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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 : 4463J
Tricorn Group PLC
05 December 2018
5 December 2018
Tricorn Group plc
("Tricorn" or the "Group")
Interim Results
For the six months ended 30 September 2018
Tricorn Group plc (AIM: TCN.L) the AIM listed tube manipulation specialist, announces its unaudited interim results for the six months ended 30 September 2018.
Highlights (comparable six months ended 30 September 2017)
Hot Features
Premium
-- Earnings per share increased 52% to 1.52p
-- Profit up 49.5% to GBP0.553m
-- Gross margin up 0.5%
-- Improved profitability of the Transportation division
-- Continued growth in profits from the China Joint Venture
Financial Summary
Unaudited Unaudited
six months to six months to Year ended
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
Revenue 11,415 11,427 22,180
EBITDA* 944 744 1,575
Profit before tax* 553 370 827
Cashflow generated by operations 320 332 1,532
Cash & cash equivalents 643 887 692
Net (Debt) (3,288) (3,470) (2,982)
Earnings per share - basic* 1.52p 1.00p 2.65p
- -
-------------- -----------
*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.
Andrew Moss, Chairman of Tricorn, commented:
"The Group has made good progress over the past six months with a focus on margins which contributed to a significant increase in profit before tax and a 52% increase in earnings per share compared to the first half of last year.
This reflects the benefits of an efficient operational base spanning three key geographic regions, a global customer base and new business opportunities across both divisions, which are being implemented. The pipeline of new business opportunities remains encouraging.
Over the past two years, we have seen significant growth in our end markets. However, towards the end of the period, we witnessed signs of this growth slowing. Against this background, and after considering the impact of new business wins, the Board anticipates Group revenues in the second half to be similar to the first and full year underlying profit before tax to 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 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 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 2018
Revenue for the Group at GBP11.415m was in line with the six months ended 30 September 2017 (the "Corresponding Period") (2017: GBP11.427m) and 6.2% ahead of the previous six months. Growth in the Transportation division offset the reduction in the Energy division where demand from the power generation rental sector was, as anticipated, lower than the Corresponding Period.
The improved profitability of the Transportation division and the further progress of our joint venture in China enabled the Group to deliver a significant improvement in profit before tax which at GBP0.553m (2017: GBP0.370m) was 49.5% ahead of the Corresponding Period.
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.
In the UK, Maxpower Automotive made excellent progress with the operation benefitting from ongoing investment. The rigid hydraulic tube business continued to grow and investment in a new in-house cutting cell towards the end of the period yielded further productivity gains. The business secured in the prior year with the London Electric Vehicle Company for brake pipe assemblies transitioned to the production phase towards the end of the period.
In the USA, Franklin Tubular Products increased profitability further and continued to expand its customer base. Market conditions remained favourable but the lower unemployment rates have provided some challenges in recruiting and retaining skilled employees as the business grows.
Overall externally reported segmental revenue was GBP8.495m (2017: GBP8.097m), up 4.9% compared to the Corresponding Period. Segmental profit before tax was up 149.3% at GBP0.389m (2017: GBP0.156m).
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.
Malvern Tubular Components continued to make good progress in developing new business opportunities and in maintaining productivity through a period of lower demand. Revenue at GBP2.920m (2017: GBP3.330m) was, as anticipated, lower than the Corresponding Period due to the reduction in demand from the power generation rental sector. Segmental profit was GBP0.187m (2017: GBP0.278m).
Joint Venture
Our Chinese joint venture, Minguang-Tricorn Tubular Products performed well, benefiting from a strong operational performance and favourable market conditions. The Group's share of profit before tax at GBP0.150m (2017: GBP0.099m) was substantially up on the Corresponding Period last year.
Financial Review
The Group has made good progress through the first six months of the financial year, with revenue increasing over the second half of the last financial year and underlying profitability increasing over both the first and second halves of the previous financial year.
The success that the Group has enjoyed in winning contracts with new and existing customers has required additional investment in the first half of the financial year and the short-term increase in net debt, from the year end position, will be offset by the longer term benefits that those contracts bring.
