7 Oct 2014 07:00
7 October 2014
Tricorn Group Plc
("Tricorn" or the "Group")
Trading Update
Tricorn Group plc (AIM: TCN.L), the AIM listed tube manipulation specialist, provides the following trading update for the six months ended 30 September 2014.
First half revenue for the Group's continuing operations is expected to be around 8% higher than in the six months ended 31 March 2014 (the "previous period") and approximately 6% lower than in the corresponding period last year. The UK businesses are benefitting from some recovery in their markets; China revenue continues to grow; and revenue in the USA is stabilising, albeit at a lower level than that seen in the first half of last year.
Despite some business wins, trading in the Aerospace Division remained at below break-even levels and the Board concluded that it was in the best interests of shareholders and employees to dispose of the business. This was completed as planned on August 11 2014 for a cash consideration of £1.1m and allows the Group to focus on its businesses in the Energy and Transportation sectors where it has both scale and reach.
In the Energy Division, the business is benefiting from the restructuring implemented last year and is now delivering an improved operational performance. This has enabled it to respond well to some increases in demand where its customers have won additional business on short lead times. Revenue is expected to be higher than in both the previous period and the corresponding period last year.
In the Transportation Division, the UK business has seen similar growth, driven by a combination of new business wins and higher demand. Using some of the capabilities developed in the USA operation, its product offering has been extended and should provide a platform for further mid-term growth. Revenue in the USA is expected to be broadly in line with the previous period, although this is notably lower than the corresponding period last year. Operationally, performance has not been at targeted levels and has necessitated some changes within the local management team. Performance is expected to improve in the second half of the year. In China, our wholly owned manufacturing facility continues to see revenue growth but, with some delays in new product introductions, this has been slower than planned. The joint venture is integrating well into the Group.
The Group is expecting LBT* for the six month period to 30 September 2014 to be substantially improved over the previous period but, as a result of performance in the USA, will be slightly behind management expectations.
Tricorn will provide a further update on current trading and prospects at the time of the release of its unaudited interim results for the six months ended 30 September 2014, which is expected to be on 2 December 2014.
*All references to LBT are before restructuring costs, intangible asset amortisation, share based charges, foreign exchange derivative valuation.
For further information please contact:
Tricorn Group plc | Tel +44 (0)1684 569956 |
Mike Welburn, Chief Executive | www.tricorn.uk.com |
Phil Lee, Group Finance Director | |
Westhouse Securities Limited | Tel + 44 (0)20 7601 6100 |
Tom Griffiths Henry Willcocks - Corporate Broking | |
Winningtons | Tel + 44 (0)797 122 1972 |
Tom Cooper / Paul Vann | tom.cooper@winningtons.co.uk |
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 around 350 employees, has 5 manufacturing facilities in China, USA and UK. It operates through three brands: Malvern Tubular Products, Maxpower Automotive and Franklin Tubular Products.