TIDMTCN
RNS Number : 8730H
Tricorn Group PLC
06 June 2011
Preliminary Results
Tricorn Group plc ('Tricorn' or the 'Group'), (TCN.L) the AIM
quoted tube manipulation specialist, today announces its audited
preliminary results for the year ended 31 March 2011.
Highlights
-- Revenue up 45% to GBP21.8m (2010:GBP15.0m)
-- Operating profit margin* up 95% to 5.5%
-- Increased cash position and substantial reduction in net
debt
-- Adjusted earnings per share up 3.2 times to 2.57p
-- Maiden dividend recommended
Summary
2011 2010 Change
GBP'000 GBP'000 %
Revenue 21,764 15,031 45
Operating profit* 1,198 425 182
Operating profit margin* 5.5% 2.8% 95
Profit before tax* 1,066 288 270
Cash & cash equivalents 1,612 1,296 24
Net debt 61 841 93
Adjusted EPS 2.57p 0.79p 325
Recommended dividend per share 0.1p -
* All references to operating profit and profit before tax are
before intangible asset amortisation, share based charges, interest
rate swap and foreign exchange derivative valuation.
Nick Paul CBE, Chairman of Tricorn commented:
"Tricorn has made encouraging progress throughout the year with
revenues across the Group up 45% and with a significant improvement
in operating margins. The energy and transportation sectors have
been the principal drivers for this, benefiting from market
recovery and increasing market share.
Based on the progress we have made and our confidence in future
prospects, the Board is recommending the payment of a maiden
dividend of 0.1p per share as part of a longer term progressive
dividend policy."
Enquires:
Tricorn Group plc Tel +44 (0)1684 569956
Mike Welburn, Chief Executive www.tricorn.uk.com
Phil Lee, Group Finance Director corporate@tricorn.uk.com
Arbuthnot Securities Limited Tel + 44 (0)207 012 2000
Tom Griffiths/Ed Groome
Winningtons Tel + 44 (0)797 122 1972
Tom Cooper
Notes to Editors:
Tricorn Group plc (TCN:L) is a value added manufacturer and
specialist manipulator of pipe and tubing assemblies to niche
markets worldwide in the Energy, Transportation, Aerospace &
Utilities sectors.
Headquartered in Malvern, UK, Tricorn employs over 300 employees
and operates through four brands: MTC; Redman Fittings; Maxpower;
and RMDG Aerospace.
Annual Report and Accounts
The preliminary results announcement can be downloaded from the
Company's website (www.tricorn.uk.com). Copies of the Annual Report
and Accounts (as well as the notice of Annual General Meeting) will
be sent to shareholders by 25 August 2011 for approval at the
Annual General Meeting to be held on 22 September 2011 and copies
will be available on the Company's website and from its registered
office, Spring Lane, Malvern, Worcestershire, WR14 1DA
Chairman's and Chief Executive's statement
Performance in the year ended 31 March 2011
We are pleased to report a very strong performance with
encouraging progress Group wide. Revenue, operating profit margin*
and earnings per share have all showed significant uplift on
2010.
Revenue grew by 45%, operating profit margin* increased by 95%
and adjusted earnings per share was up 3.2 times to 2.57p.
At the same time we have remained focused on strengthening the
balance sheet. Cash and cash equivalents were up 24% to GBP1.6m at
the year end and net debt had been reduced by 93% from GBP0.841m at
31 March 2010 to GBP0.061m at 31 March 2011.
Based on the progress we have made and our confidence in future
prospects, the Board is recommending the payment of a maiden
dividend of 0.1p per share as part of a longer term progressive
dividend policy.
Operational Review
The Group operates four main business segments which are focused
on the energy, transportation, aerospace and utilities sectors. The
businesses serve a global blue chip OEM customer base, many of whom
have major facilities in the UK and the rest of Europe. The final
product is then shipped into world markets from these facilities
which effectively extends the Group's global reach and reduces its
dependency on the UK economy.
We have made encouraging progress throughout the year with Group
revenues up 45% on 2010 and with a significant improvement in
operating margins. The energy and transportation segments have been
the principal drivers for this benefiting from market recovery and
increasing market share. Demand within the utilities segment also
increased throughout the year albeit from a lower base. There was a
modest improvement in aerospace performance through the second half
of the year.
Energy
Our Malvern Tubular Components business specialises in
fabricated and manipulated tubular assemblies for large diesel
engines and radiator sets used within the energy sector,
principally power generation, mining and oil and gas applications.
