TCN.L Regulatory News (TCN)

6 Jun 2006 09:12

Tricorn Group PLC06 June 2006 Tricorn Group plc Preliminary Results 2005/6 Tricorn Group plc today announced its results for the year ended 31 March 2006. 2006 2005 Change £'000 £'000 % Sales 6,202 6,075 +2.1 Operating Profit* 654 279 +134.4 Operating Cash flow 935 315 +196.8 Adjusted earnings per share** 2.06p 0.33p +524.2 * before goodwill amortisation ** basic earnings per share before 2005 exceptional item The year ended 31st March 2006 has seen encouraging results for theTricorn Group with operating profit exceeding 10% of sales for the firsttime and operating cash flow reaching 146% of operating profit. Adjustedbasic earnings per share were 2.06p. (2005: 0.33p) The core business Malvern Tubular Components (MTC, our tubemanipulation specialist) grew by 6% primarily through market share gains.This progress was assisted by the MTC factory achieving record levels ofquality and delivery reliability to our customers during the year as part of ourfocus on improving customer value. Productivity in the MTC factory improved by a further 15% during the year andwe continued to extend our component purchases in lower cost countries asanother arm of our drive to continually reduce our cost base. Redman Fittings (Redman) moved into profit for the first time in the last sixmonths of the year as improved product designs and operational processestook effect. This was despite a small drop in sales as the water industryactivity dropped sharply following the regulatory review. Activity is nowreturning to normal levels and Redman is expected to make a usefulcontribution to Group profits going forward. ISS our small design consultancy for the water industry successfullycompleted its design project for a Pipe Line Inspection Vehicle and returned aprofit for the year. We have now decided to combine ISS and Redman as onewater industry focussed company employing the design expertise of ISS tosupport the fittings program and withdrawing from external designconsultancy. We have today announced the acquisition of Tecalemit Aerospace for thecash consideration of £1.6m. Tecalemit is a tube manipulating companysimilar to MTC but specialising in the Aerospace industry as opposed toMTC's focus on the Power Generation sector. In 2005 Tecalemit had sales of£4.6m and profit before tax of £4k. The lessons and techniques used to drive forward the MTC performance willnow be used to develop the Tecalemit business and this together with thevery strong outlook for growth in the Aerospace sector make Tecalemit a veryattractive add-on to the Tricorn Group. The outlook for 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 will continue to look for acquisition opportunities where the TricornManagement expertise can add significant value. CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNTFor the year ended 31 March 2006 2006 2005 Note Total Total £'000 £'000 Turnover 6,202 6,075 Cost of sales (3,220) (3,386) Gross profit 2,982 2,689 Distribution costs (261) (215) Administrative expenses before goodwill amortisation (2,067) (2,195) Goodwill amortisation (15) (15) Total administrative expenses (2,082) (2,210) Operating profit before goodwill amortisation 654 279 Goodwill amortisation (15) (15) Operating profit 639 264 Loss on disposal of discontinued operation - (432) Interest receivable 23 11 Interest payable and similar charges (61) (99) Profit/(loss) on ordinary activities before taxation 601 (256) Tax on profit/(loss) on ordinary activities 2 37 (73) Retained profit/(loss) on ordinary activities 4 638 (329)after taxation Earnings/(loss) per ordinary share - basic 3 2.06p (1.06p) - diluted 2.05p Earnings per ordinary share prior to loss on disposalof discontinued operation - basic 3 2.06p 0.33p - diluted 2.05p There were no recognised gains or losses other than the loss for the financialyear. CONSOLIDATED SUMMARISED BALANCE SHEET AT 31 MARCH 2006 Note 2006 2005 £'000 £'000Fixed assets Intangible assets 60 75 Tangible assets 544 685 604 760 Current assets Stocks 578 721 Debtors 1,464 1,553 Cash in bank and in hand 998 261 3,040 2,535 Creditors: Amounts falling due within one year (1,384) (1,647) Net current assets 1,656 888 Total assets less current liabilities 2,260 1,648 Creditors: Amounts falling due after more than one year (75) (86) Provisions for liabilities and charges (55) (73) 2,130 1,489 Capital and reservesCalled up share capital 3,102 3,100 Share premium account 1,371 1,371 Merger reserve 1,388 1,388 Profit and loss account (3,731) (4,370) Equity shareholders' funds 