Triad Group Plc Reports Strong Profit Turnaround in Annual Results
Why we think this is good
Triad Group has demonstrated a remarkable turnaround in its financial performance. The company has swung from a loss to a significant profit, with pre-tax profit improving from a £1.3m loss to a £1.5m profit. Revenue growth was impressive at 52.5%, reaching £21.4m. Notably, both gross and operating margins saw substantial improvements, with the gross profit margin increasing from 20.1% to 28.6%. Cash position strengthened considerably, with cash reserves growing from £2.1m to £3.4m, supported by positive operating cash flow. The outlook appears positive, with good visibility on future work and ongoing recruitment to meet demand. However, the current P/E ratio of about 32.2 suggests a relatively high valuation, which may limit further short-term upside. While the overall picture is very positive, the high valuation leads to a 'GOOD' rather than 'VERY_GOOD' sentiment, as some of the positive news may already be priced in.
Key Points
- Profit before tax improved from £1.3m loss to £1.5m profit
- Revenue increased by 52.5% to £21.4m
- Gross profit margin rose from 20.1% to 28.6%
- Cash reserves grew from £2.1m to £3.4m
- Earnings per share improved from -6.10p to 9.93p
- Good visibility of future work for existing clients
- Ongoing recruitment to match demand
Summary
Triad Group Plc has reported impressive financial results for the year ended 31 March 2025. The company has achieved a remarkable turnaround, moving from a £1.3m loss to a £1.5m profit before tax. Revenue saw substantial growth of 52.5% to £21.4m, while gross profit margin improved from 20.1% to 28.6%. The company's cash position strengthened significantly, with cash reserves increasing to £3.4m from £2.1m. Earnings per share improved dramatically from -6.10p to 9.93p. The company reports good visibility of future work for existing clients and is actively recruiting to meet demand. While these results are very positive, it's worth noting that the current P/E ratio of about 32.2 suggests a relatively high valuation, which may limit short-term upside potential.