Tube manipulation specialist Tricorn Group has reported a 42 per cent fall in half-year sales revenue amid difficult market conditions.
The Malvern-based firm saw sales fall from £12.1 million in the six months to October last year to just £6.9 million this year.
But it also told investors it had cut its net debt by 49.2 per cent to £1.05 million since March 31, with cash up 26.3 per cent to £900,000 and the group is predicting an improvement in conditions in the second half of the year.
Chairman Nick Paul said: “We are pleased to report that markets now appear to have stabilised following very sharp reductions in demand through the first half of the year and we now anticipate modest growth in the second half.
“Our early and decisive actions to align capacity, reduce costs and focus on cash generation have proved to be extremely effective and highlight the resilience of the group which remained profitable for the period.”
Gross profit margins improved per cent to 32.4 per cent over the period, compared with the second half of last year.
The company said its markets had stabilised and it was now seeing some signs of improvement, partly due to destocking activity nearing completion.
As a result, it was anticipating a modest improvement in revenue through the second half and remained on track to meet market expectations for the full year.
Looking ahead, the group said: “Revenues in quarter two were broadly in line with the first quarter for the group as markets stabilised and we are now seeing some signs of improvement partly due to destocking activity nearing completion.
“As a result, we are anticipating a modest improvement in revenues through the second half and the group remains on track to meet market expectations for the full year.”