Final Results
August 15 2003 - 3:00AM
UK Regulatory
RNS Number:6980O
Tricorn Group PLC
15 August 2003
Tricorn Group plc
Preliminary results for the year ended 31 March 2003
Tricorn Group plc, the developer, manufacturer and supplier of products for the
environmental engineering markets, reports its Preliminary results for the
year ended 31 March 2003.
Highlights
* Progress of new Chief Executive
* Enhanced Group Focus
* Returned MTC to profitability
* Made encouraging progress with issquared
Commenting on the results, Nick Paul, Chairman, said: "The Board are very
pleased with the progress that the new Chief Executive, Steven Cooper, has made
since his appointment in December 2002."
"The focus and efficiency of the Group has been enhanced by disposal of the
Searchwell survey business and closure of the Group headquarters"
"By the year end MTC had been returned to profitability by adopting lean
manufacturing techniques, streamlining overheads and developing lower cost
material suppliers"
"Issquared has successfully launched PipeHorizon, a pipeline integrity
management software package for the oil and gas industry with significant
worldwide potential."
For further information, please contact:
Tricorn Group plc Tel: +44 (0) 1684 569956
Steven Cooper, Chief Executive
Email: corporate @tricorn.uk.com
STATEMENT ACCOMPANYING THE RESULTS FOR THE
YEAR ENDED 31ST MARCH 2003
The year ended 31st March 2003 has marked a significant reshaping of the Tricorn
Group against a difficult economic environment. Costs throughout the Group have
been attacked with considerable success by the newly appointed senior management
team who also took the decision to dispose of the small Searchwell survey
business. Good progress has been made in improving the operational efficiency of
Malvern Tubular Components ("MTC") and bringing the new Redman fitting to
market. Issquared's pipeline integrity management software (PipeHorizon) has
been well received with two systems already sold and discussions underway with a
significant number of potential customers.
The trading performance of the Group for the 12 months ending 31 March 2003
shows turnover of #4.3m (2002: #4.9m) with a net loss of #1,499,000 (2002 loss:
#590,000), representing a loss per share of 5.52p (2002 loss per share: 2.67p)
MTC, the tube manipulation specialist, experienced a sharp drop in orders as the
global engineering cycle weakened. The overhead base of the company was adjusted
accordingly and the introduction of lean manufacturing techniques enabled a
significant increase in productivity to be obtained by the year-end. Further
improvements are planned for the current year. In addition the transfer of
component purchases to low cost countries yielded significant savings in
material costs. As a result of these changes MTC returned to profit by the end
of the year and this trend is expected to continue.
Redman Fittings are now making deliveries of barrier pipe fittings to two large
multinational organisations. Redman also secured a major OEM customer who has
adopted the Redman fitting as the standard product within its own assemblies.
The new range of fittings developed for the wider general mechanical fittings
market received approval from WRc (the water industry test body) in January 2003
and has to date been accepted by three major utilities.
The target market for Redman fittings is by its nature extremely conservative
and progress will be made step by step rather than instantly. However, it is
considered that the Redman fitting has a very attractive long term potential and
since the year end the Redman sales activity has been strengthened.
Issquared is responsible for the technologically innovative pipeline inspection
system being developed for a consortium of water companies. This project
suffered from delays and has experienced a significant cost overrun but is now
nearing completion.
Top priority for Issquared is the pipeline integrity management software
(PipeHorizon). New safety legislation in the USA has driven significant activity
in this market and a number of potential applications in USA and the Middle East
are currently under discussion.
Although the general economic environment remains subdued, MTC has been reshaped
to function well in challenging conditions and will be exceptionally well placed
when markets eventually improve.
Progress also continues to be made in expanding both Redman and Issquared and
the Board remain optimistic about the long term potential for the Group.
CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2003
Note 2003 2003 2002
#'000 #'000 #'000
Turnover
Continuing operations 3,881 4,920
Acquisition 435 -
4,316 4,920
Cost of sales (3,091) (3,169)
Gross profit 1,225 1,751
Distribution costs (91) (142)
Administration expenses (2,647) (2,136)
Operating loss
Continuing operations (1,476) (527)
Acquisition (37) -
(1,513) (527)
Net interest payable (92) (111)
Loss on ordinary activities before taxation (1,605) (638)
Taxation 2 106 48
Retained loss on ordinary activities after taxation 4 (1,499) (590)
Loss per ordinary share 3 (5.52p) (2.67p)
There were no recognised gains or losses other than the loss for the
financial year.
