Tricorn, facing cash crunch, puts itself up for sale

Wed, 21st Jul 2021

Tube manipulation specialist Tricorn said it had put itself up for sale as it posted another loss and warned of a cash crunch. Pre-tax losses for the six months through March amounted to £44 million, compared to year-on-year losses of £774 million. Tricorn last month also announced a loss for the 18-month period through September 2020. At the time, it said it had experienced a 'breakdown in the control and oversight' of its financial management that had prompted its auditor to disclaim an opinion on its financial results. On Wednesday, Tricorn said it had experienced an extended period of challenging markets and turbulent trading, citing the pandemic. The tough times, it added, were set to continue amid inflation and shipping delays of imported material that were putting pressure on operating costs and margins. Tricorn said that while it was operating within its borrowing facilities, pressure on profits meant they alone wouldn't provide necessary cash to make required investments. A strategic review included considering a potential sale of the company and was supported by largest shareholder Roger Allsop. Arden Partners had been appointed as financial adviser. Story provided by StockMarketWire.com

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