Tricorn to recommend improved dividend after strong trading
WORCESTERSHIRE engineering group Tricorn is to recommend payment of an improved dividend following a strong trading year.
The Malvern-based tube manipulation specialist, which is quoted on AIM, said in a pre-close trading update for the financial year to March 31, 2013 that it had made significant progress during the year towards becoming a global tube solutions provider.
This has included the establishment of a new wholly-owned manufacturing facility in China and the acquisition of a tubular products manufacturing business in the USA; both developments being funded entirely from the group’s own cash resources.
“These strategic advances create a very high quality global sourcing, manufacturing and supply business capable of considerable growth in its niche markets worldwide,” said the firm.
It said the first product shipments had already been made from the Chinese facility – less than 12 months after it announced its intention to expand in the region.
“With nominations for supply now being received from a wider customer base, the board is very optimistic regarding future business development in this key market,” it added.
“Given the continued strong performance of the group, the board will be recommending the payment of a final dividend increased on 2012 as part of its progressive dividend policy.”
Further details on this and current trading will be given when the company announces its preliminary results on June 4, 2013.
The group’s performance has been aided by its acquisition last month of the trade and certain assets of the former Whitley Products Inc in a deal worth £1.95m. Following the takeover, the group set up a new company, Franklin Tubular Products Inc, comprising a facility in North Carolina and certain plant and equipment from a facility in Indiana.
Tricorn said the transfer of equipment had proceeded as planned and the business has already started to supply key customers.
“The board is encouraged with the opportunities for growth in the market,” it added.
In the Aerospace Division revenue is reported to be ahead of the previous year. The business has a healthy pipeline of new business opportunities and has already been successful on a number of new packages of work. The division is awaiting feedback on a number of other quotations.
Tricorn, which employs around 400 people at five manufacturing facilities in China, USA and UK, operates through five brands: MTC; Redman Fittings; Maxpower; RMDG Aerospace; and Franklin Tubular Products. It supplies into Energy & Utilities, Transportation and Aerospace sectors.
