TCN.L Regulatory News (TCN)

14 Dec 2006 07:01

Tricorn Group PLC14 December 2006 Tricorn Group plc Interim Results 2006/7 Tricorn Group plc today announced its results for the six months ended 30thSeptember 2006. 2006 2005 Change (Apr/Sept) (Apr/Sept) £'000 £'000 Sales 5,000 3,112 +61% Operating Profit* 476 292 +63% Profit before Tax* 431 265 +63% Adjusted earnings per share* 1.09p 0.85p +28% * before goodwill amortisation and FRS 20 charges The six months ended the 30th September 2006 have seen record results with aGroup operating profit of £476k (2005: £292k) and profit before tax of £431K(2005:265k). Adjusted earnings per share were up 28% at 1.09p (2005:0.85p). Malvern Tubular Components (our tube manipulation specialist) grew by 11%primarily through market share gains as we continued to work hard on improvingcustomer value. We further extended our component purchases from lower costcountries as part of our drive to reduce our cost base. Redman Fittings generated useful profits and sales recovered from the small dipat the end of our previous year. At the recently acquired company RMDG Aerospace sales have remained strong andwe have made good progress with our planned operational improvements. The shopfloor has been completely reorganised to improve work flow and leanmanufacturing techniques introduced. Productivity has already shown asignificant rise and further gains are anticipated as internal teams work onmore detailed improvements. Another specialised action team began identifying purchased components thatcould be moved to low cost countries and our first orders have just been placed. A reduction in overheads is planned for the second half of the year which willresult in rationalisation costs but will yield good long term savings. Overall we are making extremely good progress in reducing the Group's cost baseand our target of RMDG making a significant contribution to profits in the year07/08 is well on track. The outlook for the Group as a whole remains very positive with the powergeneration sector remaining strong, aerospace expanding and our drive forreduced costs continuing to be successful. We anticipate continuing our strong improvement in financial performancethrough the year and will continue to look for acquisition opportunities incomplementary activities. Tricorn Group plcUnaudited Interim Results for the six months to 30th September 06 Consolidated Summarised Profit and Loss AccountFor the six months to 30th September 2006 6 Months 6 Months 12 Months to 30/9/06 to 30/9/05 to 31/3/06 Note £,000 £,000 £,000TurnoverContinuing operations 3,211 3,112 6,202Acquisitions 1,789 - - --------- --------- --------- 5,000 3,112 6,202Cost of sales (3,014) (1,686) (3,220) --------- --------- ---------Gross Profit 1,986 1,426 2,982 Distribution costs (218) (134) (261)Administration expenses beforegoodwill amortisation and FRS 20 charges (1,292) (1,000) (2,067)Goodwill amortisation (26) (7) (15)FRS 20 charges (24) - - --------- --------- ---------Operating profitContinuing operations 401 285 639Acquisitions 25 - - --------- --------- ---------Profit on ordinary activities before interest 426 285 639 Net Interest payable (45) (27) (38) --------- --------- --------Profit on ordinary activities before taxation 381 258 601Taxation (94) - 37 --------- --------- -------- Profit on ordinary activities after taxation 287 258 638 ===== ===== ===== Earnings per ordinary share 2 0.92p 0.83p 2.06p ===== ===== ===== Diluted earnings per ordinary share 2 0.86p 0.77p 2.05p ===== ===== ===== There were no recognised gains or losses other than the profit for the financial period Consolidated Summarised Balance SheetAt 30th September 2006 30/9/06 30/9/05 31/3/06 Note £,000 £,000 £,000 Fixed AssetsIntangible assets 599 68 60Tangible assets 798 647 544 --------- --------- --------- 1,397 715 604 --------- --------- ---------Current AssetsStocks 2,089 738 578Debtors 3,000 1,382 1,464Cash in bank and in hand 99 575 998 --------- --------- --------- 5,188 2,695 3,040Creditors:Amounts falling due within one year (4,007) (1,497) (1,384) --------- --------- ---------Net current assets 1,181 1,198 1,656 --------- --------- --------- Total assets less current liabilities 2,578 1,913 2,260Creditors:Amounts falling due after more than one year (82) (93) (75) Provisions for liabilities and charges (79) (73) (55) --------- --------- --------- 2,417 1,747 2,130 ===== ===== ===== Capital and reservesCalled up share capital 3,102 3,100 3,102Share premium account 1,371 1,371 1,371Other reserve 1,388 1,388 1,388Profit and loss account (3,444) (4,112) (3,731) --------- --------- ---------Equity shareholders' funds 3 2,417 1,747 2,130 ===== ===== ===== Consolidated Summarised Cash Flow StatementFor the six months to 30th September 2006 6 Months 6 Months 12 Months to 30/9/06 to 30/9/05 to 31/3/06 Note £,000 £,000 £,000 Net cash inflow from operating activities 4 645 492 936 Returns on investments and servicing of financeInterest received 9 8 23Interest paid (47) (27) (46)Finance lease interest paid (7) (8) (15) --------- --------- ---------Net cash outflow from returns on investments andservicing of finance (45) (27) (38) --------- --------- --------- Taxation - - 41 Capital expenditurePayments to acquire tangible fixed assets (2) (11) (30)Proceeds from sale of tangible fixed assets 74 10 - --------- --------- ---------Net cash outflow for capital expenditure 72 (11) (20) --------- --------- --------- AcquisitionsPurchase of subsidiary undertaking 8 (2,248) - - Net overdrafts acquired with subsidiary 8 (485) - - --------- --------- ---------Net outflow for acquisitions (2,733) - - --------- --------- ---------Net cash (outflow)/inflow before