Tricorn profits soar on contract wins and strong Chinese performance

AIM-quoted pipe and tube specialist Tricorn saw profits soar in its last trading year, thanks to a series of contract wins in the transport and energy sectors.

Tricorn's revenues increased 19% to £22.180m, helping give profits a 260% shot in the arm to £827,000 for the year ended 31 March. Earnings per share came in 268% higher at 2.65p.

The Surrey-based group, which manufactures pipe and tubing assemblies to supply markets in the energy and transportation sectors around the globe, reported "excellent progress" across both its transportation and energy divisions, as well as a strong showing from its Chinese joint venture, Minguang-Tricorn Tubular Products, which provided Tricorn with "substantially improved" profits of £209,000, a 326% year-on-year increase.

Early in the financial year, Tricorn secured a long-term agreement with the London Electric Vehicle Company to assist the group with its brake pipe assemblies on the recently launched TX eCity electric taxi. The project is expected to generate around £5m of revenue for Tricorn.

Tricorn held cash and equivalents of $692,000 at year-end, a 7% increase year-on-year, while net debt contracted 14% to £2.98m.

Andrew Moss, Tricorn's chairman, said, "The group has made excellent progress in the execution of its strategy which is delivering revenue growth and a substantial improvement in profitability. Our strong cash generation has enabled us to reduce our net debt whilst continuing to invest in the business."

"These investments in developing our capabilities and increasing our capacity have enabled us to win new business, grow market share and take full advantage of buoyant end markets. With momentum building across the businesses, the board expects the group to make further significant progress in the current year," Moss added.

As of 0900 BST, Tricorn shares had leapt 15.48% to 35.80p.