TCN Tricorn Group Plc

TIDMTCN

RNS Number : 3483F

Tricorn Group PLC

16 November 2020

16 November 2020

Tricorn Group plc

("Tricorn", the "Company" or the "Group")

Post-Period End Update

Further to its announcement on 2 April 2020 advising of a change in its Accounting Reference Date from 31 March to 30 September and its announcement on 23 June 2020 of its unaudited interim results for the 6 months ended 31 March 2020, Tricorn Group plc (AIM: TCN.L), the AIM listed tube manipulation specialist, provides the following update.

Following the appointment of Michael Stock as Group Finance Director, who joined the Group on 3 August 2020 and the hiring of a new finance team, an internal review of the performance of the Group was conducted and various matters have come to light in the preparation of the Group's financial statements for the 18 month period ended 30 September 2020. At this stage, a balance sheet exposure risk estimated at approximately GBP3.6m has been identified. The GBP3.6m balance sheet exposure risk excludes an inter-company imbalance of approximately GBP1.0m which is still being investigated.

Approximately GBP1.1m of the exposure risk relates to the Group's US operation. This includes the write-off of capitalised development costs of GBP0.3m following a contract loss since the onset of COVID-19, the write-down of net inventory of GBP0.5m and a more prudent view on debtor recovery of GBP0.3m.

In the UK, adjustments are estimated at a further GBP2.5m. This relates to a stock write-down of GBP0.7m, approximately GBP0.6m relating to an audit of fixed assets combined with a change in accounting policies and GBP0.2m attributable to assumed non-recovery of debtor balances. The balance of approximately GBP1.0m is still under investigation.

The Group continues to work closely with BDO, the Group's new auditors, who were appointed subsequent to its audited Financial Statements for the year ended 31 March 2019. Further announcements will be made as appropriate and/or further information becomes available.

Trading has been extremely challenging over the last 9 months and whilst the outlook still remains uncertain, demand levels from a number of customers is increasing and providing additional availability in the UK from the Group's invoice discounting facility. Of a total invoice discounting facility of GBP3.0m, as at 13 November 2020, the Group generated funding availability of approximately GBP1.8m (advanced at 90%) and has been fully drawn. Cash balances for the Group as at 13 November 2020 were approximately GBP0.7m.

For further information please contact:

Tricorn Group plc www.tricorn.uk.com

Andrew Moss, Chairman Tel +44 (0)7768 306 701

Mike Welburn, Chief Executive Tel +44 (0)7766 252 032

Michael Stock, Group Finance Director Tel +44 (0)7894 784 106

Shore Capital Tel +44 (0)20 7408 4080

Tom Griffiths

David Coaten

Henry Willcocks

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.

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