LONDON (Alliance News) - Tricorn Group PLC Wednesday said revenue in the first half will be lower year-on-year but said its adjusted pretax profit will "substantially ahead" of the profit reported a year ago.
The developer and manufacturer of pipes said revenue in the first half ended September 30 will be around 5% lower year-on-year. Tricorn said increased revenue in the US and China is helping to offset lower demand being experienced predominantly in the UK Transportation business.
However, Tricorn said its first half profit before tax, restructuring costs, amortisation, share based charges and foreign exchange will be "substantially ahead" year-on-year and "at least in line" with the second half of the last financial year ended March 31.
The US transportation division, Franklin Tubular Products, increased revenue in the first half through new business growth and delivered "substantial improvements" in operational performance and is making a "significant contribution" to group profits, it said.
In the UK, Maxpower Automotive experienced further reductions in demand from its key customers as a result of softer end markets. However, the new production line to support the GBP10.0 million contract announced in December is now operational and provides an opportunity to offset this, it said.
In China, Tricorn has seen revenue increase over year-on-year in the first half, but at a slower rate as the company takes steps to lower operational costs in China.
Its energy division, Malvern Tubular Components delivered further improvements in productivity in the first half, partially offsetting the impact of revenue which was around 3% lower in the first half year-on-year.
Tricorn will publish its results for the first half ended September 30 on December 2.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