We have made good progress through the year with revenue up 81% on
the previous year. With demand remaining strong, we committed to
significant investment in plant and equipment through the latter
part of the financial year which will position us well for further
growth. Looking forward, we expect this investment to continue at
significantly higher levels than in recent years.
Transportation
Maxpower Automotive is focused on nylon, rigid and hybrid
tubular products for engines, braking systems and fuel sender
sub-systems. Revenue increased 53% year on year as a result of more
favourable market conditions and additional business secured. Our
focus on lean implementation has also progressed well and the
improvement in operating margin has been very positive. The
development of the next generation of product fixtures that allow
electronic verification of critical component characteristics has
been extremely well received by customers and positions us well for
new business opportunities.
Aerospace
RMDG Aerospace supplies rigid pipe assemblies used in a variety
of applications within the aerospace sector. Revenues were broadly
similar to the previous year but we have experienced some supply
chain constraints coupled with higher material costs. The delay in
being able to pass these increases on to our customers has put
pressure on operating margins which we expect to address over the
coming months.
Utilities
Redman Fittings holds worldwide patents on a unique method of
joining polyethylene pipes. Its customers include major OEMs which
are supplied with a branded version of the product which is then
incorporated within their "barrier" pipe systems. These multi-layer
pipe systems are used within the water industry in brown field site
developments providing advantages in performance and overall cost.
Revenue increased 77% year on year reflecting higher levels of
activity in this area. With increasing focus on soil contamination
levels we are optimistic that this could stimulate further growth
within the sector. The business continued to deliver double digit
segmental profit margins.
Financial Review
The Group has delivered a strong set of results for the 2010/11
financial year. It has built on the positive results of 2009/10 and
continued to focus on its key objectives to improve financial
performance. As a result we have seen increased revenue, operating
profit* and EPS*, as well as a significant improvement in the
Group's net debt position.
The strong performance has resulted in the Board recommending
the payment of a maiden dividend of 0.1p per share for the full
year to shareholders who are on the register on 7 October 2011. The
dividend will be payable on 21 October 2011. This is part of a
longer term progressive dividend policy.
Income Statement
Revenue for the financial year was up 45% to GBP21.764m (2010:
GBP15.031m), driven predominantly by improvements in the energy and
transportation sectors.
Gross margins were maintained at 32% despite lower aerospace
margins. However, the Group continued to focus on controlling its
administration costs, and was able to further reduce operational
gearing to 22%. This resulted in operating profit* being up 282% to
GBP1.198m (2010: GBP0.425m), and operating profit margins* 95%
higher than 2010. After deducting intangible asset amortisation,
share based payment charges and charges relating to foreign
exchange derivative contracts, operating profit was up 334% to
GBP1.026m (2010: GBP0.307m).
Finance charges for the year were GBP0.099m (2010: GBP0.129m),
although this included a credit relating to the interest rate swap
valuation of GBP33k (2010: GBP8k). Despite the Group's lower level
of net borrowings during the year, finance charges, excluding the
interest rate swap valuation credit, were in line with last year at
GBP0.132m (2010: GBP0.137m). This is a function of the interest
rate cap and collar arrangement that the Group has in place over
its borrowings.
The resultant unadjusted profit before tax was up 521% to
GBP0.927m (2010: GBP0.178m). Basic EPS was up 4.8 times at 2.14p
(2010: 0.45p) and, after adjusting for one-off costs, EPS was up
3.2 times at 2.57p (2010: 0.79p).
Cash Flow
The Group's net cash flow from operating activities in the year
was GBP0.968m (2010: GBP1.413m). This represents a solid profit to
cash conversion.
Full year capital expenditure of GBP0.187m (2010: GBP0.135m) is
lower than anticipated due to the timing of contract placements on
major investments. However, at 31 March 2011, the Group had capital
commitments in place of GBP0.524m for delivery during 2011/12.
The Group continued to pay down its borrowings, with net debt
reduced by 93% to GBP0.061m, and increase its cash and cash
equivalents during the year by 24% to GBP1.612m (2010:
GBP1.296m).
Balance Sheet
Net working capital was in line with the half year result at
GBP3.891m (2010: GBP3.586m). The increase over last year was driven
predominantly by an increase in trade debtors, due to the increased
trading volumes. However, the Group managed to maintain the lower
inventory levels achieved last year against significantly higher
volumes.
The Group's net debt at the year end was significantly reduced
by GBP0.780m to GBP0.061m (2010: 0.841m). Gearing, measured as
total debt to equity, at the year end stood at 1%, compared to 18%
in 2010.
