Trifast has given a reassuring H1 update, confirming that trading is in line with management expectations and that progress looks set to continue for FY16 as a whole. Management remains positive on the outlook for fasteners and the opportunities for Trifast to deliver organic and acquisitive growth within that market, but has sounded a slight note of caution regarding the potential impact on global markets from slowing Chinese demand. We are alert to the risks to the whole capital goods sector from declining Chinese demand, but consider that Trifast has a strong track record of performance even in more challenging markets. The shares remain good value in our view, trading on a c.15% discount to the sector.
