Pipe maker Tricorn sees softer markets but improving margins
PIPE and tube maker Tricorn’s shares rose 7.35 per cent yesterday after the Aim-listed group posted an 18 per cent rise in pre-tax profits as capital investments start to pay off.
Tricorn, which makes pipe and tubing for engines, aircraft and cars, said revenues fell seven per cent to £11.55m in the six months to the end of September.
Pre-tax profits rose from £722,000 a year ago to £855,000, the firm announced to the market yesterday.
While rising margins helped the firm’s bottom line, it added that demand had been trailing off in some markets, and full-year revenues are set to be 10 per cent lower than indicated in Tricorn’s October trading update.
Full year profits, excluding a new plant in China, are expected to be flat on last year.
The company splashed out on a manufacturing plant in China last year, and hopes to ship its first products from the site by the end of the year.
Chairman Nick Paul cheered the firm’s “continued improvements in operating margins, strong cash generation [and] encouraging progress in establishing our manufacturing facility in China”.
“This, alongside the pipeline of opportunities for new business positions us well for further growth,” he added.