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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 : 3978Q
Tricorn Group PLC
06 June 2018
6 June 2018
Tricorn Group plc
Final Results
For the year ended 31 March 2018
Tricorn Group plc ('Tricorn' or the 'Group'), (TCN.L) the AIM quoted tube manipulation specialist, announces its audited final results for the year ended 31 March 2018.
Highlights
-- Revenue increased 19.8% to GBP22.180m -- Profits up 260% to GBP0.827m -- Excellent progress across both divisions and our Chinese joint venture -- Long term agreement secured with London Electric Vehicle Company -- Cash generated by operations of GBP1.532m, up GBP0.717m on previous year
Financial Summary
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2018 2017
GBP'000 GBP'000
Revenue 22,180 18,519
EBITDA* 1,575 961
Profit before tax* 827 230
Cash generated by operations 1,532 815
Cash and equivalents 692 642
Net debt (2,982) (3,497)
Earnings per share - basic* 2.65p 0.72p
* All references to EBITDA, profit before tax and earnings per share are before restructuring costs, intangible asset amortisation, share based payment charges and fair value charges relating to foreign exchange contracts.
Commenting on the results and the Group's prospects, Andrew Moss, Chairman of Tricorn, said:
"The Group has made excellent progress in the execution of its strategy which is delivering revenue growth and a substantial improvement in profitability. Our strong cash generation has enabled us to reduce our net debt whilst continuing to invest in the business. These investments in developing our capabilities and increasing our capacity have enabled us to win new business, grow market share and take full advantage of buoyant end markets. With momentum building across the businesses, the Board expects the Group to make further significant progress in the current year."
Enquiries:
Tricorn Group plc Tel +44 (0)1684 569956 Mike Welburn, Chief Executive www.tricorn.uk.com Phil Lee, Group Finance Director corporate@tricorn.uk.com 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 has four manufacturing facilities in the UK, USA and China. It operates through four brands: Malvern Tubular Components, Maxpower Automotive, Franklin Tubular Products and Minguang-Tricorn Tubular Products.
Chairman's and Chief Executive's statement
Performance in the year ended 31 March 2018
Revenue for the year at GBP22.180m was 19.8% higher than the previous year (2017: GBP18.519m) with the Group benefitting from buoyant end markets and new business wins. Excellent progress has been made across both of the Group's divisions with all businesses delivering increased revenue and substantial improvements in profitability over the previous year. The performances of the Group's USA business and its joint venture in China have been particularly encouraging.
Underlying profit before tax at GBP0.827m was significantly up from the previous year (2017: GBP0.230m).
Business Review
The Group operates two main business divisions focused on the transportation and energy sectors. From the Group's four manufacturing facilities, the businesses serve a global blue chip OEM customer base many of whom have major facilities in the UK, USA, and China as well as elsewhere in the world.
With manufacturing operations now firmly established in each of these key locations and performing well, the Group is ideally positioned to support its customers' facilities as they continue to seek to localise supply and technical support.
Transportation
The Transportation division is focused on rigid, nylon and hybrid tubular products for engines, braking systems, transmission lubrication, fuel sender sub-systems and hydraulic actuation in a variety of on and off road applications, including construction, trucks and agriculture.
External revenue for the year ended 31 March 2018 was GBP15.901m (2017: GBP13.595m) and underlying profit increased by 110% to GBP0.410m (2017: GBP0.195m).
In the USA, Franklin Tubular Products continued to make excellent progress on all fronts. Operational performance was strong and new product introduction activity was at record levels. In the final quarter alone, 65 part numbers were introduced representing around GBP1.4m of annualised revenue. In the year, we also made further investment in our cleaning capabilities and are now able to supply "super clean" parts. New business is being won as a result.
In the UK, Maxpower Automotive grew its rigid hydraulic tube business substantially and capacity was increased with the addition of further TIG welding stations. In the earlier part of the financial year, 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. The project entered the production phase towards the end of the financial year and is expected to generate around GBP5m of revenue for the Group over the length of the contract.
Energy
The Energy division is focused on the design and manufacture of larger tubular assemblies and fabrications for diesel engines and power generator sets. The key markets served through its customers are power generation, mining, marine and oil and gas applications.
