7 October 2014 – trading update
A slightly disappointing trading update from Tricorn Group has seen the share price fall back although this decline may be overdone in our view. Although revenues on continuing operations for the six months to 30 September are likely to be 6% lower than the same period last year, they will be 8% ahead of the revenues reported in the six months to 31 March and the loss before tax will be reduced from the level seen in the last six month period. The UK businesses are benefitting from some recovery in their markets, Chinese revenues continue to grow and revenue in the US is stabilising. Although this performance is slightly below management expectations the share price has been hit hard and although not without risk we rate the shares a SPECULATIVE BUY.