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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Tricorn Group Plc | LSE:TCN | London | Ordinary Share | GB0009716340 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 4.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMTCN
RNS Number : 4849Y
Tricorn Group PLC
06 December 2017
6 December 2017
Tricorn Group plc
("Tricorn" or the "Group")
Interim Results
For the six months ended 30 September 2017
Tricorn Group plc (AIM: TCN.L) the AIM listed tube manipulation specialist, announces its unaudited interim results for the six months ended 30 September 2017.
Highlights
-- Revenue up 28.4% compared to the six months ended 30 September 2016 -- Substantial increase in profitability -- Market conditions improved over prior period -- Global footprint creating new business opportunities -- Long term agreement secured with London Electric Vehicle Company -- Anticipate that full year results will be in line with market expectations
Financial Summary
Hot Features
Premium
Unaudited Unaudited
six months to six months to Year ended
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
Revenue 11,427 8,900 18,519
EBITDA* 744 456 961
Profit before tax* 370 4 230
Cashflow from operating activities 186 202 614
Cash & cash equivalents 887 643 642
Net (Debt) (3,470) (3,386) (3,497)
Earnings per share - basic* 1.00p 0.01p 0.72p
- -
-------------- -----------
*All references to EBITDA, operating profit, profit before tax and EPS are before restructuring costs, intangible asset amortisation, share based payment charges and foreign exchange derivative valuation.
Andrew Moss, Chairman of Tricorn, commented:
"The Group has made significant progress through the reporting period with all businesses benefitting from improved end markets and the impact of new business wins.
The Group's strategy to build a business capable of supporting a global customer base across the UK, USA and China has created significant opportunities to expand our existing relationships and to develop business with new customers.
Our focus on securing long term agreements with blue chip OEMs is proving successful and over the past three years we have announced long term agreements with four major customers amounting to aggregate revenue in excess of GBP25m. We are further encouraged by the pipeline of new opportunities and, therefore, continue to invest in our worldwide manufacturing capabilities.
Underlying profit before tax for the six month period was substantially higher than in the previous full year and in line with the Board's expectations. We anticipate that the full year results will be in line with market expectations."
Enquires:
Tricorn Group plc Tel +44 (0)1684 569956 Mike Welburn, Chief Executive www.tricorn.uk.com Phil Lee, Group Finance corporate@tricorn.uk.com Director Stockdale Securities Limited Tel + 44 (0)20 7601 6100 Tom Griffiths/Henry Willcocks
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 300 employees and operates through four brands: MTC, Maxpower, Franklin Tubular Products and Minguang-Tricorn Tubular Products.
Chairman's and Chief Executive's statement
Performance in the six months ended 30 September 2017
With improved market conditions and the businesses benefitting from the impact of new business wins revenue at GBP11.427m was up 28.4% when compared to the six months ended 30 September 2016 (the "Corresponding Period") (2016: GBP8.900m).
Both of the Group's divisions made good progress and our joint venture in China is now contributing positively to overall profitability.
Underlying profit before tax at GBP0.370m was in line with the Board's expectations and substantially ahead of the Corresponding Period (2016: GBP0.004m).
Operational Review
The Group operates two main business divisions focused on the Transportation and Energy sectors and has four manufacturing facilities in the UK, USA and China. These locations make it ideally positioned to support its blue chip OEM customer base, many of whom are seeking to localise supply and technical support for their facilities in these key regions.
Transportation
The Transportation division is focused on rigid, nylon and hybrid tubular products for engines, hydraulic actuation, transmission lubrication and fuel sender sub-systems. Its customer base serves both the on and off road markets, including construction, truck and agriculture.
The USA business, Franklin Tubular Products, has built excellent relationships with its customers based on its strong operational performance, responsiveness and the investment made in innovative capabilities. Revenue and profits in the six months ended 30 September 2017 are up sharply, with further substantial opportunities for new business being progressed.
In the UK, Maxpower Automotive also increased revenue and profitability in the first half compared to the Corresponding Period. There has been further expansion of rotary welding capabilities to support the increasing demand for rigid hydraulic tube assemblies which now represent a significant proportion of overall revenue. Towards the end of the period the business was successful in securing a long term agreement with the London Electric Vehicle Company for the supply of brake pipe assemblies on the recently launched TX eCity electric taxi which is expected to generate around GBP5m of revenue over the length of the contract.
