LONDON (Alliance News) - Tube manipulation company Tricorn Group PLC on Tuesday said its revenue for its recent financial year will miss its own expectations, but adjusted operating profit will meet market expectations.
Tricorn said slowing demand in key markets will mean revenue will fall 15% year-on-year for the financial year to the end of March, weaker than Tricorn's expectations. However, Tricorn said it has taken action to mitigate these issues and anticipates adjusted operating profit will meet market expectations for the year.
Tricorn said the main hit has come for its energy division, which has suffered from the downturn in oil and gas markets and weak demand from mining and power generation customers. Revenue for the energy arm is set to fall around 25% year-on-year.
In addition, Tricorn said its wholly-owned and joint venture operations in China were loss-making in the year amid difficult trading conditions. As a result, Tricorn will combine the activities of the two businesses into a single unit, which should cut its operational gearing and concentrate Chinese manufacturing for the company on a single facility in Nanjing.
Some of the challenges have been offset by good progress made by Tricorn's transportation arm, particularly in the US and thanks to a bigger contribution from its Maxpower Automotive business in the UK in the second half.
Tricorn will publish annual results on June 8.
Shares in Tricorn were down 7.5% to 7.40 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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