9 Apr 2013 07:00
9 April 2013
Tricorn Group Plc
("Tricorn" or the "Group")
Pre-Close Trading Update
Tricorn Group plc (AIM: TCN.L), the AIM quoted tube manipulation specialist, today announces its pre-close trading update for the financial year to 31 March 2013.
The Group has made significant progress in the year in developing its capability as a global tube solutions provider. This has included the establishment of a new wholly owned manufacturing facility in China and the acquisition of a tubular products manufacturing business in the USA; both developments being funded entirely from the Group's own cash resources. These strategic advances create a very high quality global sourcing, manufacturing and supply business capable of considerable growth in its niche markets worldwide.
The first product shipments have already been made from the Chinese facility less than 12 months from when the Group announced its intention to expand in the region. With nominations for supply now being received from a wider customer base, the Board is very optimistic regarding future business development in this key market.
On 4 March 2013, the Group acquired the trade and certain assets of the former Whitley Products Inc for a total cash consideration of $2.99m (£1.95m). A new company was formed, Franklin Tubular Products Inc, comprising the facility in North Carolina and certain plant and equipment from the Indiana facility. The transfer of equipment has proceeded as planned and the business has already started to supply key customers with product that had previously been made in the Indiana facility. A highly capable local management team is in place, a USA Vice President of Sales has been appointed and the Board is encouraged with the opportunities for growth in the market.
Full year PBT*, excluding China start up costs and the US acquisition costs, will be at similar levels to the previous year and in line with earlier guidance.
In the Aerospace Division revenue will be ahead of the previous year. The business has a healthy pipeline of new business opportunities and has already been successful on a number of new packages of work. The Division is awaiting feedback on a number of other quotations.
Given the continued strong performance of the Group, the Board will be recommending the payment of a final dividend increased on 2012 as part of its progressive dividend policy. Further details on this and current trading will be given with our full year preliminary results which are scheduled to be released on 4 June 2013.
*All references to operating profit, operating profit margin, profit before tax and EPS are before intangible asset amortisation, restructuring costs and share based payment charges.
Enquires:
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 - Corporate Finance Henry Willcocks - Corporate Broking | |
Winningtons Tom Cooper/Paul Vann | Tel +44 (0)20 3176 4722 Mob + 44 (0)797 122 1972 Email - 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 & Utilities, Transportation and Aerospace sectors.
Headquartered in Malvern, UK, Tricorn employs around 400 employees and has 5 manufacturing facilities; in China, USA and UK. It operates through five brands: MTC; Redman Fittings; Maxpower; RMDG Aerospace; and Franklin Tubular Products.