Manufacturer reports ‘breakdown in control of finance function’ as it posts major losses

A “breakdown in the control and oversight of the finance function” at Worcestershire-based tubing manufacturer Tricorn has led to the firm’s new finance team disclaiming their opinion on the firm’s financial statements over the last 18 months.

Tricorn, which has slipped to a loss of £7m for the 18 month period to 30 September.

The Malvern firm announced the appointment of Michael Stock as group finance director, replacing Phillip Lee who had been with the companyfor 11 years. Stock joined the group on 3 August 2020 and, following a review of the capabilities of the finance team, determined the need to hire a “new, stronger and more experienced” team. Under his leadership, this new team conducted an internal review of the performance of the group and “various matters” came to light in the preparation of the group’s financial statements for the period.

Tricorn has described the failure to keep proper financial statements during this time as “extremely disappointing” and has posted a loss before tax for the period of £7.7m.

The company says its performance for the extended accounting period was “significantly” impacted by the pandemic.