CONSOLIDATED SUMMARISED BALANCE SHEET AT 31 MARCH 2003
Note 2003 2002
#'000 #'000
Fixed assets
Intangible assets 683 120
Tangible assets 1,916 2,083
2,599 2,203
Current assets
Stocks 622 845
Debtors 1,208 1,071
Cash in bank and in hand 90 822
1,920 2,738
Creditors:
Amounts falling due within one year (2,265) (1,877)
Net current (liabilities)/assets (345) 861
Total assets less current liabilities 2,254 3,064
Creditors:
Amounts falling due after more than one year (679) (574)
Provisions for liabilities and charges - (57)
1,575 2,433
Capital and reserves
Called up share capital 2,760 2,571
Share premium account 1,380 1,401
Merger reserve 1,388 915
Profit and loss account (3,953) (2,454)
Equity shareholders' funds 4 1,575 2,433
CONSOLIDATED SUMMARISED CASH FLOW STATEMENT
For the year ended 31 March 2003
Note 2003 2002
#'000 #'000
Net cash outflow from operating activities 5 (792) (532)
Returns on investments and servicing of finance
Interest paid (56) (88)
Finance lease interest paid (36) (23)
Net cash outflow from returns on investments and
servicing of finance (92) (111)
Taxation 7 (18)
Capital expenditure
Payments to acquire tangible fixed assets (66) (177)
Proceeds from sale of tangible fixed assets 36 34
Net cash outflow for capital expenditure (30) (143)
Acquisition
Purchase of subsidiary undertaking (56) -
Net cash outflow before financing (963) (804)
Financing
Issue of ordinary share capital - 1,606
Share issue costs (22) (340)
Receipt/(repayment) of loans 217 (39)
Capital element of finance lease rentals (144) (120)
Net cash inflow from financing 51 1,107
(Decrease)/increase in cash 6 (912) 303
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the year ended 31 March 2003
1. Basis of Preparation
The preliminary announcement has been prepared under the historical cost
convention, on bases consistent with the previous year, and in accordance with
applicable accounting standards.
The principal accounting policies of the Group are set out in the Group's 2003
annual report and financial statements.
2. Taxation Credit on Loss On Ordinary Activities
2003 2002
#'000 #'000
Tax credit in respect of research and development expenditure (49) (24)
Adjustment in respect of prior year - (17)
Total current tax (49) (41)
Deferred taxation (57) (7)
(106) (48)
Unrealised tax losses of approximately #2,000,000 remain available to offset
against future taxable trading profits.
3. Loss per share
The loss per share is based on the loss for the financial year divided by the
weighted average number of equity shares ranking for dividend during the year
being 27,140,820 shares (2002: weighted average 22,073,202 shares). The share
options in issue are not anti-dilutive.
4. Reconciliation of movements in shareholders' funds
2003 2002
#'000 #'000
Loss for the year (1,499) (590)
Issue of shares 641 1,267
Net (reduction)/increase in shareholders' funds (858) 677
Shareholders' funds at 31 March 2002 2,433 1,756
Shareholders' funds at 31 March 2003 1,575 2,433
5. Reconciliation of operating loss to net cash outflow
from operating activities
2003 2002
#'000 #'000
Operating loss (1,513) (527)
Depreciation 232 230
Amortisation 44 15
Loss/(profit) on disposal of tangible assets 9 (9)
Provision against fixed asset investment - 145
Decrease/(increase) in stock 266 (94)
Decrease in debtors 122 73
Increase/(decrease) in creditors 48 (365)
Net cash outflow from operating activities (792) (532)
6. Reconciliation of net cash flow to movement in net funds
2003 2002
#'000 #'000
(Decrease)/increase in cash (912) 303
Cash used to repay capital element of finance lease and
hire purchase agreements 145 120
Cash (inflow)/outflow from movement in loans (217) 39
Change in net debt resulting from cashflows (984) 462
New finance leases and hire purchase contracts (33) (215)
Movement in net debt (1,017) 247
Net debt at 1 April 2002 (635) (882)
Net debt at 31 March 2003 (1,652) (635)
7. Publication of Non-statutory Accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.
The summarised balance sheet at 31 March 2003, and the summarised profit and
loss account, summarised cash flow statement and associated notes for the year
then ended have been extracted from the Group's statutory financial statements
upon which the auditors opinion is unqualified and does not include any
statement under Section 237 of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
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