Income Statement
Revenue for the first half of the financial year at GBP11.415m was in line with the Corresponding Period (2017: GBP11.427m), with the Group benefitting from an increase in revenue from the power generation rental sector through the first half of last year. Against the preceding six months, revenue was up 6.2% (2017: GBP10.753m).
The Group was able to improve gross margins to 38.5% in the first half of the financial year, compared to 38.0% in the Corresponding Period. Coupled with a reduction in administration and distribution costs of 1.7%, the Group demonstrated its discipline on costs control despite external upward pressures. This resulted in an improved EBITDA of GBP0.944m (2017: GBP0.744m).
The Group's joint venture in China continued to perform well operationally and delivered a share of profit before tax for the Group in the first half of the financial year of GBP0.150m (2017: GBP0.099m). After finance charges the Group delivered a significant improvement in underlying profit before tax of GBP0.553m (2017: GBP0.370m), up 49.5% over the Corresponding Period.
After deducting intangible asset amortisation and share based payment charges, headline profit before tax was up 85.9% at GBP0.476m (2017: GBP0.256m).
The underlying earnings per share were 1.52p (2017: 1.00p) and after deducting non-underlying items the basic earnings per share were 1.29p (2017: 0.66p).
Cash Flow
The first half of the financial year traditionally sees the Groups cashflow performance deliver below its full year target for cash generated by operations to EBITDA of 1:1, with a number of annual payments falling in this first six months period. In addition, in the year to date the Group has supported a number of new customer contracts which have resulted in additional first half cash expenditure, but will benefit the Group over the life of those contracts. Specific areas of spend included the funding of tooling and the holding of finished goods. As a result the Group's net cash generated from operations of GBP0.320m (2017: GBP0.332m) was broadly in line with the Corresponding Period.
The Group's investment in capital expenditure in the first half was in excess of depreciation and higher than the Corresponding Period at GBP0.327m (2017: GBP0.281m). Intangible asset expenditure of GBP0.076m was also incurred in the first half of the financial year which related to costs associated with new product introduction.
Net debt was down at the half year end at GBP3.288m compared to the Corresponding Period of GBP3.470m, but up on the previous full year position of GBP2.982m. Gearing was down on the corresponding period to 48.3% (2017: 57.5%), but up marginally on the March 2018 year end position of 47.6%.
Balance Sheet
Total assets at 30 September 2018 were GBP14.884m, up GBP0.682m on 30 September 2017. As well as an increase in fixed assets and inventories, the improved trading position of the Group's Chinese joint venture saw the value of the investment increase to GBP1.066m.
Net working capital at 30 September 2018 was GBP4.012m, which was GBP0.040m lower than at 30 September 2017 and GBP0.537m higher than at 31 March 2018.
Outlook
The Group has made good progress over the past six months with a focus on margins which contributed to a significant increase in profit before tax and a 52% increase in earnings per share compared to the first half of last year.
This reflects the benefits of an efficient operational base spanning three key geographic regions, a global customer base and new business opportunities across both divisions, which are being implemented. The pipeline of new business opportunities remains encouraging.
Over the past two years, we have seen significant growth in our end markets. However, towards the end of the period, we witnessed signs of this growth slowing. Against this background, and after considering the impact of new business wins, the Board anticipates Group revenues in the second half to be similar to the first and full year underlying profit before tax to be in line with market expectations.