The Group continues to hold 875,000 of its ordinary shares in
Treasury. These shares were purchased in March 2010 at a price of
5.5p per ordinary share.
People
We are deeply grateful for the energy, passion and skills of our
people and we continue to invest in their development.
Following the launch of our Energise programme last year, around
two thirds of our employees attended, or are attending, our
training programmes that see participants attain a National
Vocational Qualification in Business Improvement Techniques. This
is proving a firm foundation for further operational
improvement.
Nick Silverthorne, Group Technical Director, left the Board at
the end of May and we would like to acknowledge his contribution to
the business over very many years. He will continue to support the
Group on a part time basis in a consultancy capacity.
We are also delighted to welcome David Leakey to the Board as
Group Sales Director. David, who joins us from IMI plc, has
extensive experience in OEM account development and will play a key
role in the execution of the Group's organic growth plans.
Outlook
We have been encouraged by the progress made in the year with
the Group benefitting from its exposure to global markets,
increased account penetration and continued focus on operational
improvement. We accelerated our investment plans through the second
half of the year and this higher level of investment will continue
through the current year as we look to capitalise on the
opportunities we are identifying. Alongside our drive for organic
growth, the Group continues to consider potential acquisition
opportunities.
Nick Paul CBE Mike Welburn
Chairman Chief Executive
Group statement of comprehensive income
For year ended 31 March 2011
All of the activities of the Group are classed as
continuing.
Note 2011 2010
GBP'000 GBP'000
Revenue 4 21,764 15,031
Cost of sales (14,845) (10,193)
-------- --------
Gross profit 6,919 4,838
Distribution costs (925) (676)
Administration costs (4,796) (3,737)
Operating profit before intangible amortisation,
fair value adjustments for foreign exchange
contracts and share based charge 4 1,198 425
Intangible asset amortisation (117) (118)
Share based payment charge (44) -
Fair value charge relating to foreign exchange
contracts (11) -
Operating profit 4 1,026 307
-------- --------
Finance income 5 3
Finance costs (104) (132)
Profit before tax 927 178
Income tax expense (240) (29)
Profit for the year and total comprehensive income 687 149
======== ========
Attributable to:
Equity holders of the parent company 687 149
======== ========
Earnings per share:
Basic earnings per share 5 2.14p 0.45p
Diluted earnings per share 5 2.12p 0.45p
Group statement of changes in equity
For year ended 31 March 2011
Share
based Investment Profit
Share Share Merger payment in own and loss
capital premium reserve reserve shares account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
April 2009 3,302 1,448 1,388 193 - (1,653) 4,678
Transactions
with owners - - - - (49) - (49)
Comprehensive
income - - - - - 149 149
------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- -----------------------
Balance at 31
March 2010 3,302 1,448 1,388 193 (49) (1,504) 4,778
Issue of new
shares 2 - - - - - 2
Share based
payment
charge - - - 44 - - 44
------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- -----------------------
Total
transactions
with owners 2 - - 44 - - 46
Comprehensive
income - - - - - 687 687
------------------------- ------------------------- ------------------------- ------------------------- ------------------------- ------------------------- -----------------------
Balance at 31
March 2011 3,304 1,448 1,388 237 (49) (817) 5,511
========================= ========================= ========================= ========================= ========================= ========================= =====================
Group statement of financial position
At 31 March 2011
2011 2010
GBP'000 GBP'000
Assets
Non current
Goodwill 591 591
Intangible assets 676 793
Property, plant and equipment 1,040 1,126
-------------- --------------
2,307 2,510
Current
Inventories 3,087 3,107
Trade and other receivables 5,016 3,839
Cash and cash equivalents 1,612 1,296
-------------- --------------
9,715 8,242
Total assets 12,022 10,752
============== ==============
Liabilities
Current
Trade and other payables (4,212) (3,360)
Financial liabilities at fair value through
profit or loss (82) (104)
Borrowings (1,578) (1,734)
Corporation tax (312) (88)
-------------- --------------
(6,184) (5,286)
Non-current
Borrowings (95) (403)
Deferred tax (232) (285)
-------------- --------------
(327) (688)
Total liabilities (6,511) (5,974)
Net assets 5,511 4,778
============== ==============
Equity
Share capital 3,304 3,302
Share premium account 1,448 1,448
Merger reserve 1,388 1,388
Share based payment reserve 237 193
Investment in own shares (49) (49)
