TIDMTCN
RNS Number : 3072T
Tricorn Group PLC
05 December 2011
5 December 2011
Interim Results
For the six months ended 30 September 2011
Tricorn Group plc ('Tricorn' or the 'Group'), (TCN.L) the AIM
quoted tube manipulation specialist, today announces its unaudited
interim results for the six months ended 30 September 2011.
Highlights
-- Revenue up 23% to GBP12.420m (2010: GBP10.090m)
-- Operating profit margin* up 24% to 6.3% (2010: 5.1%)
-- PBT* up 61% to GBP0.722m (2010: GBP0.449m)
-- Net cash GBP0.072m (2010: Net debt GBP0.551m)
-- Adjusted earnings per share* up 57% to 1.66p
-- Interim dividend declared of 0.07p per share
Summary
Unaudited smonths Unaudited Audited
six months to six months to Year ended
30 September 30 September 31 March
2011 2010 2011
GBP'000 GBP'000 GBP'000
Revenue 12,420 10,090 21,764
Operating profit* 785 519 1,198
Operating profit margin* 6.3% 5.1% 5.5%
Profit before tax* 722 449 1,066
Profit for the period 510 244 687
Adjusted earnings per share - basic* 1.66p 1.06p 2.57p
Cash & equivalents 2,061 1,314 1,612
Net cash/(debt) 72 (551) (61)
-------------- -----------
* All references to operating profit, operating profit margin,
profit before tax and EPS are before intangible asset amortisation,
share based payment charges, interest rate swap and foreign
exchange derivative valuation.
Commenting on the results, Nick Paul CBE, Chairman of Tricorn
said:
"I am delighted to report a further consecutive period of growth
for Tricorn. The Group continues to benefit from its exposure to
world markets, its key account management, ongoing investment and
improving operational performance.
We remain resolutely focused on delivering excellence to our
customers and we are seeing this rewarded with closer and more
collaborative relationships.
Based on the progress made and our confidence in future
prospects, the Board is pleased to declare an interim dividend as
part of its longer term progressive dividend policy.
We remain confident of meeting market expectations for the
year."
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 is a value added manufacturer and specialist manipulator
of pipe and tubing assemblies to niche markets worldwide in the
Energy & Utilities, Transportation and Aerospace sectors.
Headquartered in Malvern, UK, Tricorn employs around 300
employees and operates through four brands: MTC; Redman Fittings;
Maxpower; and RMDG Aerospace.
Chairman's and Chief Executive's statement
Performance in the six months ended 30 September 2011
We are pleased to report a further consecutive period of growth
with the Group continuing to benefit from its exposure to world
markets, its key account management, ongoing investment and
improving operational performance.
Revenue is up 23% to GBP12.420m, operating profit margin is up
24% to 6.3% and PBT* is up 61% to GBP0.722m when compared to the
corresponding period last year. Whilst the Transportation and
Energy divisions remain the principal drivers for revenue growth,
all divisions have increased revenue compared to both the first and
second half of last year. The Energy & Utilities segments have
now been combined to more accurately reflect the operational
management and internal reporting of these divisions.
Operating profit margins* continue to improve with our focus on
the Aerospace division yielding the most significant
progression.
On 30 September 2011 the Group gave notice to its bankers of the
intention to repay, in full, its term loan which was not due to be
fully repaid until August 2012. As a result, on 20 October 2011 the
Group completed the full repayment of its term loan facility.
Based on the progress made and our confidence in future
prospects, the Board is declaring an interim dividend of 0.07p as
part of its longer term progressive dividend policy.
Operational Review
The Group operates three main business segments focused on the
Energy & Utilities, Transportation and Aerospace sectors.
We have extended our key account management capabilities,
increased our engineering resources and invested in our facilities
whilst continuing to benefit from the strong global demand being
experienced by our customers.
We remain resolutely focused on delivering excellence to our
customers and we have seen this rewarded with a supplier award for
quality and delivery excellence, renewal of long term contracts and
an expansion of our share of business with our existing
customers.
Energy & Utilities
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 continued to upgrade our facilities with the most
significant investment being in extending our tube bending
capability and capacity. This has already been instrumental in
securing new business. Total new business wins secured in the year
to date are valued in excess of GBP1.5m at mature volume levels.
Revenue is up 24% compared to a year ago.
Redman Fittings holds worldwide patents on a unique method of
joining polyethylene pipes used within the utilities sector. The
focus on soil contamination levels by major utility companies is
having a positive impact on the business and revenue in the first
half was up 61% compared to a year ago.
Overall revenue for the Energy & Utilities division was up
27%.
Transportation
Maxpower Automotive is focused on nylon, rigid and hybrid
tubular products for engines, braking systems and fuel sender
sub-systems. The business received a supplier award for quality and
delivery excellence from one of its major customers earlier in the
year reflecting the operation's ability to deliver consistent
quality and delivery excellence. It has also actively supported its
customers in the launch of the next generation of low emission
engines, securing opportunities for the supply of oil level
indicators as well as fuel, air and oil pipe assemblies. Revenue
increased 32% compared to the corresponding period last year.
Aerospace
RMDG Aerospace supplies rigid pipe assemblies used in a variety
of applications within the aerospace sector. We have made good
progress in addressing the operational issues previously
highlighted, secured new business and renewed existing contracts
with two of our key customers. Operating margins are significantly
improved at a time when the sector is experiencing strong order
books. Revenue is up 4.5% year on year and the business is well
positioned to increase its overall contribution to the Group's
performance.
Financial Review
The results for the six months to 30 September 2011 represent
the fourth consecutive period of half yearly PBT growth from the
Group. This strong performance saw increases in revenue, adjusted
EPS* and a move to a net cash position at the half year.
In line with our progressive dividend policy the Board has
declared an interim dividend of 0.07p per share to all shareholders
who are on the register on 3 February 2012. The dividend will be
paid on 17 February 2012.
Income Statement
Revenue for the half year was up 23% on the same period last
year at GBP12.420m (2010: GBP10.090m), with all sectors showing top
line growth. This, coupled with an improvement in performance in
the Aerospace segment, helped the Group to improve its gross
margins.
Administration costs at 21.8% as a proportion of turnover are
lower than both the last half and full year. Resultant operating
profit* was up 51% to GBP0.785m (2010: GBP0.519m), and operating
profit margins* were up to 6.3%. After adjusting for intangible
asset amortisation, share based payment charges and credits
relating to foreign exchange derivative contracts, operating profit
was up 72% to GBP0.731m (2010: GBP0.424m).
Net finance charges at the half year were GBP0.046m (2010:
GBP0.073m). This included a credit relating to the interest rate
swap valuation of GBP17k (2010: charge of GBP3k).
The resultant unadjusted profit before tax was up 95% to
GBP0.685m (2010: GBP0.351m). Basic EPS was up 104% at 1.55p (2010:
0.76p) and, after adjusting for one-off costs, EPS was up 57% at
1.66p (2010: 1.06p).
Cash Flow
The Group's net cash flow from operating activities was in line
with the previous half year at GBP0.321m. Although profitability
improved, our net receivables/payables balance increased on higher
volumes. This was as a result of a key customer changing its
payment terms by an average of two weeks, as well as the Group
continuing to source more of its components from China. The impact
of this latter action does improve margins, but it has a short term
cash flow impact as parts are paid for when shipped.
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