Losses set to improve for manufacturer Tricorn

MALVERN-based engineering group, Tricorn, has said it expects full year adjusted losses to be slightly better than expected following a boost to its business from improved demand in the United States and China.

The group said the higher demand in the two overseas markets during the second half of the year had helped to offset a reduction in demand in the UK during the same period.

“Adjusted LBT (loss before tax) for the year is now expected to be slightly better than market expectations. Net debt at the year-end was lower than at the previous year-end,” it said in a market update.

The AIM-listed tube manipulation specialist said revenue for the year to March 31, 2015 was expected to be broadly in line with the previous year and in line with market expectations.

“In the Transportation division increased second half revenues, when compared to the first half of the year, in the USA and China businesses have helped to offset lower second half UK demand. Revenue in the Energy division will be ahead of the previous year,” it said.
 
The group said a series of changes to the senior management of its US team implemented in September 2014 had also yielded better results. It said there had been “significant and sustained improvement” in the performance of the business. It exited the year with improving margins, a lower cost base and increasing momentum.
 
In the UK, the group is installing new plant and equipment at its West Bromwich-based Maxpower Automotive plant. The move is in support of a plan to achieve turnover of £10m over the next five years, a strategy boosted by a major contract win in December.

It added that both its wholly owned and joint venture businesses in China continued to attract new business.

Tricorn said further details and an update on current trading would be given when it announced its full year results on June 10.