Profit and loss account (817) (1,504)
-------------- --------------
Total equity 5,511 4,778
============== ==============
Group statement of cash flows
For year ended 31 March 2011
2011 2010
GBP'000 GBP'000
Cash flows from operating activities
Profit after taxation 687 149
Adjustment for:
Depreciation 326 392
Net finance costs in statement of comprehensive
income 99 129
Amortisation charge 117 118
Share based payment charge 44 -
Charge relating to foreign exchange derivative
contracts 11 -
Taxation expense recognised in statement
of comprehensive income 240 29
Increase in trade and other receivables (1,169) (170)
Increase in trade payables and other payables 799 463
Decrease in inventories 20 710
--------- ---------
Cash generated from operations 1,174 1,820
Interest paid (137) (140)
Income taxes paid (69) (267)
Net cash from operating activities 968 1,413
========= =========
Cash flows from investing activities
Purchase of own shares - (49)
Purchase of plant and equipment (187) (135)
Interest received 5 3
Net cash used in investing activities (182) (181)
========= =========
Cash flows from financing activities
Issue of ordinary share capital 2 -
Repayment of short term borrowings (119) (232)
Repayment of bank borrowings (300) (300)
Payment of finance lease liabilities (53) (117)
--------- ---------
Net cash used in financing activities (470) (649)
Net increase in cash and cash equivalents 316 583
Cash and cash equivalents at beginning
of year 1,296 713
--------- ---------
Cash and cash equivalents at end of
year 1,612 1,296
========= =========
1 General information
Tricorn Group plc and subsidiaries' (the 'Group') principal
activities comprise high precision tube manipulation, systems
engineering and specialist fittings.
The Group's customer base includes major blue chip companies
with world-wide activities in key market sectors, including
Pipefittings, Power Generation, Aerospace, Off Highway, and
Automotive.
Tricorn Group plc is the Group's ultimate parent Company. It is
incorporated and domiciled in the United Kingdom. The address of
Tricorn Group plc's registered office, which is also its principal
place of business, is Spring Lane, Malvern, Worcestershire, WR14
1DA. Tricorn Group plc's shares are admitted to trading on the
Alternative Investment Market of the London Stock Exchange.
The financial statements for the year ended 31 March 2011
(including the comparative for the year ended 31 March 2010) were
approved by the Board of directors on 3 June 2011. Amendments to
the financial statements are not permitted after they have been
approved.
The financial information set out in this preliminary
announcement does not constitute statutory accounts as defined in
Section 435 of the Companies Act 2006. The group statement of
comprehensive income, the group statement of changes in equity, the
group statement of financial position, the group statement of
changes in equity, the group statement of cash flows and the
associated notes for the year ended 31 March 2011 have been
extracted from the group's financial statements upon which the
auditor's opinion is unqualified and does not include any statement
under Section 498 of the Companies Act 2006. The statutory accounts
for the year ended 31 March 2011 will be delivered to the Registrar
of Companies following the Group's Annual General Meeting.
2 Accounting policies
Basis of preparation
These consolidated financial statements have been prepared under
the required measurement bases specified under International
Financial Reporting Standards (IFRS) and in accordance with
applicable IFRS as adopted by the European Union and IFRS as issued
by the International Accounting Standards Board.
3 Going concern
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Detailed cash
flow forecasts have been prepared which highlight that the Group
has sufficient cash headroom to support its activities. The
forecasts also highlight that the financial covenants included in
the bank loan agreements will be fully complied with. The key
assumptions in these forecasts have been sensitised and no issues
arise which lead to any concern regarding the operations or
financing of the Group. For this reason, the Directors continue to
adopt the going concern basis in preparing the financial
statements.
4 Segmental reporting
The Group operates four main business segments:
-- Energy: manipulated tubular assemblies for use in power
generation, oil and gas and marine sectors.
-- Transportation: ferrous, non-ferrous and nylon material
tubular assemblies for use in off-highway, medical, and other such
applications.
-- Aerospace: specialised rigid pipe assemblies for use the
aerospace sector.
-- Utilities: the pipefittings sector produces innovative
jointing systems for polyethylene pipes, typically within the
utility industry.
The financial information detailed below is frequently reviewed
by the Chief Operating Decision maker.
