Tube manipulation firm Tricorn Group has seen plans to grow through acquisition boosted after a focus on clearing debts meant it is now in a net cash position.
Mike Welburn, chief executive of the Malvern-based firm, said the firm was looking for takeover deals to help continue growth, after revealing a 23 per cent revenue rise, to £12.4 million, in the six months to September 30.
Its position has been strengthened after the firm moved into a net cash position of £72,000 across the period, compared to a net debt of £551,000 at this time last year.
The group saw its performance improve across the board in the first half of the year, including its aerospace arm, which had been held back by supply chain constraints last year.
Mr Welburn said: “We want to be in a position to fund things off the balance sheet but it is important that we do what is right for us and at the right time.
“For us there are still some expectations in the marketplace that we think are too high.
“But we see acquisitions in our plan for the future, without doubt.”
Tricorn saw pre-tax profits rise from £449,000 in the first half of last year to £722,000 on the back of growing sales.
The company, which employs around 300 people, is a specialist manipulator of pipe and tubing assemblies to niche markets worldwide in the energy and utilities, transportation and aerospace sectors.
The Post reported about supply chain problems impacting on the firm’s aerospace operations earlier this year, but Mr Welburn said those issues had been ironed out, and revenue was up 4.5 per cent year-on-year.
He said: “We said last year that would be turned around and there has been strong improvement in terms of EBITDA in aerospace.
“We said it would be break even by the end of the financial year but we are about there at the half-way point.
“The general backdrop for aerospace is pretty encouraging. If you look at the next four or five years, all of our big customers are looking at growth.”
Mr Welburn said the recruitment of David Leakey to the board as group sales director earlier this year had already started to pay dividends.
He said: “We are really pleased with the progress we have made and the opportunities going forward.
“David Leakey came on board in June and we have already seen great progresss, and we are stacked up looking forward.
“Our only disappointment is this has not been reflected in our share price.”
Tricorn benefited from growth in South East Asia through many of its blue chip customers, including Rolls-Royce, Caterpillar and JCB.