11th Feb 2014 10:37
LONDON (Alliance News) - Tricorn Group PLC shares dropped to the bottom of the AIM market Tuesday after the firm said revenues for the second-half are expected to come in 15% lower than first-half figures, as demand continues to lighten.
In a trading statement covering the financial year to March 31 2014, the firm said Tuesday that it has seen further softening of demand since releasing its interim results on December 3 2013, causing Tricorn to assess its view for second-half revenue for ongoing business, now revised to come in approximately 15% lower than the first-half of the current financial year.
Tricorn said that while revenue it its Aerospace division is expected to be broadly flat there have been a number of contributory factors to the reduced expectations in the other business segments. Its Energy division has seen lower demand, driven by continuing weakness in the mining and, to a lesser extent, power generation sectors, it said.
The Transportation business has seen an encouraging ramp up in customer orders for the US business for the second-half, said Tricorn, but this has not been sufficient to offset the business lost through the latter part of the first half which was the result of resourcing decisions made by customers at the time the business went into receivership, it said. In the UK, the slightly lower second-half revenues in Transportation is expected to be in part compensated for by the growth in product revenues from the China operation.
The tube manipulation specialist said that it has been taking steps to restructure the business in order to reduce the impact of the lower revenue levels, but said that it anticipates full-year profit before tax will be materially below current market expectations.
Shares in Tricorn Group were trading down 26.83% at 22.5 pence per share, sitting at the bottom of the AIM market Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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