Trifast delivered another year of strong growth in FY16, with PBT increasing by 12% in line with our expectations and stronger than expected DPS. The group remains focused on increasing its penetration of its large OEM customers, and winning new ones, which delivered solid organic growth in FY16 despite an uncertain industrial backdrop. FY17 looks set to be another good year, with an encouraging enquiry pipeline, a full 12 month contribution from the Kuhlmann acquisition, cross-selling opportunities and an FX tailwind. Our PBT forecasts are unchanged, but we have increased our EPS forecasts slightly due to lower tax rate assumptions, and increased our DPS by 17% pa. We have increased our target price from 148p to 152p and reiterate our Buy recommendation.
