WEST Bromwich-based Tricorn Group is to press ahead with its growth strategy in China as it looks to counteract softening markets in Europe.

In its interim results for the six months ending September 30, the AIM-listed tube manipulation specialist said its performance demonstrated how the group was developing.

Group operating profit margins improved to 7.6% (2011: 6.3%), while pre-tax profit was up 18% to £0.855m (2011: £0.722m).  The improved profitability helped the group to increase its net cash position to £1.130m (2011: £0.072m).

In line with its dividend policy the board has declared an interim dividend of 0.1p per share to shareholders on the register on February 8, 2013.  The dividend will be paid on February 22, 2013. Adjusted earnings per share stood at 2.07p, up 25% (2011: 1.66p).

The firm said its expansion in China was progressing to plan and that capital investment made in 2011 was now helping deliver further improvements.

Despite the softening markets the company said it was developing pipeline of new opportunities.

Nick Paul, Tricorn chairman, said: “We have delivered a strong set of half year results demonstrating continued improvements in operating margins, strong cash generation has led to a considerably strengthened balance sheet and we have made encouraging progress in establishing our manufacturing facility in China. This, alongside the pipeline of opportunities for new business positions us well for further growth.

“In the shorter term, the softening global markets seen through the second quarter look set to continue into the second half.”

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