Interim Results Presentation for 6 months ended 30 September 2015 - PowerPoint PPT Presentation

Interim Results Presentation for 6 months ended 30 September 2015

Summary • Group made encouraging progress in the period against a back drop of softening customer demand • Highlights – Increased revenue from USA and China facilities partially offsetting lower demand predominantly in UK Transportation business – Substantially improved operational performance of the USA business – Return to profitability for the Group – New production line to support circa £10m contract win now operational in UK – Improved cash generation from operating activities – Net debt largely unchanged from year end 2

Financial Review-Summary H1 H1 H1 H2 H1 2015/16 2014/15 2014/15 2015/16 v 2015/16 v £’000 £’000 H1 £’000 H2 2014/15 2014/15 10,096 10,630 10,556 Revenue (534) (460) Operating profit* 183 37 146 139 44 38 (70) 15 Profit/(loss) before tax* 108 23 Adjusted EPS/(LPS)- 0.11p (0.21)p (0.29)p 0.32p 0.40p basic* 370 (514) (228) Net cash from operations 884 (598) 730 1,028 694 Cash and equivalents (298) 36 (3,167) (2,963) (3,127) Net debt (204) (40) *All references to operating profit, profit/(loss) before tax and EPS/LPS are before restructuring costs, intangible asset amortisation, share based payment charges and foreign exchange derivative valuation. 3

Financial Review-Profit Bridge 4

Financial Review-Balance Sheet • Net debt £3.167m compared to £2.963m at 30 September 2014 and £3.127m at 31 March 2015. Gearing at 49.5% (2014: 45.4%) • Cash resources available to the Group in excess of £1.2m • The Group operates without any covenants on its facilities • No term debt or long term borrowing • Capital investment of £0.440m in the first half of the year • Includes funding for a new manufacturing cell relating to the contract win announced in December 2014 • Capital expenditure is funded by a mix of short term borrowings and lease finance 5

Financial Review-change in net funds £000’s 30 31 March Operating September Net movement 2015 Net profit (Excl 2015 Tax Finance Restructuring Capital Issue of on working Debt JV) Dep’n receipts charges costs expenditure shares Net Debt capital Net Cash Generated from Operating Activities £370k (3,127) (3,167) 115 (132) (114) 334 (16) 183 (440) 30 Gearing Gearing 48.6% 49.6% 6 6

Business review-introduction • Two business divisions Revenue £10.096m for 6 months • 5 manufacturing ended 30 September 2015 • Operations in the UK, USA and China • Ideally positioned to support OEM customer base in these key regions 36% Transportation • Transportation Energy 64% • End markets: on and off highway including construction, truck and agriculture • Bespoke tubular solutions for engines, hydraulic actuation, transmission lubrication and fuel sender sub systems • Energy • End markets: power generation, oil and gas, mining and marine • Bespoke tubular solutions for large engines, cooling and generator sets 7 7

Business Performance Review Transportation Energy 2015/16 2015/16 H1 H1 £’000 Central Central 2015/16 2014/15 adjustments adjustments Group Group H1 15/16 H1 14/15 H1 15/16 H1 14/15 Revenue 6,484 6,900 3,612 3,730 - 10,096 10,630 PBT (104) (310) 255 281 (113) (41) 38 (70) • USA Transportation – Increased revenue through new business growth – Substantial operational improvements – Profitable for the period • UK – Lower demand – Incurred losses for the period – New production line now operational and provides significant growth opportunity • China – Further revenue growth but rate slowing – Steps initiated to lower operational costs • UK Energy – Roll out of further improvement activities – Productivity/efficiency gains have helped to offset impact of lower revenue – Market share gains within existing customer base 8

Outlook • Group has made further progress – USA business has increased revenue, improved operational performance and now profitable – China businesses delivered further revenue growth – Group profit ahead of previous 6 months and corresponding 6 month period • Markets slowed towards end of the period and further since – Now expect revenue to be 10% lower than the previous year – Reacted quickly and decisively to reduce costs. – Results expected to be below market expectations but anticipate Group will remain profitable at operating profit level for the full year • Board optimistic about longer term growth opportunities and encouraged by recent market share gains – Profitability will benefit further from the lower operational costs as and when markets recover 9

Appendix

Tricorn shareholders Major shareholders:- % R Allsop 33.2% Hargreave Hale 18.2% W B Nominees 4.1% BRI Nominees 4.1% Quilter Nominees 3.0% 11

Board of Directors Andrew Moss Non-Executive Chairman Appointed as Non-Executive Director in November 2014 and Non-Executive Chairman from December 2014. Member of the Audit, Remuneration and Nomination Committee. He has over 30 years' experience in international engineering Groups specialising in aviation, automotive and power electronics products, and advanced composite materials. He spent 13 years with Umeco Plc, five years of which was spent as a main board Director, resulting in his appointment as Chief Executive in 2011. Prior to this he was with BTR/Invensys Plc managing a number of international manufacturing businesses. Mike Welburn - Chief Executive Joined Tricorn in April 2003,appointed to the Board in March 2004 and as Chief Executive in November 2007. He had previously been with IMI plc for 18 years where he had held a number of senior roles within the Fluid Power Division. This included responsibility for European Operations and Global OEM Strategy. Phil Lee - Group Finance Director Joined Tricorn in January 2009 and appointed to the Board in February 2009. He had previously been at Rolls-Royce for 9 years working in a number of roles including Finance Director of Distributed Generation Systems (part of the Rolls-Royce Energy Business). Prior to Rolls-Royce he had been with National Grid Plc. David Leakey - Group Sales Director Joined Tricorn and appointed to the Board in June 2011. He had previously spent 27 years working at Norgren Ltd, the Motion and Fluid Controls division of IMI Plc, most recently held the role of Global Sales Director in the Energy Sector, with responsibility for the global business development of the company’s products into the oil and gas markets. David has also held the position of Sales Director in Norgren’s Life Sciences and Automotive Sectors. Roger Allsop - Non Executive Director Purchased MTC in 1984 and Chief Executive of Tricorn up to 2002 after which he became a non-executive Director. Chairman of the Audit, Remuneration and Nomination Committees. He was previously Managing Director of Westwood Dawes plc and non-executive Director of Netcall plc. 12