TCN.L Regulatory News (TCN)

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014, as implemented into English law ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain.

28 July 2021

Tricorn Group PLC

("TCN" or "the Company")

Company Update and Update on Formal Sale Process

Tricorn Group plc ('Tricorn', 'Company' or the 'Group'), (AIM: TCN.L) the tube manipulation specialist, provides the following update.

On 21 July 2021 the Board announced a strategic review. The options being considered included, but were not limited to, a sale of the Company to be conducted under the framework of a "formal sale process" in accordance with the Takeover Code, or the sale of one or more of the Company's operations. The Company and its advisers have engaged in discussions with a number of parties, with such discussions ongoing.

As set out in the Company's interim results published on 21 July 2021, Tricorn has experienced an extended period of challenging markets and turbulent trading. Disruptions to supplies, that are a systemic issue across global manufacturing at the moment, continue to impact the Company. Whilst customer demand is steadily improving and pass-through of prices increases to customers have in part been negotiated and continue to be discussed, the pressure on operating costs, margins and working capital in the near term continues, particularly as supply chain terms tighten and overdue debts from customers remain outstanding.

The Group continues to operate within its borrowing facilities, however, due to the reasons set out above, the Company's near term cash requirements have been adversely affected and there may be a requirement to operate beyond its existing facilities. Whilst the Group's principal lending bank is expected to remain supportive, certain restrictions on these facilities are being imposed. It is expected that such restrictions would be eased in the event of a successful sale of one or more of the Company's operations or an injection of funds, although there can be no certainty of a successful outcome in these matters.

The Company is working with its advisers towards a resolution and a further update will be provided as appropriate.

Enquiries

Notes to Editors:

Tricorn is a value added manufacturer and specialist manipulator of pipe and tubing assemblies to niche markets worldwide in the Energy and Transportation sectors. 

Headquartered in Malvern, UK, Tricorn employs approximately 240 employees and has five manufacturing facilities in the UK, USA and China.

Arden is authorised and regulated in the United Kingdom by the FCA and is acting exclusively for the Company and no one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to the customers of Arden or for providing advice in relation to the matters described in this announcement.

This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the Takeover Code and there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.

Publication on Website

A copy of this announcement will be made available at www.tricorn.uk.com no later than 12:00 noon (London time) on 29 July 2021 (being the business day following the date of this announcement) in accordance with Rule 26.1 of the Takeover Code. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

Forward-Looking Statements

This announcement contains statements which are, or may be deemed to be, "forward-looking statements" which are prospective in nature. All statements other than statements of historical fact are forward-looking statements. They are based on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of a date in the future or forward-looking words such as "plans", "expects", "is expected", "is subject to", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "targets", "aims", "projects" or words or terms of similar substance or the negative of those terms, as well as variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations or events that are beyond the Company's control.

Forward-looking statements include statements regarding the intentions, beliefs or current expectations of the Company concerning, without limitation, future revenues, economic performance, financial condition, and future prospects.

Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors may cause the actual results, performance or achievements of TCN to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. 

Neither TCN nor any of its Directors, officers or advisers provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. 

Other than in accordance with its legal or regulatory obligations (including under the AIM Rules and the Disclosure Guidance and Transparency Rules), TCN is not under any obligation and TCN expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

No Offer or Solicitation

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities or the solicitation of any vote or approval in any jurisdiction. Any offer (if made) will be made solely by certain offer documentation which will contain the full terms and conditions of any offer (if made), including details of how such offer may be accepted. This announcement has been prepared in accordance with English law and the Code, and information disclosed may not be the same as that which would have been prepared in accordance with laws outside of the United Kingdom. The release, distribution or publication of this announcement in jurisdictions outside of the United Kingdom may be restricted by laws of the relevant jurisdictions, and therefore persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

Nothing in this announcement is or should be relied on as a promise or representation to the future. This announcement includes certain statements, estimates and projections provided by the Company in relation to the Company's anticipated future performance. Such statements, estimates and projections are based on various assumptions made by the Company concerning anticipated results which may or may not prove to be correct. No representations or warranties are made by any person as to the accuracy of such statements, estimates or projections.