TCN.L Regulatory News (TCN)

14 Jun 2005 07:00

Tricorn Group PLC14 June 2005 TRICORN GROUP PLC Press Release 14th June 2005 Tricorn Group plc Preliminary results for the year ended 31 March 2005 Tricorn Group plc, the developer, manufacturer and supplier of products for theenvironmental engineering market, reports its preliminary results for the yearended 31 March 2005. Highlights: - Continued financial improvement with restated PBT of £191k for the year- Headline sales growth of 9.5%- Strong operating cashflow generation- Disposal of loss making software business- Further productivity gains at MTC Commenting on the results, Nick Paul, Chairman, said: "The Board are very pleased to announce a move into profitability. We continueto see the benefits from reshaping the Group and reducing our costs. Inaddition, a clear focus on developing strong customer relationships in keymarket areas has helped generate good growth in our core businesses. The outlook for the coming year is positive and we anticipate continuing growthin sales and profits. " For further information, please contact: Tricorn Group plcTel: +44 (0)1684 569956 Steve Cooper,CEOEmail: corporate @tricorn.uk.com Websites: www.tricorn.uk.comwww.redmanfittings.comwww.mtc.uk.com TRICORN GROUP PLC ("the Group") STATEMENT ACCOMPANYING THE RESULTS FOR THE YEAR ENDED 31ST MARCH 2005 The year ended 31 March 2005 has seen strong growth in continuing Tricornoperations coupled with a sharp move to profitability in the last six months ofthe year. The trading performance of the Group for the twelve months ended 31March 2005 shows turnover of £6.1 million (2004: £5.6 million) producing aprofit before taxation of £191,000 (2004: loss of £94,000) before goodwill writeoff of £15,000 and disposal of discontinued operations of £432,000 (whichincludes an additional goodwill write-off of £517,000). Loss per share is 1.06p(2004: 0.31p loss) but the adjusted earnings per share after excluding the losson disposal of the intellectual property rights for the PipeHorizon software is0.33p (2004: loss 0.58p). Malvern Tubular Components (our tube manipulation specialist) grew sales by 20%year on year driven by continued strong demand and useful market share gains. We continued to extend our component purchases in lower cost countries, whichmore than offset increases in raw material prices, and a highly creditableproductivity improvement of 21% was achieved in the MTC factory. Redman Fittings sales grew by a healthy 40% in this extremely conservativemarket. Good progress was made in the UK and interest is building on thecontinent of Europe. At ISS, as reported at the interim announcement, we sold the intellectualproperty rights for the PipeHorizon software to Advantica in November 2004 andclosed down the loss making software activity. ISS is now focussed on Pipe LineInspection Vehicle design projects for the water industry. A design feasibilityanalysis has just been completed for a major water utility. The outlook for the Group is extremely positive, with the economic climate inour major markets remaining strong and our drive for reduced costs continuing tobe successful. CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT For the year ended 31 March 2005 ------------------- 2005 ----------------- 2004 Note Before goodwill Goodwill amortisation amortisation and loss on and loss on disposal of disposal of discontinued discontinued operation operation Total Total £'000 £'000 £'000 £'000Turnover 6,075 - 6,075 5,551 Cost of sales (3,386) - (3,386) (3,091) Gross profit 2,689 - 2,689 2,460 Distribution costs (215) - (215) (57)Administrative expenses before goodwillamortisation (2,195) - (2,195) (2,375)Administrative expenses - goodwill - (15) (15) (76)amortisation Operating profit/(loss) 279 (15) 264 (48) Profit on disposal of freehold property - - - 76 Loss on disposal of discontinued operation - (432) (432) - Interest receivable 11 - 11 - Interest payable and similar charges (99) - (99) (122) Profit/(loss) on ordinary activitiesbefore taxation 191 (447) (256) (94) Tax on loss on ordinary activities 2 (73) 6 Retained loss on ordinary activities 4after taxation (329) (88) Loss per ordinary share - basic 3 (1.06p) (0.31p) Earnings/(loss) per ordinary shareprior to loss on disposal ofdiscontinued operation and profit ondisposal of fixed asset - basic 3 0.33p (0.58p) There were no recognised gains or losses other than the loss for the financial year.The results of the discontinued operations are not shown separately as they are not material to the Group results. CONSOLIDATED SUMMARISED BALANCE SHEET AT 31 MARCH 2005 Note 2005 2004 £'000 £'000Fixed assetsIntangible assets 75 607Tangible assets 685 670 760 1,277 Current assetsStocks 721 672Debtors 1,553 1,318Cash in bank and in hand 261 477 2,535 2,467 