Overall externally reported segmental revenue was GBP8.097m, up 18.3% compared to the same period last year (2016: GBP6.844m). Segmental underlying profit before tax was GBP0.156m (2016: GBP0.061m).
Energy
The Energy division specialises in the design and manufacture of larger tubular assemblies and fabrications for engine, cooling and generator set applications. Its customer base serves the power generation, oil and gas, mining and marine applications markets.
Revenue during the period at GBP3.330m was significantly ahead of the Corresponding Period (2016: GBP2.056m) with the business benefitting from the impact of new business particularly within the power generation sector. Segmental profit before tax at GBP0.278m was GBP0.260m ahead of the Corresponding Period (2016: GBP0.018m).
Joint Venture
Our Chinese joint venture, Minguang-Tricorn Tubular Products performed well, benefiting from the consolidation of our activities in China in the previous year as well as improved market conditions. The Group's share of profit before tax at GBP0.099m was substantially improved (2016: Loss GBP0.076m).
Financial Review
Over the past couple of years the Group has undertaken activities to restructure its businesses. The most significant of these was to consolidate its China facilities, which was completed in June 2016. Coupled with cost reductions across its other subsidiaries, the Group completed its restructuring programme towards the end of the last financial year and began to benefit from those activities through its final quarter.
Through the first half of the current financial year, the Group has built on the progress that it made in the previous year. It has seen improvements in market demand across all of its business segments. In addition, it has continued to develop and introduce contracts with new and existing customers.
As a result, the Group saw revenue increase over the Corresponding Period to GBP11.427m, with underlying profit before tax increasing substantially to GBP0.370m (2016: GBP0.004m).
Income Statement
Revenue for the first half of the financial year at GBP11.427m was up 28.4% on the Corresponding Period (2016: GBP8.900m). The impact of movements on the USD added GBP0.208m to the revenue in the first half. However, this is offset by GBP0.400m relating to activities in China which were reported in the Corresponding Period. As previously indicated, revenue from the Group's China joint venture is not reported in the Group statement of comprehensive income.
The Group's administration and distribution costs increased as a result of incurring a level of product introduction expense on new business, but compared to the Corresponding Period delivered more than a doubling of its operating profit to GBP0.388m (2016: GBP0.187m).
Following the merger of its China activities, the joint venture delivered a profit in the first half of the financial year, of which the Group's reported share was GBP0.099m (2016: loss GBP0.076m). After finance charges the Group made an underlying profit before tax of GBP0.370m (2016: GBP0.004m).
After intangible asset amortisation and share based payment charges, headline profit before tax was GBP0.256m (2016: loss before tax GBP0.249m).
The underlying earnings per share was 1.00p (2016: 0.01p) and after deducting non-underlying items the basic earnings per share was 0.66p (2016: loss per share 0.74p).
Cash Flow
The Group's net cash flow from operating activities for the first half was GBP0.186m (2016: GBP0.202m). With demand increasing through the first half of the financial year, the Group saw an increase in net working capital to support that growth, which impacted operating cashflows.
The Group's investment in capital expenditure in the first half was GBP0.281m (2016: GBP0.307m). The majority of this expenditure was associated with new business and facility improvements in the UK and US. Funding of capital expenditure projects is through a combination of short term borrowings and lease finance arrangements.
Net debt at the half year end was GBP3.470m compared to GBP3.386m at 30 September 2016 and GBP3.497m at 31 March 2017. With net debt only marginally down on the position at 31 March 2017, gearing was largely unchanged at 57.5% (Sept 2016: 57.4%).
Balance Sheet
Total assets at 30 September 2017 were GBP14.202m, up GBP1.664m on 30 September 2016. The increase related mainly to increases in trade receivables, inventories and cash and equivalents reflecting the increased demand and trading activity though the first half of the year.
Net working capital at 30 September 2017 was GBP4.052m, which was GBP0.218m higher than at 30 September 2016 and GBP0.162m higher than at 31 March 2017.
Outlook
The Group has made significant progress through the reporting period with all businesses benefitting from improved end markets and the impact of new business wins.
The Group's strategy to build a business capable of supporting a global customer base across the UK, USA and China has created significant opportunities to expand our existing relationships and to develop business with new customers.
Our focus on securing long term agreements with blue chip OEMs is proving successful and over the past three years we have announced long term agreements with four major customers amounting to aggregate revenue in excess of GBP25m. We are further encouraged by the pipeline of new opportunities and, therefore, continue to invest in our worldwide manufacturing capabilities.
