Midlands tube manipulation specialist Tricorn Group has issued a profits warning after revealing it expects revenues for the second half of the year to be down by around 15 per cent.
The announcement follows the publication of the company’s interim results early in December 2013, since then the Malvern-based company said it had seen further softening of demand.
Whilst revenue in its aerospace division is expected to be broadly flat there have been a number of contributory factors in the other business segments, the company said.
Its energy division has seen lower demand from its customers as a result of continuing weakness in the mining and, to a lesser extent, power generation sectors.
It said in its transportation division, an encouraging ramp-up in new customer revenues in the second half for its recently acquired US business, has not been sufficient to offset business lost through the latter part of the first half - the result of resourcing decisions made by customers at the time the business went into receivership.
Slightly lower second half revenues from its Ƶ transportation business is expected to be in part compensated for by the growth in product revenues from its China operation.
Tricon said: “Steps have already been taken to restructure the business in response to these lower revenue levels but it is now anticipated that full year profit before tax will be materially below current market expectations.”
It added it would provide a further update on current trading and prospects in April, following the completion of its financial year to March 31.
