TCN.L Regulatory News (TCN)

4 October 2013

Tricorn Group Plc 

("Tricorn" or the "Group")

Pre Close Trading Update

Tricorn Group plc (AIM:TCN.L), the AIM listed tube manipulation specialist, announces the following trading update for the six months ended 30 September 2013 ahead of entering its close period.

First half revenues for the Group are expected to be around 15 per cent higher than the corresponding period last year. Revenue from the USA acquisition and modest but increasing revenues from the China facility have more than offset what have remained generally softer markets for the UK businesses and, the anticipated lower revenue from the aerospace sector.

Good progress has been made in establishing a stable platform in the USA from which to grow. It is encouraging to report that business from new customers with an annualised value of around $4m at full production volumes has already been secured. As expected there has been some reduction in existing business as customers follow through, at least in part, on commitments made to alternative suppliers at the time the business was in receivership. However some of this business is already starting to return as customers see the investment being made in the North Carolina facility.

Revenues in China continue to grow as both the number of products being supplied is expanded and the customer base broadened. Investment in resources has been slightly ahead of plan in response to customer's requirement to localise capability further and to accelerate ISO 9001 approval. The joint venture announced in July became operational towards the end of the period and the first sales into China from this facility have been made.

In the UK, revenues have remained relatively soft in both the Energy and Transportation Divisions and at similar levels to the second half of the last financial year. Whilst there are some indications of improving markets, this is later than anticipated and now likely to be towards the end of the current financial year. In Aerospace, we completed the restructuring of the business in line with lower near term demand. New business is starting to be secured and it is anticipated manning levels will increase through the second half in response to this.

Given prevailing conditions for the UK businesses and our investment in both the USA and China, PBT for the half year is expected to be slightly below management's expectations for the 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 2013, which is expected to be on 3 December 2013.

*All references to PBT are before intangible asset amortisation, share based charges, fair value adjustments and restructuring 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 & Utilities, Transportation and Aerospace sectors.

Headquartered in Malvern, UK, Tricorn employs around 430 employees, has 6 manufacturing facilities in China, USA and UK. It operates through five brands: MTC; Redman Fittings; Maxpower, RMDG Aerospace and Franklin Tubular Products.