Underlying profit before tax for the six month period was substantially higher than in the previous full year and in line with the Board's expectations. We anticipate that the full year results will be in line with market expectations.
Andrew Moss Mike Welburn
Chairman Chief Executive
Group statement of comprehensive income
For period ended 30 September 2017
Note Unaudited
Unaudited six months Unaudited Unaudited Audited
six months to 30 six months six months year ended
to 30 September September to 30 September to 30 September 31 March
2017 2017 2017 2016 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Underlying Non-Underlying Group
Revenue 3 11,427 - 11,427 8,900 18,519
Cost of sales (7,087) - (7,087) (5,169) (11,002)
---------------- -------------- ---------------- ---------------- -----------
Gross profit 4,340 - 4,340 3,731 7,517
Distribution
costs (520) - (520) (394) (793)
Administration
costs
- General
administration
costs (3,432) - (3,432) (3,150) (6,227)
- Restructuring
costs - - - (198) (303)
- Intangible
asset amortisation - (108) (108) (95) (190)
- Share based
payment charge - (6) (6) (4) (24)
- Fair value
change relating
to forward
exchange
contracts - - - 44 -
---------------------- ---- ---------------- -------------- ---------------- ---------------- -----------
Total administration
costs (3,432) (114) (3,546) (3,403) (6,744)
Operating
profit/(loss) 388 (114) 274 (66) (20)
---------------- -------------- ---------------- ---------------- -----------
Share of
profit/(loss)
from joint
venture 99 - 99 (76) (49)
Finance costs (117) - (117) (107) (218)
Profit/(loss)
before tax 3 370 (114) 256 (249) (287)
Income tax
expense (33) - (33) - 12
Profit/(Loss)
for the year
and total
comprehensive
income/(expense) 337 (114) 223 (249) (275)
================ ============== ================ ================ ===========
Attributable
to:
Equity holders
of the parent
company 337 (114) 223 (249) (275)
================ ============== ================ ================ ===========
Continuing
Operations
Earnings
per share:
Basic loss
per share 4 0.66p (0.74)p (0.81)p
Diluted loss
per share 4 0.61p (0.74)p (0.81)p
Group statement of changes in equity
For period ended 30 September 2017
Share
based
Share Share Merger Translation payment Retained
capital premium reserve Reserve Reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April
2016 3,379 1,692 1,388 107 300 (847) 6,019
(audited)
Share based payment
charge - - - - 4 - 4
--------------------------------- ------------------------------------- ------------------------------------ --------------------------------------- ------------------------------------- ------------------------------------------ ------------------------------
Total transactions
with owners - - - - 4 - 4
Foreign exchange
loss on translation
of Reserves - - - 116 - - 116
Total comprehensive
expense - - - - - (249) (249)
--------------------------------- ------------------------------------- ------------------------------------ ------------------------------------------- ------------------------------------- ----------------------------------------- ------------------------------
Balance at 30 September
2016 3,379 1,692 1,388 223 304 (1,096) 5,890
(unaudited)
Share based payment
charge - - - - 20 - 20
Write back of share
based reserve - - - - (15) 15 -
--------------------------------- ------------------------------------- ------------------------------------ ------------------------------------------- ------------------------------------ ------------------------------------------ ------------------------------
Total transactions
with owners - - - - 5 15 20
Foreign exchange
gain on translation
of Reserves - - - 153 - - 153
Total comprehensive
expense - - - - - (26) (26)
--------------------------------- ------------------------------------- ------------------------------------ ------------------------------------------- ------------------------------------- ----------------------------------------- ------------------------------
Balance at 31 March
2017 3,379 1,692 1,388 376 309 (1,107) 6,037
(audited)
Share based payment
charge - - - - 6 - 6
--------------------------------- ------------------------------------- ------------------------------------ ------------------------------------------- ------------------------------------- ------------------------------------------ ------------------------------
Total transactions
with owners - - - - 6 - 6
Foreign exchange
loss on translation
of Reserves - - - (232) - - (232)
Total comprehensive
income - - - - - 223 223
--------------------------------- ------------------------------------- ------------------------------------ ------------------------------------------ ------------------------------------- ----------------------------------------- ------------------------------
Balance at 30 September
2017 3,379 1,692 1,388 144 315 (884) 6,034
(unaudited)
