Shares of Trifast plc (TRI.L) were losing round 17 percent in London trading after the manufacturer of industrial fastenings Monday said its Board now expects fiscal 2024 results to be significantly below its previous expectations.
The company further announced a recovery action plan, including a Group restructuring programme to further reduce operating cost through around 10% cutback in non-operational staff globally.
In its trading update, the company said its revised revenue forecast is 230 million pounds and adjusted EBIT margin percentage of around 5%.
The previous consensus forecasts for the year were revenue of 254 million pounds and adjusted EBIT of 15.5 million pounds.
According to the firm, market conditions during the third quarter continued the previous trends of low visibility and volatile demand in a number of end market and geographic segments.
Further, performance in December 2023 was impacted by significantly lower than forecasted volumes in both Asia operations and global distribution sales channel.
Trifast said it had expected to see a recovery, demand conditions and excess customer inventory levels have pushed this recovery further into 2024, and that it now expects these challenging conditions to persist through to the end of the financial year.
"The more testing environment that we are now experiencing in 2024 in terms of growth is being severely impacted by a further slowdown in customer demand and volumes across the business and to an extent by the reported macro-economic challenges and geopolitical events," the company added.
The Group restructuring programme is expected to deliver additional annualised savings of around 3 million pounds. The company is also undertaking a strategic review of global footprint to identify further cost efficiencies which will reset business for the future.
The company will provide more detail on the restructuring, strategic plans and progress at the time of annual results scheduled to be released in July 2024.
In London, Trifast shares were trading at 77.20 pence, down 17 percent.
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