Trifast’s pre-close statement shows strong margin progression despite weak end-markets. FY26e sales (March Y/E) are expected to be c.7% lower YoY but gross margin is set to increase by 150bps to c.30% with operating margins +90bps to 7.8%, reflecting management’s continued focus on commercial discipline and cost efficiency. This drives a FY26e adj. EBIT of c. £16m, in line with consensus, and c.9% higher YoY. The rationalisation of the Malaysian footprint along with some softness in the Middle East, will have a modest impact on FY27e but our investment thesis is unchanged. Trifast is becoming a leaner, more agile business, with scope for attractive medium-term earnings growth (SCM 27% EPS CAGR to FY28e). Trading on a FY27e PER of 8.8x, the shares do not reflect the scale of operational progress coming through.