========================= ========================= =========================== ========================= ============================ ========================= =====================
Group statement of financial position
At 30 September 2017
Unaudited Unaudited Audited
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
Assets
Non current
Goodwill 391 391 391
Intangible assets 279 407 385
Investment in Joint Venture 782 660 684
Property, plant and equipment 4,149 4,113 4,300
------------ ------------ ---------
5,601 5,571 5,760
Current
Inventories 2,630 2,467 2,662
Trade and other receivables 5,052 3,825 4,692
Cash and cash equivalents 887 643 642
Corporation tax 32 32 32
------------ ------------ ---------
8,601 6,967 8,028
Total assets 14,202 12,538 13,788
============ ============ =========
Liabilities
Current
Trade and other payables (3,630) (2,458) (3,464)
Borrowings (4,234) (3,924) (4,013)
Corporation tax (65) (26) (32)
(7,929) (6,408) (7,509)
Non-current
Borrowings (123) (105) (126)
Deferred tax (116) (135) (116)
------------ ------------ ---------
(239) (240) (242)
Total liabilities (8,168) (6,648) (7,751)
Net assets 6,034 5,890 6,037
============ ============ =========
Equity
Share capital 3,379 3,379 3,379
Share premium account 1,692 1,692 1,692
Merger reserve 1,388 1,388 1,388
Translation reserve 144 223 376
Share based payment reserve 315 304 309
Retained earnings (884) (1,096) (1,107)
Total equity 6,034 5,890 6,037
============ ============ =========
Group statement of cash flows
For period ended 30 September 2017
Unaudited Unaudited Audited
six months six months year ended
to to
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit/(Loss) after taxation 256 (249) (275)
Adjustment for:
Depreciation 257 345 513
Net finance costs in statement
of comprehensive income 117 107 218
Restructuring charges - 114 114
Amortisation charge 108 95 190
Share based payment charge 6 4 24
Share of joint venture operating
(profit)/loss (99) 76 49
Credit relating to foreign exchange
derivative contracts - (44) -
Taxation expense recognised
in statement of comprehensive
income - - (12)
Increase in trade and other
receivables (453) (274) (984)
Increase in trade payables and
other payables 193 52 1,003
(Increase)/Decrease in inventories (53) 66 (25)
------------ ------------ ----------
Cash generated 332 292 815
Interest paid (146) (132) (226)
Income taxes received - 42 25
Net cash generated by operating
activities 186 202 614
============ ============ ==========
Cash flows from investing activities
Proceeds of asset sold on disposal
of business - (103) (157)
Purchase of plant and equipment (281) (307) (559)
Purchase of intangible assets - - (75)
Net cash used by investing activities (281) (410) (791)
============ ============ ==========
Cash flows from financing activities
Movement in short term borrowings 399 41 41
Payment of finance lease liabilities (59) (45) (77)
------------ ------------ ----------
Net cash generated by/(absorbed
by) financing activities 340 (4) (36)
Net increase/(decrease) in cash
and cash equivalents 245 (212) (213)
Cash and cash equivalents at
beginning of period 642 855 855
------------ ------------ ----------
Cash and cash equivalents at
end of period 887 643 642
============ ============ ==========
1 General information
Tricorn Group plc and subsidiaries' (the 'Group') principal activities comprise high precision tube manipulation, systems engineering and specialist fittings.
The Group's customer base includes major blue chip companies with world-wide activities in key market sectors, including Power Generation, Oil & Gas, Off Highway, Commercial Vehicles, Agriculture and Automotive.
Tricorn Group plc is the Group's ultimate parent company. It is incorporated and domiciled in the United Kingdom. The address of Tricorn Group plc's registered office, which is also its principal place of business, is Spring Lane, Malvern, Worcestershire, WR14 1DA. The Group's shares are admitted to trading on the Alternative Investment Market of the London Stock Exchange.
These consolidated interim financial statements have been approved for issue on 6 December 2017 by the Board of Directors. Amendments to the financial statements are not permitted after they have been approved. Copies of this announcement are available on the Company's website, www.tricorn.uk.com.
The financial information set out in this interim report does not constitute statutory accounts as defined in the Companies Act 2006. The Group's statutory financial statements for the year ended 31 March 2017 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.
2 Accounting policies
Basis of preparation
These unaudited interim consolidated financial statements are for the six months ended 30 September 2017. They have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2017, which have been prepared in accordance with International Financial Reporting Standards.
The same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statements.
