TRICORN GROUP PLC

TCN
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Tricorn : Trading Update

06/04/2020 | 02:06am

4 June 2020

Tricorn Group plc

('Tricorn' or the 'Group')

Trading Update

Further to its announcement on 2 April 2020 of a change in its year end from 31 March to 30 September, Tricorn Group plc (AIM: TCN.L), the AIM listed tube manipulation specialist, provides the following trading update ahead of the release on 23 June 2020 of its unaudited interim results for the six months ended 31 March 2020.

Whilst the Group's Chinese Joint Venture has continued to operate normally following the reopening of its facility on 15 February 2020, the impact of COVID-19 has, as detailed in the Group's announcement on 20 March 2020, created significant disruption elsewhere within the Group.

Both Tricorn's UK facilities were temporarily closed on 25 March 2020 amidst safety concerns for employees and following serious disruption to supply chains and numerous customer closures. The Group's USA facilities closed a few days later with similar concerns and challenges.

Revenue and EBITDA* for the six months ended 31 March 2020 were significantly impacted and are expected to be respectively approximately 20% and 87% lower than in the six months ended 30 September 2019.

Most of the Group's UK and US employees were furloughed from the end of March, with the remaining key staff focused on ensuring that the Group's facilities were in full compliance with the latest Government guidelines to allow an early and safe restart once supply chains and customer demand were re-established.

The Group's UK and US facilities reopened from 20 April onwards, albeit with reduced staffing levels and employees continuing to work from home wherever possible.

While trading at the Group's UK Malvern facility has returned to pre-COVID-19 levels, the UKWest Bromwich and USA facilities continue to experience significantly lower demand.

The Group has retained the vast majority of its employees whilst its assessment of future customer demand is evaluated and current furlough schemes are utilised.

The UK Job Retention Scheme and the USA furlough scheme have been utilised by the Group and £0.55m has also been obtained through the USA Payroll Protection Program. The Group has also secured an additional £1.0 million of funding through the Coronavirus Business Interruption Loan Scheme facility from its existing bank, HSBC. This loan has a 6-year term with the first year being free of interest and capital repayments and an interest rate thereafter of 3.99% over base. Combined with the other measures taken, this provides the Group, as of 1 June 2020, with cash headroom of £1.8 million.

The Board continues to focus on the safety of the Group's employees, supporting its customers, to whom it is continuing to stay close, and mitigating the impact of the lower revenues on the Group's profitability.

Tricorn will provide a further update in its interim results announcement on 23 June 2020.

*All references to EBITDA are before intangible asset amortisation, share based payment charges and Rabun Gap start up costs

For further information please contact:

Tricorn Group plc

Mike Welburn, Chief Executive

Tel +44 (0)1684 569956

Phil Lee, Group Finance Director

www.tricorn.uk.com

Shore Capital

Tom Griffiths

Henry Willcocks

Tel + 44 (0)20 7408 4080

Notes to Editors:

Tricorn is a value-added manufacturer and specialist manipulator of pipe and tubing assemblies to niche markets worldwide.

Headquartered in Malvern, UK, Tricorn employs around 300 employees and has five manufacturing facilities in China, USA and UK.

Disclaimer

Tricorn Group plc published this content on 04 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 June 2020 06:05:08 UTC

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