Andrew Moss Mike Welburn
Chairman Chief Executive
Group statement of comprehensive income
For period ended 30 September 2018
Note Unaudited Unaudited
Unaudited Unaudited six six
six months six months months to months to Audited
to 30 to 30 30 30 year ended
September September September September 31 March
2018 2018 2018 2017 2018
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Underlying Non-Underlying Group
Revenue 3 11,415 - 11,415 11,427 22,180
Cost of sales (7,016) - (7,016) (7,087) (13,685)
------------ -------------- ----------- --------- ----------
Gross profit 4,399 - 4,399 4,340 8,495
Distribution costs (510) - (510) (520) (1,005)
Administration costs
* General administration costs (3,374) - (3,374) (3,432) (6,646)
* Restructuring costs - - - - -
* Intangible asset amortisation - (59) (59) (108) (175)
* Share based payment charge - (18) (18) (6) (40)
* Fair value change relating to forward exchange
contracts - - - - (6)
------------------------------------------------------- ---- ------------ -------------- ----------- --------- ----------
Total administration costs (3,374) (77) (3,451) (3,546) (6,867)
Operating profit/(loss) 515 (77) 438 274 623
------------ -------------- ----------- --------- ----------
Share of profit/(loss) from joint venture 150 - 150 99 209
Finance costs (112) - (112) (117) (226)
Profit/(loss) before tax 3 553 (77) 476 256 606
Income tax expense (41) - (41) (33) 70
Profit/(Loss) for the year and total comprehensive
income/(expense) 512 (77) 435 223 676
============ ============== =========== ========= ==========
Attributable to:
Equity holders of the parent company 512 (77) 435 223 676
============ ============== =========== ========= ==========
Continuing Operations
Earnings per share:
Basic earnings per share 4 1.29p 0.66p 2.00p
Diluted earnings per share 4 1.16p 0.61p 1.86p
Group statement of changes in equity
For period ended 30 September 2018
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 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
expense - - - - - 223 223
----------------------------------------- ------------------------------------------- ------------------------------------------- ----------------------------------------------- ------------------------------------------ ------------------------------------------- -------------------------------------
Balance at 30 September
2017 3,379 1,692 1,388 144 315 (884) 6,034
(unaudited)
Share based payment
charge - - - - 34 - 34
----------------------------------------- ------------------------------------------- ------------------------------------------- ----------------------------------------------- ------------------------------------------ ------------------------------------------- -------------------------------------
Total transactions with
owners - - - - 34 - 34
Foreign exchange gain
on translation of
Reserves - - - (255) - - (255)
Total comprehensive
expense - - - - - 453 453
----------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------------ ------------------------------------------ ------------------------------------------- -------------------------------------
Balance at 31 March
2018 3,379 1,692 1,388 (111) 349 (431) 6,266
(audited)
Share based payment
charge - - - - 18 - 18
----------------------------------------- ------------------------------------------- ------------------------------------------- ----------------------------------------------- ------------------------------------------ ------------------------------------------- -------------------------------------
Total transactions with
owners - - - - 18 - 18
Foreign exchange loss
on translation of
Reserves - - - 88 - - 88
Total comprehensive
income - - - - - 435 435
----------------------------------------- ------------------------------------------- ------------------------------------------- --------------------------------------------- ------------------------------------------ ------------------------------------------- -------------------------------------
Balance at 30 September
2018 3,379 1,692 1,388 (23) 367 4 6,807
(unaudited)
========================= ========================= =========================== ========================= ============================ ========================= =====================
Group statement of financial position
At 30 September 2018
Unaudited Unaudited Audited
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
Assets
Non current
Goodwill 391 391 391
Intangible assets 228 279 210
Investment in Joint Venture 1,066 782 917
Property, plant and equipment 4,504 4,149 4,325
------------ ------------ ---------
6,189 5,601 5,843
Current
Inventories 2,981 2,630 2,867
Trade and other receivables 5,071 5,052 4,957
Cash and cash equivalents 643 887 692
Corporation tax - 32
------------ ------------ ---------
8,695 8,601 8,516
Total assets 14,884 14,202 14,359
============ ============ =========
Liabilities
Current
Trade and other payables (4,040) (3,630) (4,349)
Borrowings (3,815) (4,234) (3,522)
Fair value of foreign exchange contracts - - (6)
Corporation tax (80) (65) (39)
(7,935) (7,929) (7,916)
Non-current
Borrowings (117) (123) (152)
Deferred tax (25) (116) (25)
------------ ------------ ---------
(142) (239) (177)
Total liabilities (8,077) (8,168) (8.093)
Net assets 6,807 6,034 6,266
============ ============ =========
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 (23) 144 (111)