financing (2,061) 454 919 Management of liquid resourcesFunds withdrawn/(deposited) on treasury reserve 915 - (915) Financing Issue of ordinary share capital - - 2 Share issue costs - - - Repayment of loans - - - Capital element of finance lease rentals (25) (35) (70) --------- --------- ---------Net cash outflow from financing (25) (35) (68) --------- --------- ---------(Decrease)/increase in cash 5 (1,171) 419 (64) ===== ===== ===== Notes to the Financial StatementsFor the six months to 30th September 2006 1. Basis of preparation The interim financial statements have been prepared under the historical costconvention, on bases consistent with the previous year, and in accordance withapplicable accounting standards. The principal accounting policies of the Group have remained unchanged fromthose set out in the Group's 2006 annual report and financial statement, exceptthat FRS 20 "Share Based Payments" has been implemented for the 6 months ended30 September 2006. The effect on comparatives is immaterial and therefore nocomparatives have been adjusted. 2. Earnings per Share The calculation of the basic earnings per share is based upon the profit onordinary activities after tax and on the weighted average number of shares inissue during the period. The calculation of the diluted earnings per share is based on the profit onordinary activities after tax and on the weighted average number of ordinaryshares and share options in issue during the period. The diluted earnings pershare is not shown where the share options are antidilutive. The profits and weighted average number of shares used in the calculation areset out below: 6 Months 6 Months 12 Months to 30/9/06 to 30/9/05 to 31/03/06 Weighted Weighted Weighted average Earnings average Earnings average Earnings Profit number of per Profit number of per share Profit number of per shares share shares shares share £,000 pence £,000 pence £,000 pence Basic earnings per share 287 31,020,000 0.92p 258 31,000,000 0.83p 638 31,000,641 2.06p ===== ===== ===== ===== ===== ===== Dilutive effect of share options 2,353,800 2,622,500 187,053 Diluted earnings per share 33,373,800 0.86p 33,622,500 0.77p 31,187,694 2.05p ======== ===== ======== ===== ======== ===== Earnings per share beforegoodwill amortisation and FRS 20 charges 337 31,020,000 1.09p 265 31,000,000 0.85p 653 31,000,641 2.11p ===== ===== ===== ===== ===== ===== Dilutive effect of share options 2,353,800 2,622,500 187,053 Diluted earnings per share beforegoodwill amortisation and FRS 20 charges 33,373,800 1.01p 33,622,500 0.79p 31,187,694 2.10p ======== ===== ======== ===== ======== =====Reconciliation of basic earnings toearnings before goodwill amortisation and FRS 20 charges £,000 £,000 £,000 Basic earnings 287 258 638 Goodwill amortisation 26 7 15FRS 20 charges 24 - - Earnings on ordinary activities after goodwill amortisation and FRS 20 charges 337 265 653 ===== ===== ===== 3. Reconciliation of movements in shareholders' funds 6 Months 6 Months 12 Months to 30/9/06 to 30/9/05 to 31/3/06 £,000 £,000 £,000 Profit for the period 287 258 639Issue of shares 2 - - --------- --------- ---------Net increase in shareholders' funds 287 258 641 Shareholders' funds at start of period 2,130 1,489 1,489 --------- --------- ---------Shareholders' funds at end of period 2,417 1,747 2,130 ===== ===== ===== 4. Reconciliation of operating profit to net cash inflow/(outflow) from operating activities 6 Months 6 Months 12 Months to 30/9/06 to 30/9/05 to 31/3/06 £,000 £,000 £,000 Operating Profit 426 285 639Depreciation 98 78 194Amortisation 27 7 15Loss on disposal of tangible assets - - 2(Increase)/decrease in stocks (254) (17) 144(Increase)/decrease in debtors 312 171 89Increase/(decrease) in creditors 36 (32) (147) --------- --------- ---------Net cash inflow/(outflow) from operating activities 645 492 936 ===== ===== ===== 5. Reconciliation of net cash flow to movement in net funds 6 Months 6 Months 12 Months to 30/9/06 to 30/9/05 to 31/3/06 £,000 £,000 £,000 (Decrease)/increase in cash (1,171) 419 (64)Cash used to repay capital element of finance leaseand hire purchase agreements 25 35 70Cash outflow from movement in loans - - -(Decrease)/increase in liquid funds (915) - 915 --------- --------- ---------Change in net debt resulting from cashflows (2,061) 454 921New finance leases and hire purchase contracts (36) (35) (35) --------- --------- ---------Movement in net debt (2,097) 419 886Net funds/(debt) at start of period 510 (376) (376) --------- --------- ---------Net (debt)/funds at end of period (1,587) 43 510 ===== ===== ===== 6. Analysis of changes in net debt At At 31 March Non-cash 30 Sept 2006 Cash flow movements 2006 £,000 £,000 £,000 £,000 Cash at bank and in hand 84 15 - 99Invoice discounting facility (374) (1,186) - (1,560) --------- --------- --------- --------- (290) (1,171) - (1,461)Finance leases and hire purchase contracts (115) 25 (36) (126)Liquid resources 915 (915) - - --------- --------- --------- --------- 510 (2,061) (36) (1,587) ===== ===== ===== ===== 7. Publication of non-statutory accounts The financial information set out in this interim announcement does notconstitute statutory accounts as defined in section 240 of the Companies Act1985. 8. Acquisition On June 6th 2006 the Group acquired RMDG Aerospace Limited for a cost of £2.248m.A summary of the assets and liabilities acquired is as follows: £,000 Fixed Assets 388Stock 1,257Debtors 1,848Bank 77Creditors (1,310)Invoice discounting facility (562)Goodwill 550 --------- 2,248 =====Satisfied by:Cash 2,248 ===== Contact: Steven Cooper Tel: +44 (0) 1684 569956 This information is provided by RNS The company news service from the London Stock Exchange