3 Segmental reporting
The Group operates two main business segments:
-- Energy: manipulated tubular assemblies for use in power generation, oil and gas and marine sectors.
-- Transportation: ferrous, non-ferrous and nylon material tubular assemblies for use in on and off-highway applications.
3 Segmental reporting (continued)
The financial information detailed below is frequently reviewed by the Chief Operating Decision maker.
6 months to 30 September 2017 (unaudited)
Energy Transportation Corporate Joint Venture Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 3,330 8,097 - 11,427
Segmental profit/(loss) before tax 278 156 (163) 99 370
Intangible asset amortisation (108)
Share based payment charge (6)
________
Profit before tax 256
Segmental total assets 3,142 10,296 764 - 14,202
6 months to 30 September 2016 (unaudited)
Energy Transportation Corporate Joint Venture Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2,056 6,844 - - 8,900
Segmental profit/(loss) before tax 18 61 1 (76) 4
Restructuring costs (198)
Intangible asset amortisation (95)
Fair value credit relating to foreign exchange
contracts 44
Share based payment charge (4)
_________
Loss before tax (249)
Segmental total assets 2,700 8,997 841 - 12,538
3 Segmental reporting (continued)
Year ended 31 March 2017
Energy Transportation Corporate Joint Venture Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 4,924 13,595 - - 18,519
Segmental profit/(loss) before tax 251 195 (167) (49) 230
Restructuring costs (303)
Intangibles amortisation (190)
Share based payment charge (24)
_________
Loss before tax (287)
Segmental total assets 3,332 10,051 405 - 13,788
4 Earnings/(Loss) per share
The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post tax effect of dividends and/or interest, on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.
Six months ended 30 September
2017
Weighted average
Profit number of Earnings
shares per share
GBP'000 Number '000 Pence
Basic loss per share 223 33,795 0.66p
-------- ---------------- -----------
Dilutive shares 2,815
Diluted loss per share 223 36,610 0.61P
-------- ---------------- -----------
Six months ended 30 September
2016
Weighted average
Loss number of Loss per
shares share
GBP'000 Number '000 Pence
Basic earnings per share (249) 33,795 (0.74)p
------- ---------------- ----------
Dilutive shares -
Diluted earnings per
share (249) 33,795 (0.74)p
------- ---------------- ----------
4 Earnings/(Loss) per share (continued)
31 March 2017
Weighted average
Loss number of Loss per
shares share
GBP'000 Number '000 Pence
Basic earnings per share (275) 33,795 (0.81)p
------- ---------------- ----------
Dilutive shares -
Diluted earnings per
share (275) 33,795 (0.81)p
------- ---------------- ----------
The directors consider that the following adjusted earnings per share calculation is a more appropriate reflection of the Group's performance.
Six months ended 30 September
2017
Profit Weighted Earnings
average number per share
of shares
GBP'000 Number '000 Pence
Basic earnings per
share 223 33,795 0.66p
-------- ---------------- -----------
Intangible asset amortisation 108
Share based payment
charge 6
Adjusted earnings per
share 337 33,795 1.00p
-------- ---------------- -----------
Dilutive shares - 2,815 -
Diluted adjusted earnings
per share 337 36,610 0.92p
-------- ---------------- -----------
Six months ended 30 September
2016
Weighted average
Profit number of Earnings
shares per share
GBP'000 Number '000 Pence
Basic loss per share (249) 33,795 (0.74)p
-------- ---------------- -----------
Restructuring costs 198
Intangible asset amortisation 95
Fair value credit relating
to foreign exchange
contracts (44)
Share based payment
charge 4
Adjusted earnings per
share 4 33,795 0.01p
-------- ---------------- -----------
Dilutive shares - - -
Diluted adjusted earnings
per share 4 33,795 0.01p
-------- ---------------- -----------
31 March 2017
Weighted average
Loss number of Earnings
shares per share
GBP'000 Number '000 Pence
Basic loss per share (275) 33,795 (0.81)p
------- ---------------- -----------
Restructuring costs 303
Intangible asset amortisation 190 -
Share based payment
charge 24
Adjusted earnings per
share 242 33,795 0.72p
------- ---------------- -----------
Dilutive shares - -
Diluted adjusted earnings
per share 242 33,795 0.72p
------- ---------------- -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UGGBUPUPMGRA
(END) Dow Jones Newswires
December 06, 2017 02:00 ET (07:00 GMT)
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