Sussex-based nuts and bolts manufacturer Trifast reported a slump in annual pre-tax profits - but said the new financial year had started well.

The Uckfield group said pretax profits were £2.55 million down from £6.14 million last year.

Revenues had increased to £117 million from £103 million. A rise in the cost of materials, high energy prices and the impact of new wireless technology on the production line contributed to a "tough year".

But the group, which employs 1,150 people worldwide, said the outlook had improved since April despite the market remaining competitive.

Chairman Anthony Allen said: "The group is performing in line with expectations and we look forward to making further progress at the interim."

Trifast has made two acquisitions in the past year. In October it bought Worcestershire-based distribution company Serco Ryan for £17 million.

That was followed in February by the £1.2 million purchase of Keba Fastener Solutions, a privately owned company based in Turkey.

The merger with Serco, which supplies industrial fasteners and cutting tools to the railway, boat building and housing sectors, has already helped reduce costs.

But Keba - which is now branded TR Keba - was not expected to make a "material contribution" to Trifast until next year.

Trifast - winner of company of the year at the Sussex Business Awards in 2004 - has also opened a plant in China to tap into the Far East market.

The group said profits from its Asian operations, which included factories in China, Singapore and Taiwan, were up 14 per cent to £4 million.

Trifast chief executive Jim Barker said: "This has been a year of significant change and development with new structures, strategic acquisitions, new markets and, overall, a positive outlook.

"The work of the past twelve months has created a solid structure on which to build for our future and the group is well placed to take advantage of opportunities emerging in Europe and Asia."

Tuesday, June 27, 2006