Tricorn Group PLC – Half-year Report

Tricorn Group plc (AIM: TCN.L), the AIM listed tube manipulation specialist, announces its unaudited interim results for the six months ended 30 September 2019 (the ‘Period’).

 

Key points

·    US expansion announced and operational ahead of plan

·    Short term impact on US margins from additional US import tariffs

·    Dividend declared from China JV and received post-Period end

·    First half revenue reflects slowing UK demand

·    Strong pipeline of new opportunities

 

Financial Summary

	Unaudited	Unaudited
	six months to	six months to	Year ended
	30 September	30 September	31 March
	2019	2018	2019
		Restated***	Restated***
	£’000	£’000	£’000
Revenue	10,581	11,415	22,763
EBITDA*	944	1,130	2,250
Profit before tax*	280	530	1,041
Cashflow generated by operations	512	506	1,566
Cash & cash equivalents	426	643	493
Net Borrowing **	(3,469)	(3,093)	(3,112)
Earnings per share – basic*	0.77p	1.45p	2.89p
Dividend	–	–	0.2p

*All references to EBITDA, operating profit, profit before tax and EPS are before intangible asset amortisation, share based payment charges and foreign exchange derivative valuation

** Net Borrowing excludes the impact of finance lease liabilities and operating lease liabilities as defined by IFRS 16

*** To provide comparison, prior year profit, EPS and cashflow generated by operations have been restated for the impact of IFRS 16 Leases

 

Andrew Moss, Chairman of Tricorn, commented:

 

“Whilst demand in the USA remained broadly in line with expectations, demand in the UK slowed significantly through the second quarter resulting in revenue for the Group being down on the comparable period.  In line with the trading update released on 9 October 2019, profitability in the Period was adversely impacted by lower revenues and in the USA short-term pressure on margins due to the impact of increased import tariffs on goods sourced from China.

Our Chinese joint venture performed in line with the Board’s expectations and I am pleased to report that it declared a maiden dividend with the Group’s share, (£0.171m; 2018: £Nil), being received shortly after the end of the Period.

We are very pleased with the performance of the new paint plant in the USA that we announced in May. It was operational ahead of time and is generating a number of new opportunities. Furthermore our pipeline of new business opportunities across the Group remains healthy.

For the balance of the financial year we expect demand to remain low in the UK and to weaken in the USA. We continue to focus on managing our cost base and working capital to align with these lower volumes whilst capitalising on the many new business opportunities referred to above.”