tricorn group plc

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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