interim results presentation for period ended 30th september 2007
TRANSCRIPT
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Interim Results Presentation for period ended 30th September 2007
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Results Overview-Highlights
• Record results
• Operating profit* up 61.3% to £768k(2006 £476k)
• Strong underlying sales growth
• Significant increase in demand at Redman Fittings
• Good progress at Maxpower Automotive following acquisition in June 2007
• Increasing order book at RMDG Aerospace
• Continue to look for further opportunities to expand
*before intangible asset amortisation, FRS 20 charges and restructuring costs
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Results Summary
H1 H1
2007 2006 Change
£'000 £'000
Sales 8,797 5,000 +75.9%
Operating Profit* 768 476 +61.3%
Profit before Tax* 651 431 +51.0%
Adj EPS* 1.64p 0.95p +72.6%
*before intangible asset amortisation, FRS 20 charges and restructuring costs
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Group Structure
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Tricorn Group Plc-Strategy
• Operational Performance– Continue to drive for world class operational performance within individual
businesses– Develop local management expertise– Intimate customer relationships– Lean manufacture– On time delivery– Quality
• Margin improvement – Overhead streamlining– Year on year productivity improvements– Component and semi finished sourcing from low cost countries
• Growth– Continue to grow through acquisitions and organically– Maintain clear focus on pipe solutions – Increase customer penetration as product portfolio expand and develops– Acquire new customers
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China
• Office now established for over 18 months• Good progress to date• Full time employees
– Increased to 5• Several reliable sub contractors of:-
– Finished product– Semi finished product– Tube– Bellows– End fittings
• Receiving warehouse now established in the UK-use will extend to the other businesses
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Blue Chip OEM Customer Base-Markets
Power Gen
Aerospace
Off High
Niche Auto
Water
Other
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Customers
• Blue chip Original Equipment manufacturers• Caterpillar
– Perkins– F G Wilson
• Rolls-Royce• Cummins• JCB• Shorts Bombardier• Land Rover• Glynwed Pipe Systems• Uponor• Bearward
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Business Review
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• Key end market is power generation – Generator sets– Diesel engines– Radiators
• Steady progress through first half
• Markets remaining firm
• Improving productivity
• Some material cost increases
Malvern Tubular Components
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Innovation
• Revolutionary end fitting system
• World wide patents
• Key end market-water – Longer term opportunity in oil/gas
• Able to join multi-layer pipework
• Strong demand from barrier pipe manufacturers
– Brown field site developments– Potential land contamination– Water quality
• Significant growth through H1
• Outlook encouraging
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• Acquired June 2006
• Focussed on pipe assemblies for the aerospace sector
• Delivery performance improving to world class levels
• Strong order book-existing and new customers
• Transfer of parts to low cost sourcing progressing
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Maxpower
• Acquired June 2007
• Tube manipulation and fabrication
• Off highway, niche Automotive
• Steel, plastic and hybrid tube forming
• Business performing to expectations
• Low cost country sourcing project on track and will deliver significant benefit in 2008/9
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Group Outlook
• Outlook remains very positive
• Key markets remain strong
• Anticipate strong financial performance to continue
• Continue to look for further acquisitions