External revenue for the year at GBP6.279m was well ahead of the previous year (2017: GBP4.924m), with the business benefitting from revenue in the power generation rental sector through the early part of the year. It was also successful in securing new business for cooling set support frames. Underlying profit at GBP0.567m was substantially up on the previous year (2017: GBP0.251m).
China
Our Chinese joint venture, Minguang-Tricorn Tubular Products, performed well, benefiting from the consolidation of our activities in China in the previous year and improved market conditions. Relationships with customers continued to build and the business was successful on a number of new project wins. The Group's share of profit before tax at GBP0.209m was substantially improved (2017: loss GBP0.049m).
Financial Review
The restructuring activities over the last couple of years, combined with the global investment in our capability, have transformed and strengthened the Group. The business in the USA continues to grow and the merging of our facilities in China has resulted in that part of the Group now being profitable.
With improved trading conditions, all of the Group's subsidiary businesses were profitable in the year. Financial results for the Group were much improved with underlying EBITDA for the year at GBP1.575m (2017: GBP0.961m) and underlying profit before tax at GBP0.827m (2017: GBP0.230m).
Income Statement
Revenue for the year, at GBP22.180m, increased by 19.8% over the previous year of GBP18.519m. This was driven by a combination of the impact of new business growth and the improved market demand from key customers. In line with Group policy when reporting the results for its joint venture in China, the Group has reported its share of the profit or loss before tax whilst the revenue figure for the joint venture is not reported in the Group consolidated income statement.
Gross margins were at 38.3%, after incurring a level of new business introduction costs. Distribution costs at GBP1.005m were up GBP0.212m over the prior year, with the increase largely volume related. The Group also saw Administration costs increase by 6.7% over the prior year to GBP6.646m. However, despite these cost increases, operational gearing reduced to 29.9% (2017: 33.6%).
The Group's Chinese joint venture, Minguang-Tricorn Tubular Products, delivered its first full year profit following its merger in July 2016. The Group's share of profit for the year was GBP0.209m (2017 loss: GBP0.049m).
EBITDA for the year was GBP1.575m (2017: 0.961m). Finance costs for the year were GBP0.226m (2017: GBP0.218m) and the Group delivered an underlying profit before tax for the year of GBP0.827m (2017: GBP0.230m).
After deducting intangible asset amortisation, share based payment charges and fair value charges relating to foreign exchange contracts, the profit before tax for the year was GBP0.606m (2017 loss: GBP0.287m).
Basic earnings per share (EPS) was 2.00p (2017 LPS: 0.81p) and after adjusting for one-off items, the underlying EPS was 2.65p (2017: 0.72p). The Board is not recommending the payment of a final dividend (2017: nil).
Cash Flow
The Group's cashflow from operations improved significantly in the year to GBP1.532m (2017: GBP0.815m), reflecting the profit performance and management of working capital. For the year the Group achieved a cash generated by operations to EBITDA ratio of 0.97:1 (2017: 0.85:1), only marginally short of its ongoing 1:1 target. After interest payments and net tax receipts, cash generated by operating activities was GBP1.321m (2017: GBP0.614m). Capital expenditure, net of finance leases, was GBP0.696m (2017: GBP0.559m).
During the year, the Group repaid borrowings in China of GBP0.439m, initially used to fund its joint venture. This repayment was funded from the Group's cash resources.
At 31 March 2018, net debt was GBP2.982m (2017: GBP3.497m), cash and cash equivalents were GBP0.692m (2017: GBP0.642m) and gearing was 47.6% (2017: 57.9%).
The Group uses short term borrowings to fund its operating activities, with selected capital additions and larger projects being financed by lease finance arrangements. At the year end, the Group did not have any term debt in place and had no covenants on its borrowings.
Balance Sheet
Total assets of the Group as at 31 March 2018 were GBP14.359m, which was GBP0.571m higher than the prior year, driven mainly by the increase in the value of the Group's investment in its joint venture in China and higher levels of debtors given the increased sales volume. Net working capital for the Group decreased in the year to GBP3.475m (2017: GBP3.890m).
On translation of its overseas assets and liabilities, the Group made an exchange loss of GBP0.487m (2017: gain GBP0.269m). This is a non-cash movement, which is not hedged and is treated as a movement in other comprehensive income. As a result, the translation reserve in shareholders' funds now shows a GBP0.111m deficit (2017: surplus GBP0.376m).
