Tricorn Group PLC – Half-year Report

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.”

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