TCN Tricorn Group Plc

TIDMTCN

RNS Number : 2058P

Tricorn Group PLC

09 October 2019

9 October 2019

Tricorn Group plc

("Tricorn" or the "Group")

Trading Update

Tricorn Group plc (AIM: TCN.L), the AIM listed tube manipulation specialist, provides the following pre-close trading update for the six months ended 30 September 2019 (the "Period").

The Period started encouragingly with the new paint facility in the USA integrating well and ahead of plan. Demand in the USA has remained broadly in line with expectations, but the USA operation has seen some short-term pressure on margins. This has been due to a lag between the impact of the increase in tariffs in the USA on goods sourced from China and the time taken to negotiate price increases with customers.

The Joint Venture in China performed in line with expectations.

In the UK demand slowed significantly through the second quarter resulting in revenue for the Period being around 12% lower than the six months ended 30 September 2018 (the "Corresponding Period").

As a result, first half revenue for the Group is expected to be around 7% down on the Corresponding Period and slightly lower than expectations.

PBT for the Period will be lower than the Corresponding Period reflecting both the lower demand levels and short-term pressure on margins in the USA.

There is a strong pipeline of opportunities and the Board continues to evaluate the impact of new business inload and the extent to which this can offset the impact of weaker underlying market conditions. However, the Board now anticipates that full year results will be materially lower than market expectations.

Tricorn will provide a further update on current trading and prospects at the time of the release of its unaudited interim results for the six months ended 30 September 2019, which is expected to be on 4 December 2019.

*All references to PBT are before intangible asset amortisation, share based charges and foreign exchange derivative valuation.

For further information please contact:

 
 Tricorn Group plc 
 Mike Welburn, Chief Executive        Tel +44 (0)1684 569956 
 Phil Lee, Group Finance Director         www.tricorn.uk.com 
 
 Shore Capital 
 Tom Griffiths                      Tel + 44 (0)20 7408 4080 
  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 China, USA and UK.

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.

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