Image source: Shutterstock

Highlights
  • TIFS’ FY23 showcased a 7.6% YoY revenue growth and a decent turnaround in adjusted earnings per share from negative to positive.
  • The company’s operating profit surged by 412.80% in FY23 driven by commercial performance and cost reduction initiatives.
  • The company’s dividend payment per share witnessed a substantial 168.9% YoY growth in FY23.

TI Fluid Systems PLC (LSE: TIFS) is an automotive components firm based in the UK. Listed on the FTSE 250 index, the company specializes in producing engineered systems for fluid storage, transport, and delivery, operating across two divisions: Fluid Carrying Systems (FCS) and Fuel Tank and Delivery Systems (FTDS).

Financial insights of FY23

Driven by capitalisation on industry volume growth, new program launches and execution of commercial strategy, the company's top-line revenue demonstrated year on year (YoY) increment of 7.6%. Similarly, its adjusted earnings per share witnessed a favourable turnaround from negative 54.4 eurocents per share in FY22 to a positive 16.20 eurocents per share for FY23.

Backed by commercial performance and combined with cost reduction activities, the company’s operating profit also improved by 412.80%.

The company reported higher EBITDA margin in FY23 (20.7%), compared to industry median of 19.7%. Further, its debt-equity ratio was also lower, 0.05x in FY23 versus the industry median of 0.13x.

Dividend Growth: TIFS has shown around 168.9% YoY growth in total dividend payment per share for FY23. The company has intended to pay a final dividend of 4.53 euro cents per share for FY23. However, it hasn’t announced the dates yet.

FY24 Guidance: TIFS strives to increase its FY23 achievement of a 7.4% Adjusted Earnings before interest and taxes (EBIT) margin in FY24. Additionally, the company aims for an Adjusted Free Cash Flow conversion of roughly 30% of Adjusted EBITDA during the same fiscal year.

Company outlook

The company is confident in reaching its mid-term goals, which include attaining a revenue range of €3.8-4.2 billion by 2026 and restoring a double-digit Adjusted EBIT margin. In general, the company aims to leverage the strengths of its traditional portfolio alongside the opportunities presented by electrification.

Top 10 Shareholders

 The combined ownership of the top 10 shareholders accounts for approximately 61.45% of total shares in the company. BC Omega Holdco, Ltd. holds the maximum number of shares with ~27.62% shareholding, followed by Liontrust Investment Partners LLP with ~11.11% shareholding, as depicted in the chart below: 

Price performance

The stock has seen a decline of ~3.52% in the last one month and over the last 6 months, it has fallen by ~20.29%. The stock’s 52-week low and high price stand at GBX 97.90 & GBX 172.25, respectively. At present, it is trading higher than the average of 52-week high-low.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 12 April 2024. The reference data in this report has been partly sourced from EODHD/Others.