4 2,130 1,489 CONSOLIDATED SUMMARISED CASH FLOW STATEMENTFor the year ended 31 March 2006 Note 2006 2005 £'000 £'000 Net cash inflow from operating activities 5 935 315 Returns on investments and servicing of finance Interest received 23 11 Interest paid (46) (82) Finance lease and hire purchase interest paid (15) (17) Net cash outflow from returns on investments andservicing of finance (38) (88) Taxation 41 76 Capital expenditure and financial investment Payments to acquire tangible fixed assets (30) (80) Receipts from sale of tangible fixed assets 11 11 Net cash outflow from capital expenditure and financial investment (19) (69) Acquisitions and disposals Sale of business - 86 Net cash inflow before financing 919 320 Management of liquid resources Funds deposited on treasury reserve (915) - Financing Issue of ordinary share capital 2 - Repayment of loans - (240) Capital element of finance lease rentals (69) (79) Net cash outflow from financing (67) (319) (Decrease)/increase in cash 6 (63) 1 NOTES TO THE PRELIMINARY ANNOUNCEMENT For the year ended 31 March 2006 1. Basis of Preparation The preliminary announcement has 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 are set out in the Group's 2006 annualreport and financial statements. 2. Taxation (credit)/charge on profit/(loss) on ordinary activities 2006 2005 £'000 £'000 Current corporation tax 22 -Adjustment in respect of prior year - research and development tax credit (41) -Total current tax (19) -Deferred taxation (18) 73 (37) 73 Unrealised tax losses of approximately £596,000 (2005: £1,020,000)remain available to offset against future taxable trading profits. 3. Earnings/(loss) per share The calculation of the basic earnings/(loss) per share is based on theprofit/(loss) on ordinary activities after tax and on the weighted averagenumber of ordinary shares in issue during the year. The adjusted earnings pershare is calculated excluding the impact of the loss on disposal of discontinuedoperations. The profits/(losses) and weighted average number of shares used in the calculations are set out below: 2006 2005 Profit Weighted Earnings Loss Weighted Loss per average per share average share number of pence number of pence shares shares £'000 £'000 Basic earnings/(loss) per share 638 31,000,641 2.06 (329) 31,000,000 (1.06) Loss on disposal ofdiscontinued operations 431 1.39 Adjusted earningsper share 638 31,000,641 2.06 102 31,000,000 0.33 The share options in issue are dilutive in 2006 and anti-dilutive in 2005. The diluted earnings per share is calculated as follows: 2006 Profit Weighted Earnings average per share number of pence shares £'000 Basic earnings per share 638 31,000,641 2.06 Dilutive shares 187,053 Diluted earnings per share 638 31,187,694 2.05 4. Reconciliation of movements in shareholders' funds 2006 2005 £'000 £'000 Profit/(loss) for the year 639 (329)Issue of shares 2 - Net increase/(reduction) in shareholders' funds 641 (329) Shareholders' funds at 31 March 2005 1,489 1,818 Shareholders' funds at 31 March 2006 2,130 1,489 5. Reconciliation of operating profit to net cash inflow from operating activities 2006 2005 £'000 £'000 Operating profit 639 264 Depreciation 194 163 Amortisation 15 15 Loss on sale of tangible fixed assets 2 3Decrease/(increase) in stocks 143 (50)Decrease/(increase) in debtors 89 (310)(Decrease)/increase in creditors (147) 230Net cash inflow from operating activities 935 315 6. Reconciliation of net cash flow to movement in net debt 2006 2005 £'000 £'000 (Decrease)/increase in cash (63) 1Cash used to repay capital element of finance lease andhire purchase agreements 69 79Cash outflow from movement in loans - 240 Increase in liquid funds 915 - 921 320New finance leases and hire purchase contracts (35) (114)Movement in net debt 886 206Net debt at 1 April 2005 (376) (582)Net funds/(debt) at 31 March 2006 510 (376) 7. Publication of Non-statutory Accounts The financial information set out in this preliminary announcement does notconstitute statutory accounts as defined in section 240 of the Companies Act1985. The summarised balance sheet at 31 March 2006, and the summarised profit andloss account, summarised cash flow statement and associated notes for the yearthen ended have been extracted from the Group's statutory financial statementsupon which the auditors opinion is unqualified and does not include anystatement under Section 237 of the Companies Act 1985. Contact: Steven Cooper+44 (0) 1684 569956 This information is provided by RNS The company news service from the London Stock Exchange