Share based payment reserve 367 315 349
Retained earnings 4 (884) (431)
Total equity 6,807 6,034 6,266
============ ============ =========
Group statement of cash flows
For period ended 30 September 2018
Unaudited Unaudited Audited
six months six months year ended
to to
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit after taxation 435 256 676
Adjustment for:
Depreciation 278 257 522
Net finance costs in statement of comprehensive
income 112 117 226
Amortisation charge 59 108 175
Share based payment charge 18 6 40
Share of joint venture operating profit (150) (99) (209)
Charge relating to foreign exchange derivative
contracts - - 6
Taxation expense/(credit) recognised
in statement of comprehensive income 41 - (70)
Increase in trade and other receivables (77) (453) (443)
(Decrease)/Increase in trade payables
and other payables (347) 193 950
(Increase in inventories (49) (53) (341)
------------ ------------ ----------
Cash generated by operations 320 332 1,532
Interest paid (137) (146) (220)
Income taxes received - - 9
Net cash generated by operating activities 183 186 1,321
============ ============ ==========
Cash flows from investing activities
Purchase of plant and equipment (327) (281) (696)
Purchase of intangible assets (76) - -
Net cash used by investing activities (403) (281) (696)
============ ============ ==========
Cash flows from financing activities
Repayment of overseas short term borrowing - - (439)
Movement in short term borrowings 213 399 (60)
Payment of finance lease liabilities (42) (59) (76)
------------ ------------ ----------
Net cash generated by/(absorbed by) financing
activities 171 340 (575)
Net (decrease)/increase in cash and cash
equivalents (49) 245 50
Cash and cash equivalents at beginning
of period 692 642 642
------------ ------------ ----------
Cash and cash equivalents at end of period 643 887 692
============ ============ ==========
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 5 December 2018 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 2018 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 2018. 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 2018, 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 2018 (unaudited)
Energy Transportation Corporate Joint Venture Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2,920 8,495 - 11,415
Segmental profit/(loss) before tax 187 389 (173) 150 553
Intangible asset amortisation (59)
Share based payment charge (18)
________
Profit before tax 476
Segmental total assets 3,287 9,766 1,831 - 14,884
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
3 Segmental reporting (continued)
Year ended 31 March 2018
Energy Transportation Corporate Joint Venture Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 6,279 15,901 - - 22,180
Segmental profit/(loss) before tax 567 410 (359) 209 827
Fair value charge relating to forward exchange
contracts (6)
Intangibles amortisation (175)
Share based payment charge (40)
_________
Profit before tax 606
Segmental total assets 3,249 9,508 1,602 - 14,359
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.
Six months ended 30 September 2018
Weighted average
Profit number of shares Earnings per
share
GBP'000 Number '000 Pence
Basic earnings per share 435 33,795 1.29p
-------- ----------------- --------------
Dilutive shares 3,721
Diluted earnings per share 435 37,516 1.16p
-------- ----------------- --------------
Six months ended 30 September 2017
Weighted average
Profit number of shares Earnings per
share
GBP'000 Number '000 Pence
Basic earnings per share 223 33,795 0.66p
-------- ----------------- --------------
Dilutive shares 2,815
Diluted earnings per share 223 36,610 0.61p
-------- ----------------- --------------
4 Earnings/(Loss) per share (continued)
31 March 2017
Weighted average
Profit number of shares Earnings per
share
GBP'000 Number '000 Pence
Basic earnings per share 676 33,795 2.00p
-------- ----------------- --------------
Dilutive shares 2,546
Diluted earnings per share 676 36,341 1.86p
-------- ----------------- --------------
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 2018
Profit Weighted average Earnings per
number of shares share
GBP'000 Number '000 Pence
Basic earnings per share 435 33,795 1.29p
-------- ------------------ -------------
Intangible asset amortisation 59
Share based payment charge 18
Adjusted earnings per share 512 33,795 1.52p
-------- ------------------ -------------
Dilutive shares 3,721
Diluted adjusted earnings
per share 512 37,516 1.36p
-------- ------------------ -------------
Six months ended 30 September 2017
Weighted average
Profit number of shares Earnings per
share
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
-------- ----------------- --------------
31 March 2018
Weighted average
Profit number of shares Earnings per
share
GBP'000 Number '000 Pence
Basic earnings per share 676 33,795 2.00p
-------- ----------------- --------------
Fair value of foreign exchange
contracts 6
Intangible asset amortisation 175
Share based payment charge 40
Adjusted earnings per share 897 33,795 2.65p
-------- ----------------- --------------
Dilutive shares 2,546
Diluted adjusted earnings per
share 897 36,341 2.47p
-------- ----------------- --------------
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
IR UGGQCPUPRGMC
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