Tricorn Group (LON:TCN) , the AIM listed tube manipulation specialist that works in the energy, transportation, aerospace and utilities markets worldwide, this morning reported that its sales had increased by 45% to £10.1m in the first six months of the year. The Malvern based engineering group, which operates through the brands MTC, Redman Fittings, Maxpower and RMDG Aerospace, said that pre-tax profits had risen to £0.4m from £0.1m as a result. Tricorn credited the performance to improved conditions in the energy and transportation markets, which also helped it to slash net debt by 34.5% from March 2010 to £0.6m.

Nick Paul CBE, the chairman of Tricorn, said: “We are emerging from the contraction experienced in our key markets as a leaner more resilient business and I am pleased to report an encouraging start to the financial year. Increasing customer confidence has inevitably led to an element of restocking through the first half but we anticipate underlying demand levels to remain firm through the balance of the year. The Board is confident that full year results will be ahead of market expectations.”

Shares in Tricorn rose by 7.5% to 14.5p on the performance. Arbuthnot Securities, the company’s broker, reiterated a “strong buy” recommendation on the stock and upgraded its FY2011 pre-tax profits forecast for a second time. It now believes profits will top £0.75m for the year, up from a previous forecast of £0.65m, on sales of £19.8m, up from £18.8m.

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here