4th Dec 2019 10:07
(Alliance News) - Tricorn Group PLC said Wednesday a first-half revenue and profit decline reflects slowing demand in the UK market.
Tricorn shares were 21% down in London at 10.07 pence each on Wednesday.
The tubing manufacturer said for the six months ended September 30, revenue decreased 7.0% to GBP10.6 million from GBP11.4 million in the comparative period a year ago.
The company said demand in the UK slowed "significantly" through the second quarter, resulting in UK revenue being 12% lower on the corresponding period.
"This was principally as a result of weaker market conditions and the impact of some customer destocking," the company said.
Profit before tax for the period fell 47% to GBP280,000 from GBP530,000, with lower distribution and administrative costs helping to partially offset the impact of lower revenue, the company said.
Tricorn said profitability in the period was adversely impacted by lower revenue and in the USA short term pressure on margins due to the impact of increased import tariffs on goods sourced from China.
The company noted demand in the US remained broadly in line with expectations and said it was "pleased" with performance of the new paint plant, which was acquired in May for USD50,000 from Precision Partners LLC.
Andrew Moss, chair of Tricorn, said: "For the balance of the financial year we expect demand to remain low in the UK and to weaken in the US."
"We continue to focus on managing our cost base and working capital to align with these lower volumes whilst capitalizing on the many new business opportunities," Moss said.
By Loreta Juodagalvyte; [email protected]
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