Tricorn Group PLC - pipe manufacturer based in Malvern, Worcestershire - Considering funding options, as borrowing facilities alone will not be enough to provide it with necessary cash to return to profitable cash generation. Swings to pretax loss in 18 months to September 30, 2020 of GBP7.7 million from GBP950,000 profit in financial 2019. Revenue for the same period grows 11% to GBP25.4 million in the 18-month period from GBP22.8 million in the 12-month comparison.
"Since February 2020, as a result of the global pandemic, Tricorn has experienced an extended period of challenging markets and turbulent trading," the company says.
"While the group is currently operating within its borrowing facilities, these facilities alone will not provide the group with the necessary cash to make the required investment to deliver the strategy and return the group to profitable cash generation", Tricorn adds.
Looking ahead, Tricorn anticipates that the pandemic's impact and shipping delays of imported material will continue to put pressure on labour costs and labour productivity in the short term. However despite challenges it notes it has made a "solid start to the year", with revenue for the first half in line with a year prior and up 33% on the previous six month period ended September 30.
Current stock price: 6.50 pence, down 21% on Wednesday
Year-to-date change: up 4.0%
By Will Paige; willpaige@alliancenews.com
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