TCN.L Regulatory News (TCN)

16 April 2014

Tricorn Group Plc 

("Tricorn" or the "Group")

Trading Statement

Tricorn Group plc (AIM: TCN.L), the AIM listed tube manipulation specialist, is providing the following pre close trading update for the financial year to 31 March 2014.

The year has proved challenging with demand lower through the second half of the year when compared to the first half. This has impacted the UK businesses in particular. Nevertheless, the Group has made significant progress in laying the foundations for long term growth and has made further encouraging progress in strengthening relationships with its customers.

Since the trading statement released on 11 February 2014 demand has generally stabilised and in some instances is starting to show signs of a slight improvement. As a result, second half revenues are expected to be marginally up on this earlier guidance.

Restructuring within the Energy division was completed as planned and with demand now steadied the business is far better positioned going forward.

Within the Transportation division, the UK business is starting to see some benefit from new business that has been secured and is well advanced with further prospects.

In China, both the wholly owned facility and joint venture are developing well, with revenue increasing from a broadening customer base and expanded product offering. The Chinese operations exited the year making a positive contribution to Group earnings and look set to make further progress through the coming year.

In the USA, new customer revenues continued to grow, offsetting some of the impact of business lost from resourcing decisions made by existing customers at the time the business went into receivership and prior to the acquisition by Tricorn.

The Aerospace division has seen a slight drop in revenues in the second half but set against a lower cost base. New business and further opportunities continue to be developed.

Overall cash inflow in the second half has been positive and is expected to result in a reduction in net debt from the half year position. Adjusted LBT* is expected to be broadly in line with earlier guidance

Further details on this and current trading will be given with our full year preliminary results which are scheduled to be released on 10 June 2014. 

*All references to LBT are before restructuring costs, intangible asset amortisation, share based charges, foreign exchange derivative valuation and China start up costs.

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Notes to Editors:

Tricorn is a value added manufacturer and specialist manipulator of pipe and tubing assemblies to niche markets worldwide in the Energy, Transportation and Aerospace sectors.

Headquartered in Malvern, UK, Tricorn employs around 400 employees, has 6 manufacturing facilities in China, USA and UK. It operates through five brands: MTC, Maxpower, RMDG Aerospace and Franklin Tubular Products.