Share trading in troubled manufacturer suspended

Trading in shares at troubled Worcestershire-based tubing manufacturer Tricorn have been suspended.

In a statement to the London Stock Exchange, Tricorn, which is listed on AIM, said it had requested the temporary move pending clarification of its financial position.

The news comes just under a month after the firm put itself up for sale, saying it didn’t have enough cash to implement a turnaround plan.

The listed Malvern company, which in June revealed there had been a “breakdown in the control and oversight of the finance function” during 2020, said last month that it has appointed Arden Partners to find a buyer.

Last month, Tricorn announced that it had slipped to a loss of £7m for the 18 month period to 30 September.

In a statement this morning, the Tricorn said: “In light of the continuing pressure on immediate working capital requirements and cash constraints the board has concluded that, in the absence of a viable solution for additional funding or an offer for the shares of the company, in the time available it would be in the best interests of stakeholders as a whole to pursue a sale of the company’s trading operations and/or subsidiaries in order to secure the best possible outcome for creditors, suppliers, customers, and staff.

Following this decision, the coard has concluded the strategic review. With the conclusion of the strategic review, the company is no longer in an offer period as defined by the City Code on Takeovers and Mergers  and the disclosure requirements pursuant to Rule 8 of the Takeover Code are no longer applicable as from the time this announcement is released.

“It is expected that, in the event such transaction(s) conclude, these would be likely to be conducted out of administration, in order to safeguard the continuity of the operation and employment, and consequently the consideration receivable by the company is unlikely to result in any value for equity shareholders.”