Tricorn Group (LON:TCN), the AIM listed engineering group this morning reported that sales had strengthened during the first half of the year and that pre-tax profits were now likely to be slightly ahead of market expectations when it reports its interim results in December. Tricorn – which manufactures specialist tubing and pipework for clients in the energy, transportation, aerospace and utilities sectors – saw sales rise by around 40% in the six months to September 30. Sales in the corresponding period of 2009 topped £6.9m, with pre-tax profits coming in at £0.1m. The news was enough to send shares in the group up by 13.4% to 14.75p.

Tricorn credited the performance to the continued recovery in the energy and transportation sectors. Sales in aerospace and utilities remained broadly in line with the second half of last year, when the group reported that it was seeing a pick up in market demand across both divisions. Operating profit margins have also continued to improve with strong performances in energy and transportation more than offsetting lower margins in the aerospace business.

In 2009, Tricorn was forced to respond to a 32% reduction in year-on-year revenues caused by adverse market conditions by ensuring that capacity was aligned to demand, reducing overhead costs and strengthening the balance sheet. Encouraged by signs of an improvement in conditions in the latter part of the year, the company said it was looking to take advantage of additional business opportunities and was prepared to look at potential acquisitions to boost organic growth.

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here