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Tricorn Group: challenging market conditions but lots of potential here
Posted 07/10/09
Tricorn Group, the AIM listed tube manipulation specialist, issued a pre-close trading update following completion of its half year to 30th September 2009.
Much as anticipated market conditions have been extremely challenging and sales for the first half are expected to be around 40% down on the previous year (6 months to 30th Sept 2008, sales £12.1m). Despite this, the Group has remained profitable with EBITDA for the period in line with market expectations for the year.
On a positive note the Group continues to operate comfortably within its banking covenants. Management also reports that markets now appear to be stabilising and with destocking nearing completion they are anticipating a modest improvement to sales during the second half.
Interim results for the period ending 30 September 2009 will be announced on 10 December 2009.
Full year results to 31st March 2009 resulted in adjusted (pre-restructuring costs) earnings per share of 3.16p (2008 3.55p) on turnover of £22.2m. Net assets were £4.6m of which £591,000 was Goodwill
For the year ending March 2009 the house broker estimates adjusted earnings per share of 0.5p and year end net debt of approx £1.6m with interest covered by free cash flow approx 4 times.
At current levels Tricorn looks an interesting story supplying into blue chip companies in the Power Generation, Aerospace, Off Highway and Niche Automotive markets. The Executive Board is ex IMI plc and Rolls Royce plc.
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