TCN.L Regulatory News (TCN)

7 December 2020

Tricorn Group plc

("Tricorn", the "Company" or the "Group")

Further Post-Period End Update

Tricorn Group plc (AIM: TCN.L), the AIM listed tube manipulation specialist, provides the following update to its Post-Period End Update released on 16 November 2020 (the "Post-Period End Update Announcement") in which it identified a balance sheet exposure risk as at 30 September 2020 of approximately £3.6m excluding an inter-company imbalance of approximately £1.0m. In particular, an update on the two items, being the inter-company imbalance of approximately £1.0m referred to above and approximately £1.0m out of a total of £2.5m adjustments in the UK, that were reported in the Post-Period End Update Announcement as still being subject to further investigation, is provided below.

The Group has identified that approximately £0.2m of the inter-company imbalance is attributable to foreign exchange movements which relate to, and were identified and recognised in, its audited results for the year ended 31 March 2019. Work is continuing to identify the residual imbalance of approximately £0.8m.

The £1.0m adjustment in the UK has now largely been identified as relating to an understatement of historic liabilities which now needs to be recognised in the Group's audited financial results for the 18 months ended 30 September 2020. These are non-cash in nature.

Under the direction of the Group Finance Director, Michael Stock, who joined the Group on 3 August 2020, and supported by the recently appointed finance team, a significant number of improvements to the Group's financial controls and processes have now been implemented. The design, implementation and effectiveness of these controls and processes will be subject to further review through the audit process which is expected to commence when the outstanding matters referred to above have been resolved. Further announcements will be made as appropriate and/or further information becomes available.

Concurrent with the continuing work described above, and in addition to those already conducted at West Bromwich and Malvern in October 2020, the Group is conducting a further stocktake at both of its UK sites during December 2020. This will help further support the integrity of ongoing margins in the current financial year.

Trading remains largely unchanged from that provided in the Post-Period End Update Announcement with demand levels from a number of customers increasing and providing additional availability in the UK from the Group's invoice discounting facility. Of a total invoice discounting facility of £3.0m, as at 7 December 2020, the Group generated funding availability of approximately £2.0m (advanced at 90%) and had been fully drawn. Cash balances for the Group as at 7 December 2020 were approximately £0.7m.

For further information please contact:

Tricorn Group plc www.tricorn.uk.com

Andrew Moss, Chairman Tel +44 (0)7768 306 701

Mike Welburn, Chief Executive Tel +44 (0)7766 252 032

Michael Stock, Group Finance Director Tel +44 (0)7894 784 106

Shore Capital Tel +44 (0)20 7408 4080

Tom Griffiths

David Coaten

Henry Willcocks

Notes to Editors:

Tricorn is a value-added manufacturer and specialist manipulator of pipe and tubing assemblies to niche markets worldwide.

Headquartered in Malvern, UK, Tricorn employs around 300 employees and has five manufacturing facilities in China, USA and UK.