,200)

Operating Profit

5,386

7,160

9,408

12,815

13,868

15,500

16,400

Net Interest

(627)

(718)

(534)

(966)

(791)

(900)

(800)

Profit Before Tax (norm)

 

 

5,002

7,253

9,162

14,308

16,002

16,900

17,900

Profit Before Tax (FRS 3)

 

 

4,759

6,442

8,874

11,849

13,077

14,600

15,600

Tax

(1,597)

(1,734)

(2,276)

(3,455)

(2,852)

(4,300)

(4,550)

Profit After Tax (norm)

3,663

5,324

6,820

10,312

12,018

12,600

13,350

Profit After Tax (FRS 3)

3,162

4,708

6,598

8,394

10,225

10,300

11,050

Average Number of Shares Outstanding (m)

91.6

107.3

108.5

113.5

116.4

116.8

116.8

EPS - normalised (p) contg businesses

 

 

4.00

4.96

6.28

9.08

10.33

10.79

11.43

EPS - normalised fully diluted (p)

 

 

3.76

4.73

5.96

8.68

9.99

10.45

11.07

EPS - FRS 3 (p)

 

 

3.45

4.39

6.08

7.39

8.79

8.82

9.46

Dividend per share (p)

0.5

0.8

1.4

2.1

2.8

3.0

3.1

Gross Margin (%)

25.6%

26.0%

27.7%

29.0%

29.7%

29.7%

29.7%

EBITDA Margin (%)

5.8%

7.6%

8.3%

10.7%

11.2%

11.4%

11.5%

Operating Margin (before GW and except.) (%)

5.0%

6.6%

7.5%

9.9%

10.4%

10.5%

10.5%

BALANCE SHEET

Fixed Assets

 

 

32,417

32,692

30,044

49,057

57,595

57,695

57,395

Intangible Assets

17,869

18,366

16,959

32,162

38,259

37,159

36,059

Tangible Assets

13,292

13,360

11,828

15,623

17,171

18,371

19,171

Investment in associates

0

0

0

0

0

0

0

Deferred tax assets

1,256

966

1,257

1,272

2,165

2,165

2,165

Current Assets

 

 

69,424

68,437

73,774

92,735

100,438

106,867

113,115

Stocks

30,517

30,439

30,574

37,418

39,438

43,547

47,596

Debtors

26,295

27,248

27,665

39,864

43,386

46,706

49,904

Cash

12,612

10,750

15,535

15,453

17,614

16,614

15,614

Other

0

0

0

0

0

0

0

Current Liabilities

 

 

(40,946)

(34,578)

(37,903)

(49,052)

(52,813)

(52,367)

(49,640)

Creditors

(23,035)

(21,029)

(24,678)

(34,482)

(33,030)

(34,796)

(36,434)

Other creditors

(2,577)

(2,020)

(2,244)

(2,225)

(2,849)

(3,135)

(3,198)

Short term borrowings

(15,334)

(11,529)

(10,981)

(12,345)

(16,934)

(14,436)

(10,009)

Minority interests

0

0

0

0

0

0

0

Long Term Liabilities

 

 

(7,407)

(6,129)

(4,248)

(21,060)

(21,470)

(20,670)

(19,870)

Long term borrowings

(5,688)

(4,418)

(2,524)

(16,523)

(16,675)

(15,675)

(14,675)

Other long term liabilities

(1,719)

(1,711)

(1,724)

(4,537)

(4,795)

(4,995)

(5,195)

Net Assets

 

 

53,488

60,422

61,667

71,680

83,750

91,525

100,999

CASH FLOW

Operating Cash Flow

 

 

4,418

7,872

11,825

6,767

15,873

14,780

15,833

Net Interest

(627)

(718)

(534)

(966)

(804)

(900)

(800)

Tax

(678)

(1,427)

(1,809)

(4,639)

(3,080)

(3,938)

(4,488)

Capex

(381)

(851)

(826)

(1,389)

(2,323)

(2,800)

(2,500)

Acquisitions/disposals

(11,225)

(1,389)

0

(16,240)

(7,684)

(1,200)

0

Financing

7,177

233

84

494

181

0

0

Dividends

0

(534)

(867)

(1,569)

(2,440)

(3,444)

(3,619)

Other

49

27

(646)

2,097

(2,303)

0

0

Net Cash Flow

(1,267)

3,213

7,227

(15,445)

(2,580)

2,498

4,427

Opening net debt/(cash)

 

 

7,143

8,410

5,197

(2,030)

13,415

15,995

13,497

HP finance leases initiated

0

0

0

0

0

0

0

Other

0

0

0

0

0

0

0

Closing net debt/(cash)

 

 

8,410

5,197

(2,030)

13,415

15,995

13,497

9,070

Source: Trifast accounts, Edison Investment Research

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Research: Investment Companies

The European Investment Trust — Update 13 June 2016

The European Investment Trust

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