H1 revenues rise 15% for Tricorn but profits disappoint on weak UK demand
A WEST Bromwich engineering group has said quotations for new business are at record levels, driven largely by overseas demand.
However, in its interims report Tricorn has warned it has seen a softening in demand among its UK businesses during the second half – a situation seemingly at odds with recent manufacturing surveys.
The group, which specialises in the manipulation of pipe and tubing assemblies to niche markets in the energy & utilities, transportation and aerospace sectors, has now predicted that H2 revenues and pre-tax profit levels will only be in line with those reported in H1.
“As we continue to develop our global platform we are encouraged by the opportunities for growth. Requests for quotations are at record levels driven largely by our strategic investments in overseas facilities,” it said.
“In the near term however, after some early positive signs in the second half, we have seen demand levels soften again for our UK businesses. As a result we now anticipate second half revenues and PBT to be in line with those reported in the first half.”
The outlook rather dampens H1 performance, which shows a 15% increase in revenue to £13.272m (2012: £11.552m). Revenue from its US acquisition and a modest but increasing contribution from its Chinese facility, more than offset lower revenues from the UK businesses.
However, adjusted pre-tax profit was down considerably at £0.204m (2012: £0.855m) – below management expectations. Total assets increased to £15.868m (2012: 13.987m), which it said demonstrated the group’s continued focus on investment for future growth.
In line with its dividend policy, the board has declared an interim dividend of 0.13p per share to shareholders on the register on February 7, 2014. The dividend will be paid on February 21, 2014.
Nick Paul, chairman of Tricorn said: “With operations now established in the USA and China, the group has significantly enhanced its capabilities from a year ago. We have a clear focus of meeting our customers’ needs for tube assemblies wherever they operate worldwide and we have made some excellent progress towards achieving this goal.
“In the near term, the UK businesses are seeing slightly softer than anticipated market conditions, but we are well positioned to benefit as economies improve and we remain confident in our future prospects.”
