Energy and China drag down manufacturer’s performance

MANUFACTURER Tricorn Group said it has taken “swift and decisive action” after sales fell 15% to avoid impacting on its profits.

The Worcestershire engineering group had warned in December that sales would be down in the year to March, but the situation worsened in the final months of its financial year.

Its loss-making China operations are to be merged onto a single site, a move which Tricorn expects will make the division profitable, while its UK energy division has cut costs in response to lower demand.

Sales will be down around £3m from last year’s £21.2m, but the group said adjusted operating profit for the year will “remain in line with market expectations”.

More positively, its American transportation division is increasing its new business and is expected to be profitable this year while a contract with Maxpower Automotive in the UK increased revenues.

Tricorn’s shares, which are listed on the Alternative Investment Market, are around one-third of their value last June, having declined from a high of 21p to close last night at 7.6p.