TCN.L Regulatory News (TCN)

7 October 2015

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 2015. 

First half revenue for the Group's continuing operations is expected to be around 5% lower than in the six months ended 30 September 2014 (the "corresponding period") with increased revenue in the USA and China helping to offset lower demand being experienced predominantly in the UK Transportation business. The Group expects adjusted PBT* for the six months ended 30 September 2015 to be substantially ahead of the corresponding period and at least in line with the six months ended 31 March 2015 (the "previous period").  

In the first half, in the Transportation Division, the USA business, Franklin Tubular Products, increased revenue through new business growth and, under strong local leadership, has delivered substantial improvements in operational performance. The business is now making a significant contribution to Group profits. In the UK, Maxpower Automotive experienced further reductions in demand from its key customers as a result of softer end markets. However, the new production line to support the circa £10m contract announced in December 2014 is now operational and provides a substantial opportunity to offset this. Both the wholly owned and joint venture businesses in China have seen revenue increase over the corresponding period but at a slower rate when compared to the previous period. Steps have been taken to lower operational costs in China. 

In the six months ended 30 September 2015, in the Energy Division, Malvern Tubular Components delivered further improvements in productivity partially offsetting the impact of revenue which was around 3% lower than in the corresponding period.  

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 2015, which is expected to be on 2 December 2015.  

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

For further information please contact:

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 and has 5 manufacturing facilities in China, USA and UK. It operates through three brands: Franklin Tubular Products, Malvern Tubular Components and Maxpower Automotive.