TCN Tricorn Group Plc

TIDMTCN

RNS Number : 2869N

Tricorn Group PLC

29 January 2021

29 January 2021

Tricorn Group plc

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

Further Post-Period End

and

Q1 Trading Update

Further to its announcements on 16 November 2020, 7 December 2020 and 11 January 2021 ('Further Post-Period End Updates'), Tricorn Group plc (AIM: TCN.L), the AIM listed tube manipulation specialist, provides the following update, including trading in the first quarter of the Company's financial year ending 30 September 2021.

In respect of the inter-company imbalance of approximately GBP1.0m referred to in the Company's announcements released on 16 November 2020 and 7 December 2020, the Group had identified and previously reported, that approximately GBP0.2m of the inter-company imbalance of GBP1.0m, was attributable to foreign exchange movements which relate to, and were identified and recognised in, its audited results for the year ended 31 March 2019. Following an internal review, and as shared with the Group's auditors BDO, approximately GBP0.8m of the imbalance was found to have been built up since 31 March 2019, of which approximately GBP0.1m is attributable to additional foreign exchange movements. The residual balance cannot be justified and will be written off in the Group's financial results for the 18 month period ended 30 September 2020.

Q1 Trading Update

Further to its announcement released on 7 December 2020, the Company announces that demand levels from a number of customers continue to increase providing additional availability in the UK from the Group's invoice discounting facility. Of a total invoice discounting facility of GBP3.0m, as at 28 January 2021, the Group generated funding availability of approximately GBP1.8m (advanced at 90%) and has been fully drawn. Cash balances for the Group as at 28 January 2021 were approximately GBP0.7m.

Additionally, and as previously announced on 11 January 2021, following the stocktakes conducted at both of the Group's UK sites, Malvern and West Bromwich, during December 2020 which produced a modest gain of approximately 2 per cent. of gross inventory, material margins have normalised to expected levels across the first quarter.

The impact of COVID, and shipping delays of imported material continues to put pressure on labour costs and the associated labour productivity. The positive increase in customer demand is a welcome sign that the Company is returning to more normal levels of production where the challenge now is to maximise the opportunity to support the growth of customers' business. An increase in stock will be necessary to minimise delays in the supply chain.

For further information please contact:

Tricorn Group plc www.tricorn.uk.com

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

   Michael Stock, Chief Executive/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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January 29, 2021 02:00 ET (07:00 GMT)

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