Year ended 31
March 2011 Energy Transport-ation Aerospace Utilities Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
- from
external
customers 8,792 7,155 4,935 882 - 21,764
- from other
segments - - - - - -
Segment
revenues 8,792 7,155 4,935 882 - 21,764
Operating
profit/(Loss)
pre
amortisation,
foreign
exchange
contracts and
share based
payment
charge 756 604 (283) 112 9 1,198
Intangibles
amortisation - - - - (117) (117)
Share based
payment
charge - - - - (44) (44)
Fair value
charge
relating to
Foreign
exchange
contracts (11) (11)
Operating
profit/(Loss) 756 604 (283) 112 (163) 1,026
Net finance
costs (58) (6) (24) (2) (9) (99)
-------- ---------------- ---------- ---------- ------------ --------
Profit/(Loss)
before tax 698 598 (307) 110 (172) 927
-------- ---------------- ---------- ---------- ------------ --------
Segmental
assets 3,523 2,532 2,628 946 2,393 12,022
Other segment
information:
Capital
expenditure 177 50 13 - - 240
Depreciation 127 126 57 15 1 326
Year ended 31
March 2010 Energy Transport-ation Aerospace Utilities Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
- from
external
customers 4,849 4,671 5,014 497 - 15,031
- from other
segments - - - - - -
Segment
revenues 4,849 4,671 5,014 497 - 15,031
Operating
profit pre
intangible
amortisation 96 52 128 53 96 425
Intangibles
amortisation - - - - (118) (118)
Operating
profit/(Loss) 96 52 128 53 (22) 307
Net finance
costs (46) (16) (22) (2) (43) (129)
-------- ---------------- ---------- ---------- ------------ --------
Profit/(Loss)
before tax 50 36 106 51 (65) 178
-------- ---------------- ---------- ---------- ------------ --------
Segmental
assets 3,304 1,988 3,040 243 2,177 10,752
Other segment
information:
Capital
expenditure 66 45 24 - - 135
Depreciation 151 165 58 17 1 392
The Group's revenue from external customers and its geographic
allocation of total assets may be summarised as follows:
Year ended Year ended
31 March 2011 31 March 2010
Revenue Assets Revenue Assets
GBP'000 GBP'000 GBP'000 GBP'000
United Kingdom 15,733 12,022 10,925 10,752
Europe 3,732 - 3,217 -
Rest of World 2,299 - 889 -
------- ------- ------- -------
21,764 12,022 15,031 10,752
======= ======= ======= =======
5 Earnings per share
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year
The calculation of diluted earnings per share is based on the
basic earnings per share, adjusted to allow for the issue of shares
and the post tax effect of dividends and/or interest, on the
assumed conversion of all dilutive options and other dilutive
potential ordinary shares.
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below.
31 March 2011
Weighted average Earnings per
Profit number of shares share
GBP'000 Number '000 Pence
Basic earnings per share 687 32,146 2.14p
------- ----------------- ------------
Dilutive shares 297
Diluted earnings per share 687 32,443 2.12p
------- ----------------- ------------
31 March 2010
Weighted average Earnings per
Profit number of shares share
GBP'000 Number '000 Pence
Basic earnings per share 149 32,979 0.45p
------- ----------------- ------------
Dilutive shares -
Diluted earnings per share 149 32,979 0.45p
------- ----------------- ------------
The directors consider that the following adjusted earnings per
share calculation is a more appropriate reflection of the Group
performance.
31 March 2011
Weighted average Earnings per
Profit number of shares share
GBP'000 Number '000 Pence
Basic earnings per share 687 32,146 2.14p
-------- ------------------ -------------
Amortisation 117
Interest rate collar gain (33)
Share based payment charge 44
Charge relating to foreign
exchange contracts 11
Adjusted earnings per share 826 32,146 2.57p
-------- ------------------ -------------
Dilutive shares 297
Diluted adjusted earnings
per share 826 32,443 2.54p
-------- ------------------ -------------
31 March 2010
Weighted average Earnings per
Profit number of shares share
GBP'000 Number '000 Pence
Basic earnings per share 149 32,979 0.45p
------- ----------------- ------------
Amortisation 118 - -
Interest rate collar gain (8)
Adjusted earnings per share 259 32,979 0.79p
------- ----------------- ------------
Dilutive shares -
Diluted adjusted earnings per
share 259 32,979 0.79p
------- ----------------- ------------
6 Dividends
As part of a longer term progressive dividend policy, the Board
has recommended the payment of a maiden dividend of 0.1p per
share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BLGDLBGGBGBX
Tricorn (LSE:TCN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Tricorn (LSE:TCN)
Historical Stock Chart
From Jul 2023 to Jul 2024
