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Tricorn Group plc
Steve Cooper-Chief Executive
Mike Welburn-Sales Director
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Preliminary Results Presentation
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Results Overview-Highlights• Excellent progress on all fronts
• PBT* £616k ( £191k 2005)
• Strong cash generation £852k
• Continued cost reduction
• Further improvement in productivity
• Group well positioned for further expansion
* Excluding goodwill amortisation
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Results Overview
•*Before goodwill amortisation•**Before disposal of operation
Year 06 05
Sales (£k) 6202 6075
Operating Profit (K)
639 264
PBT* (£k) 616 191**
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Strong Cash Generation
£k H1 H2 Total
2006 419 433 852
2005* (81) 237 156
* Excluding loan repayment and proceeds from sale of business
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Business Review• Redman Fittings
– Innovative pipe jointing system
• Issquared– Small team focussed on product
development opportunities within the water sector
• MTC– Tube manipulation specialist with blue chip
OEM customer base.
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• Redman– Moved to profit in H2– Focus on OEM’s complete– AMP 3 to AMP4 resulted in softer market-now
recovering
• Issquared– Development contract complete
Above businesses combined at end of March 2006
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• Largest of the businesses
• Blue chip customer base– Cummins, CAT, Perkins, F G Wilson
• Key end market is power generation – Generator sets– Diesel engines– Radiators
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Sales• Further market share gain
– Existing customers– New customers
• Markets remains strong and stable– China– North America
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Operations
• Further 15 % productivity improvement• China operation working well
– increased scope for resourcing
• Quality further improved-Customer returns halved on previous year (half of a tiny amount!!)
• On time delivery performance maintained
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Outlook• Power generation sector remains strong
and stable
• Further organic growth anticipated
• Additional scope for low cost sourcing
• Lean manufacturing will continue to deliver benefits
• Outlook positive
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Acquisition
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• Exchange of Contracts Robert Morton Holdings 6/6/06– Now RMDG Aerospace
( was Tecalemit Aerospace UK)
• Cash consideration £1.6m• Sales (Dec 05) £4.6m• PBT £4k• Net assets £1.6m• Employees 64
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Products
Manipulated tubular assemblies 1.5-50mmExtensive in house testing capabilities including radiograph
Manipulated tubular assemblies 20mm-250mm
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Applications
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• Aerospace focus– Good growth– Significant barriers to entry
• Blue chip customer base– Rolls Royce, Shorts Bombardier, Nord-Micro,
Eaton Aerospace
Market
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Group Focus
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Outlook• The type of business we understand well
• Growing market
• Scope for productivity improvement
• Material resourcing opportunities
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Acquisition
In summary
Techniques deployed successfully at MTC will be used at RMDG