People
The Board would like to take the opportunity to thank its employees for their hard work and support throughout the year. Their commitment and dedication ensures that we continue to drive the business forward and deliver quality products to our customers.
Outlook
The Group has made excellent progress in the execution of its strategy which is delivering revenue growth and a substantial improvement in profitability. Our strong cash generation has enabled us to reduce our net debt whilst continuing to invest in the business. These investments in developing our capabilities and increasing our capacity have enabled us to win new business, grow market share and take full advantage of buoyant end markets. With momentum building across the businesses, the Board expects the Group to make further significant progress in the current year.
Andrew Moss Mike Welburn Chairman Chief Executive
Group income statement
For year ended 31 March 2018
All of the activities of the Group are classed as continuing.
Note
2018 2018 2018 2017 2017 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Underlying Non-underlying Group Underlying Non-underlying Group
Revenue 3 22,180 - 22,180 18,519 - 18,519
Cost of sales (13,685) - (13,685) (11,002) - (11,002)
---------- -------------- ---------- ------------ -------------- ---------
Gross profit 8,495 - 8,495 7,517 - 7,517
Distribution costs (1,005) - (1,005) (793) - (793)
Administration costs
- General administration
costs (6,646) - (6,646) (6,227) - (6,227)
- Restructuring
costs - - - - (303) (303)
- Intangible asset
amortisation - (175) (175) - (190) (190)
- Fair value charge
relating to forward
exchange contracts - (6) (6) - - -
- Share based payment
charge - (40) (40) - (24) (24)
Total administration
costs (6,646) (221) (6,867) (6,227) (517) (6,744)
---------- -------------- ---------- ------------ -------------- ---------
Operating profit/(loss) 3 844 (221) 623 497 (517) (20)
---------- -------------- ---------- ------------ -------------- ---------
Share of profit/
(loss) from joint
venture 209 - 209 (49) - (49)
Finance costs (226) - (226) (218) - (218)
---------- -------------- ---------- ------------ -------------- ---------
Profit/(loss) before
tax 3 827 (221) 606 230 (517) (287)
Income tax (charge)/credit 70 - 70 12 - 12
---------- -------------- ---------- ------------ -------------- ---------
Profit/(loss) after
tax from continuing
operations 897 (221) 676 242 (517) (275)
Attributable to:
Equity holders
of the parent company 897 (221) 676 242 (517) (275)
========== ============== ========== ============ ============== =========
Earnings per share:
Basic profit/(loss
per share) 4 2.00p (0.81)p
Diluted profit/(loss
per share) 4 1.86p (0.81)p
Group statement of comprehensive income
For year ended 31 March 2018
2018 2017
GBP'000 GBP'000
Profit/(loss) for the year 676 (275)
Other comprehensive income
Items that will subsequently be reclassified
to profit or loss
Foreign exchange translation differences (487) 269
Total comprehensive loss attributable to
equity holders of the parent 189 (6)
========= =========
Group statement of changes in equity
For year ended 31 March 2018
Share Share
Capital based Profit
Share Merger Trans-lation payment and loss
premium reserve reserve reserve account 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
Share based payment
charge - - - - 24 - 24
Write back of share
based payment reserve - - - - (15) 15 -
________ ________ ________ ________ __________ ___________ __________
Total transactions
with owners - - - - 9 15 24
Loss and total comprehensive
expense - - - 269 - (275) (6)
Balance at 31 March
2017 3,379 1,692 1,388 376 309 (1,107) 6,037
Share based payment
charge - - - - 40 - 40
Write back of share
based payment reserve - - - - - - -
________ ________ ________ ________ ________ ________ ________
Total transactions
with owners - - - - 40 - 40
Loss and Total Comprehensive
expense - - - (487) - 676 189
Balance at 31 March
2018 3,379 1,692 1,388 (111) 349 (431) 6,266
Group statement of financial position
At 31 March 2018
2018 2017
GBP'000 GBP'000
Assets
Non current
Goodwill 391 391
Intangible assets 210 385
Property, plant and equipment 4,325 4,300
Investment in joint venture 917 684
--------- ---------
5,843 5,760
Current
Inventories 2,867 2,662
Trade and other receivables 4,957 4,692
Cash and cash equivalents 692 642
Corporation tax - 32
--------- ---------
8,516 8,028
Total assets 14,359 13,788
========= =========
Liabilities