Creditors:Amounts falling due within one year (1,647) (1,881) Net current assets 888 586 Total assets less current liabilities 1,648 1,863 Creditors:Amounts falling due after more than one year (86) (45) Provisions for liabilities and charges (73) - 1,489 1,818Capital and reservesCalled up share capital 3,100 3,100Share premium account 1,371 1,371Merger reserve 1,388 1,388Profit and loss account (4,370) (4,041)Equity shareholders' funds 4 1,489 1,818 CONSOLIDATED SUMMARISED CASH FLOW STATEMENTFor the year ended 31 March 2005 Note 2005 2004 £'000 £'000 Net cash inflow/(outflow) from operating activities 5 315 (255) Returns on investments and servicing of financeInterest received 11 -Interest paid (82) (81)Finance lease and hire purchase interest paid (17) (40) Net cash outflow from returns on investments andservicing of finance (88) (121) Taxation 76 13 Capital expenditure and financial investmentPayments to acquire tangible fixed assets (80) (54)Receipts from sale of tangible fixed assets 11 1,171 Net cash (outflow)/inflow from capitalexpenditure and financial investment (69) 1,117 Acquisitions and disposalsSale of business 86 - Net cash inflow before financing 320 754 FinancingIssue of ordinary share capital - 340Share issue costs - (9)Repayment of loans (240) (385)Capital element of finance lease rentals (79) (129)Net cash outflow from financing (319) (183) Increase in cash 6 1 571 NOTES TO THE PRELIMINARY ANNOUNCEMENTFor the year ended 31 March 2005 1. Basis of Preparation The preliminary announcement has been prepared under the historical cost convention, on bases consistent with the previous year, and in accordance with applicable accounting standards. The principal accounting policies of the Group are set out in the Group's 2005 annual report and financial statements. 2. Taxation charge/(credit) on Loss On Ordinary Activities 2005 2004 £'000 £'000 Tax credit in respect of research and development expenditure - (24) Adjustment in respect of prior year - 18 Total current tax - (6) Deferred taxation 73 - 73 (6) Unrealised tax losses of approximately £1,020,000 (2004: £1,350,000) remain available to offset against future taxable trading profits. 3. (Loss)/earnings per share The calculation of the basic loss per share is based on the loss on ordinary activities after tax and on the weighted average number of ordinary shares in issue during the year. The adjusted earnings/(loss) per share is calculated excluding the impact of the loss on disposal of discontinued operations and profit on disposal of freehold property. The (losses)/profits and weighted average number of shares used in the calculations are set out below: 2005 2004 Weighted (Loss)/ Weighted (Loss)/ average earnings average Loss per profit number of per share Loss number of share £'000 shares pence £'000 shares pence Basic loss per share (329) 31,000,000 (1.06) (88) 27,815,811 (0.31) Loss on disposal of discontinued operations 432 1.39 - - Profit on disposal of freehold property - - (76) (0.27) Adjusted earnings/(loss) per share 103 31,000,000 0.33 (164) 27,815,811 (0.58) The share options in issue are anti dilutive in 2005 and 2004. 4. Reconciliation of movements in shareholders' funds 2005 2004 £'000 £'000 Loss for the year (329) (88) Issue of shares (net of issue costs) - 331 Net (reduction)/increase in shareholders' funds (329) 243 Shareholders' funds at 31 March 2004 1,818 1,575 Shareholders' funds at 31 March 2005 1,489 1,818 5. Reconciliation of operating profit/(loss) to net cash inflow/(outflow) from operating activities 2005 2004 £'000 £'000 Operating profit/ (loss) 264 (48) Depreciation 163 198 Amortisation 15 76 Loss on sale of tangible fixed assets 3 23 Increase in stocks (50) (50) Increase in debtors (310) (118) Increase/(decrease) in creditors 230 (336) Net cash inflow/(outflow) from operating activities 315 (255) 6. Reconciliation of net cash flow to movement in net debt 2005 2004 £'000 £'000 Increase in cash 1 571 Cash used to repay capital element of finance lease and hire purchase agreements 79 129 Cash outflow from movement in loans 240 385 Change in net debt resulting from cashflows 320 1,085 New finance leases and hire purchase (114) (15) contracts Movement in net debt 206 1,070 Net debt at 1 April 2004 (582) (1,652) Net debt at 31 March 2005 (376) (582) 7. Publication of Non-statutory Accounts The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The summarised balance sheet at 31 March 2005, and the summarised profit and loss account, summarised cash flow statement and associated notes for the year then ended have been extracted from the Group's statutory financial statements upon which the auditors opinion is unqualified and does not include any statement under Section 237 of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange