Strong aerospace sector lifts Tricorn in H1

MALVERN-based engineering firm Tricorn Group has seen an improved first half performance driven by a strengthening aerospace sector.

The AIM-listed tube manipulation specialist said the six months to September 30 had seen improvements to operating margin and pre-tax profit compared with the same period last year.

“A key driver for the higher profitability of the group has been the further improvements in operating margin and higher revenues within the aerospace division. With market conditions expected to remain favourable and new business secured, the prospects for the division are encouraging,” it said.

It said it was pleased as this had been achieved despite after absorbing costs associated with the initial start up of the China facility and against softer markets outside of aerospace.

Tricorn said that as highlighted at its recent AGM, there had been some softening of demand through the second quarter, most notably within the transportation division.
 
“Inevitably the more cautious outlook expressed by some key customers has led to a degree of destocking through the period with customers looking to lower inventory levels,” it said.

In the energy and utilities division, the firm said there had been a further increase in both operating margins and profitability despite slightly lower revenues for the period.

It said the Chinese facility remained on track to be operational by the end of the current year. Discussions with the group’s wider customer base regarding the new facility have been encouraging, it added.

Sales for the second half are anticipated to be at similar levels to the first six months and full year pre-tax profit is expected to be in line with market expectations.

Tricorn said it would provide a further update at the time of its unaudited interim results for the six months ended September 30, 2012, which is expected to be on December 3, 2012.

Besides aerospace, the firm also operates in the Energy & Utilities and Transportation sectors. Tricorn employs around 300 employees and operates through four brands: MTC; Redman Fittings; Maxpower and RMDG Aerospace.