Current
Trade and other payables (4,349) (3,464)
Borrowings (3,522) (4,013)
Fair value of foreign exchange contracts (6) -
Corporation tax (39) (32)
(7,916) (7,509)
Non-current
Borrowings (152) (126)
Deferred tax (25) (116)
--------- ---------
(177) (242)
Total liabilities (8,093) (7,751)
Net assets 6,266 6,037
========= =========
Equity attributable to owners of the parent
Share capital 3,379 3,379
Share premium account 1,692 1,692
Merger reserve 1,388 1,388
Translation reserve (111) 376
Share based payment reserve 349 309
Profit and loss account (431) (1,107)
Total equity 6,266 6,037
========= =========
Group statement of cash flows
For year ended 31 March 2018
2018 2017
GBP'000 GBP'000
Cash flows from operating activities
Profit/(loss) after taxation from continuing operations 676 (275)
Adjustment for:
- Depreciation 522 513
- Non-cash restructuring - 114
- Net finance costs in income statement 226 218
- Charge relating to foreign exchange derivative contract 6 -
- Amortisation charge 175 190
- Share based payment charge 40 24
- Share of joint venture operating (profit)/loss (209) 49
- Taxation charge/(credit) recognised in income statement (70) (12)
- (Increase) in trade and other receivables (443) (984)
- Increase in trade payables and other payables 950 1,003
- Increase in inventories (341) (25)
--------- ---------
Cash generated by operations 1,532 815
Interest paid (220) (226)
Income taxes received 9 25
Net cash generated by operating activities 1,321 614
========= =========
Cash flows from investing activities
Proceeds of assets sold on disposal of business - (157)
Purchase of plant and equipment (696) (559)
Additions in intangible assets - (75)
Net cash used in investing activities (696) (791)
========= =========
Cash flows from financing activities
Issue of ordinary share capital - -
Repayment of overseas short term borrowing (439)
Repayment/(proceeds) of short term borrowings (60) 41
Payment of finance lease liabilities (76) (77)
--------- ---------
Net cash used in financing activities (575) (36)
Net increase/(decrease) in cash and cash equivalents 50 (213)
Cash and cash equivalents at beginning of year 642 855
--------- ---------
Cash and cash equivalents at end of year 692 642
========= =========
1 General information
Tricorn Group plc and subsidiaries' (the 'Group') principal activities comprise high precision tube manipulation and systems engineering.
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. Tricorn Group plc's shares are quoted on the Alternative Investment Market of the London Stock Exchange.
The consolidated financial statements have been approved for issue by the Board of Directors on 5 June 2018. Amendments to the financial statements are not permitted after they have been approved.
The financial information set out in this final results announcement does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The group income statement, the group statement of comprehensive income, the group statement of changes in equity, the group statement of financial position, the group statement of cash flows and the associated notes for the year ended 31 March 2018 have been extracted from the Group's financial statements upon which the auditor's opinion is unqualified and does not include any statement under Section 498 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2018 will be delivered to the Registrar of Companies following the Group's Annual General Meeting.
2 Accounting policies
Basis of preparation
This financial information has been prepared under the required measurement bases specified under International Financial Reporting Standards (IFRS) and in accordance with applicable IFRS as adopted by the European Union and IFRS as issued by the International Accounting Standards Board.
The Group distinguishes between underlying and non-underlying items in its Consolidated Income Statement. Non-underlying items are material items which arise from unusual non-recurring or non-trading events. They are disclosed on the face of the Consolidated Income Statement where in the opinion of the Directors such disclosure is necessary in order to fairly present the results for the period. Non-underlying items comprise exceptional costs of Group restructuring, intangible assets amortisation and share based payment charges.
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.
The financial information detailed below is frequently reviewed by the Chief Operating Decision maker.
