Tricorn warns on profits amid UK demand slump, US margin pressure
StockMarketWire.com - Tube manipulation specialist Tricorn warned of a fall in first-half profit and a full-year result 'materially below' expectations, amid a UK demand slump and margin pressure owing to the US-China trade war.
Revenue for the six months through September was seen falling by around 7% on-year, which the company said was slightly below expectations.
Pre-tax profit would fall on-year, reflecting the lower demand and short-term margin pressure in the US.
Tricorn said the period had started encouragingly with a new paint facility in the US integrating well and ahead of plan.
Short-term margin pressure, however, was due to a lag between the impact of the increase in tariffs on goods sourced from China and the time taken to negotiate price increases with customers.
In the UK, demand slowed significantly through the second quarter resulting in revenue in the country slipping 12%.
'There is a strong pipeline of opportunities and the board continues to evaluate the impact of new business inload and the extent to which this can offset the impact of weaker underlying market conditions,' the company said.
'However, the board now anticipates that full year results will be materially lower than market expectations.'
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