Tube manipulating specialist Tricorn Group Plc (LON:TCN) have reported that their profits were up 49% for the six months through September, though the firm warned that growth in its end markets was slowing.
The AIM-listed company’s profits were up to £0.55 million, while revenue stayed relatively flat at £11.4 million – the group said that their focus to-date in 2018 had been on improving margins.
The firm accredited their success not only to margins, but also noted the “improved profitability” of its Transport Division, and continued success from the “China Joint Venture” – both of which had allowed the company’s earnings per share to climb 52% to 1.52p.
Tricorn Chairman, Andrew Moss, said that the prosperity, “reflects the benefits of an efficient operational base spanning three key geographic regions, a global customer base and new business opportunities across both divisions, which are being implemented. The pipeline of new business opportunities remains encouraging.”
“Over the past two years, we have seen significant growth in our end markets. However, towards the end of the period, we witnessed signs of this growth slowing. Against this background, and after considering the impact of new business wins, the Board anticipates Group revenues in the second half to be similar to the first and full year underlying profit before tax to be in line with
market expectations.”
“The improved profitability of the Transportation division and the further progress of our joint venture in China enabled the Group to deliver a significant improvement in profit before tax which at £0.553m (2017: £0.370m) was 49.5% ahead of the Corresponding Period.”
The firm’s shares are currently trading down 6.62% or 1.49p at 21.01p a share 05/12/18 15:29 GMT.