Tricorn dives as chairman sees growth 'slowing'

Tricorn saw its shares drop on Wednesday as it warned of a slowdown in some end markets despite reporting a “significant increase” in interim profits.

For the six-month period ended 30 September the tube manipulation specialist scored profit before tax of £0.6m, up 49% compared to the same period last year, driven by improved profitability in its transportation division and further progress in its Chinese joint venture.

Andrew Moss, chairman of Tricorn, said: "The group has made good progress over the past six months with a focus on margins which contributed to a significant increase in profit before tax and a 52% increase in earnings per share compared to the first half of last year."

However, revenue remained flat at £11.4m, with improvements stemming from reduction in administrative costs rather than higher sales.

Cash and cash equivalents stood at £0.6m at 30 September, down from £0.9m at the same point last year.

"Over the past two years, we have seen significant growth in our end markets. However, towards the end of the period, we witnessed signs of this growth slowing. Against this background, and after considering the impact of new business wins, the board anticipates group revenues in the second half to be similar to the first," said Moss.

Moss added that full-year underlying profit before tax was expected to be in line with market expectations.

Tricorn’s shares were down 13.33% at 19.50p at 1116 GMT.