Tricorn warns of tough second half ahead

Shares in Tricorn Group slumped over 9% early on Wednesday, after the pipe manufacturer warned a slowdown in key markets would affect its results in the second half.

The London-listed said conditions in the market weakened towards the end of the six months to September and the deterioration has continued in the second half of its financial year and the company now expects its full year revenue to be down 10% year-on-year.

However, Tricorn indicated it has already implemented cost cutting measures, which should ensure it posts an operating profit for the year, although full year results will miss expectations.

Meanwhile, in the six months to 30 September, the group swung to a £38,000 pre-tax profit compared with a £70,000 loss in the corresponding period in 2014, even though revenue declined 4.72% year-on-year to £10.1m.

The group attributed the profit to an increase in sales in its US and China businesses.

Our USA business has increased revenue through new business growth, continued to improve operationally and was profitable for the period,” said group chairman Andrew Moss.

“In China the businesses have delivered further increases in revenue.”

Moss added that the company remained optimistic about its long-term prospects and expected to benefit from lower costs.

"The board is optimistic about the group's longer term growth opportunities and encouraged by recent market share gains,” he said.

“Profitability will benefit further from the lower operational costs as and when markets recover.”

Tricorn shares were down 9.47% to 12.22p at 1038 GMT on Wednesday.