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Flotation windfall for Trifast founders

Robert Cole
Wednesday 26 January 1994 19:02 EST
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TWO founders of Trifast, the Sussex-based manufacturer and distributor of nuts and bolts, will enjoy a pounds 10m payday when the company is floated on the stock market next month, writes Robert Cole.

Michael Timms and Michael Roberts no longer have management positions at Trifast but own 90 per cent of the company they established. Both men are in their mid-forties and are enjoying a life of leisure.

The flotation will value Trifast at between pounds 25 and pounds 30m. Mr Timms and Mr Roberts are selling half their holdings. After the listing the pair's combined investment will be diluted to 48 per cent.

Trifast's main business is supplying a range of 70,000 metal fasteners to more than 3,500 customers. It counts the electronics companies Philips and Sony among its clients.

In a pathfinder prospectus published yesterday the company said it would make pre-tax profits of pounds 2.5m for the year ending 31 March, up from pounds 1.9m last time. The pre- tax profit margin is set to widen from 8.5 to 9 per cent.

The current management team is headed by Malcolm Diamond. Existing directors own 10 per cent of the shares and will sell 3 per cent. The flotation share price will be decided on 9 February.

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