Challenging second half results in pre-tax loss for Tricorn
WEST Bromwich and Malvern engineering group Tricorn has announced a pre-tax loss of £343,000 after undergoing a challenging second half to its financial year.
The AIM quoted tube manipulation specialist said the impact of structural change together with an expansion of its international operations had also impacted on the business.
It has chosen to focus on future growth and has taken a 14.6% rise in annual revenue to £24.460m (2013 restated: £21.347m) as the basis of its confidence.
Nick Paul, chairman of Tricorn, said: “The year has proved challenging with expansion in our international manufacturing capability coinciding with necessary structural change. Tricorn has successfully delivered these changes whilst absorbing the costs, which demonstrates the resilience of the group.
“Tricorn has made significant progress in laying the foundations for long term growth and has made further encouraging progress in strengthening relationships with its blue chip customers. With manufacturing facilities now established in the USA and China, the group is well positioned to capitalise on the growth anticipated from these regions and as markets recover.”
The group said the second half of the year had proved challenging compared to the first half.
The underlying pre-tax loss of £0.343m, compared with a pre-tax profit of £1.614m for the year before. Given the results for the year, the board said it would not be recommending the payment of a final dividend.
It said the restructuring of the Energy and Aerospace businesses was completed as planned and the group was continuing to focus on maintaining a strong balance sheet. Overall cash inflow in the second half of the year was positive and net debt reduced from the half year position.
“Whilst there have been some recent signs of improvements in our markets, the board remains cautious regarding the group’s short term prospects,” it added.
The company, which employs 400 people, supplies pipe and tubing assemblies to niche markets worldwide in the Energy, Transportation and Aerospace sectors.