Year ended 31 March 2018 Energy Transport-ation Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
- from external customers 6,279 15,901 - 22,180
- from other segments -
Segment revenues 6,279 15,901 22,180
Underlying operating profit/(loss)* 604 512 (272) 844
Fair value charge relating to forward exchange contracts - - (6) (6)
Intangible asset amortisation - - (175) (175)
Share based payment charge - - (40) (40)
Operating profit/(loss) 604 512 (493) 623
Share of profit from joint venture - - 209 209
Net finance costs (37) (102) (87) (226)
-------- ---------------- ------------ ---------
Profit/(Loss) before tax 567 410 (371) 606
-------- ---------------- ------------ ---------
Other segment information:
Segmental assets 3,249 9,508 1,602 14,359
Capital expenditure 299 526 3 828
Depreciation 121 400 1 522
*- Before intangible asset amortisation, share based payment charges and fair value charges
on foreign exchange contracts
Year ended 31 March 2017 Energy Transportation Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue
- from external customers 4,924 13,595 - 18,519
- from other segments 157 40 (197) -
Segment revenues 5,081 13,635 (197) 18,519
Underlying operating profit/(loss)* 280 329 (112) 497
Restructuring charges (34) (252) (17) (303)
Intangible asset amortisation - - (190) (190)
Share based payment charge - - (24) (24)
Operating profit/ (loss) 246 77 (343) (20)
Share of loss from joint venture - - (49) (49)
Net finance costs (29) (134) (55) (218)
-------- --------------- ------------ ---------
Profit/(loss) before tax 217 (57) (447) (287)
-------- --------------- ------------ ---------
Other segment information:
Segmental assets 3,332 10,051 405 13,788
Capital expenditure 184 476 - 660
Depreciation 200 311 2 513
*- Before intangible asset amortisation, share based payment charges and restructuring costs.
The Group's revenue from external customers (by destination) and its geographic allocation of total assets may be summarised as follows:
Year ended
31 March 2018
Revenue Non-current Current Assets Total Assets
assets
GBP'000 GBP'000 GBP'000 GBP'000
United Kingdom 10,805 3,392 5,142 8,543
Europe 825 - - -
North America 9,861 2,451 3,159 5,610
Rest of World 689 - 215 215
-------- ----------- -------------- ------------
22,180 5,843 8,516 14,359
======== =========== ============== ============
Year ended
31 March 2017
Revenue Non-current Current assets Total Assets
assets
GBP'000 GBP'000 GBP'000 GBP'000
United Kingdom 8,989 2,455 4,903 7,358
Europe 1,086 - - -
North America 7,645 2,622 2,938 5,560
Rest of World 799 683 187 870
-------- ----------- -------------- ------------
18,519 5,760 8,028 13,788
======== =========== ============== ============
4 Earnings 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:
31 March 2018
Weighted average Earnings per
Profit number of shares share
GBP'000 Number '000 Pence
Basic earnings per share 676 33,795 2.00
-------- ----------------- ------------
Dilutive shares - 2,546 -
Diluted earnings per share 676 36,341 1.86
-------- ----------------- ------------
31 March 2017
Weighted average Loss per
Loss number of shares share
GBP'000 Number '000 Pence
Basic loss per share (275) 33,795 (0.81)
------- ----------------- --------
Dilutive shares - - -
Diluted loss per share (275) 33,795 (0.81)
------- ----------------- --------
The diluted loss per share for 2017 is the same as the basic loss per share as the Group was loss making in 2017 and, therefore, share options were anti-dilutive.
The directors consider that the following adjusted earnings per share calculation is a more appropriate reflection of the Group's performance.
31 March 2018
Weighted
average
number of
Profit shares Earnings
per share
GBP'000 Number '000 Pence
Basic earnings per share 676 33,795 2.00
---------------- ------------ ------------
Fair value of foreign exchange
contracts 6
Amortisation of intangible asset 175
Share based payment charge 40
Adjusted earnings per share 897 33,795 2.65
---------------- ------------ ------------
Dilutive shares - 2,546 -
Diluted adjusted earnings per
share 897 36,341 2.47
---------------- ------------ ------------
31 March 2017
Weighted
average
number of
Loss shares Loss per
share
GBP'000 Number '000 Pence
Basic loss per share (275) 33,795 (0.81)
---------------- ------------ --------------
Restructuring costs 303
Amortisation of intangible asset 190
Share based payment charge 24
Adjusted earnings per share 242 33,795 0.72
---------------- ------------ --------------
Dilutive shares - - -
Diluted adjusted earnings per
share 242 33,795 0.72
---------------- ------------ --------------
5 Dividend
The Board is not recommending the payment of a final dividend (2017: nil).
6 Availability
Copies of this announcement are available from the Company's registered office, Spring Lane, Malvern, Worcestershire, WR14 1DA, and on its website, www.tricorn.uk.com.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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