Tricorn Preliminary ResultsFor Year Ended 31 March 2009

Nick Paul, ChairmanMike Welburn, Chief Executive

Phil Lee, Finance Director

Agenda

• Background• Results Summary• Financial Review• Business Performance• Focus for 2009• Summary

• Nick Paul CBE– Chairman – Appointed 2001– Previously Deputy Chief Executive of IMI– Also Chairman of Advantage West Midlands

• Mike Welburn– Chief Executive– Joined Tricorn April 2003– Appointed Chief Executive November 2007– Previously Director of Global OEM Strategy for IMI’s Fluid Power Division

• Phil Lee– Group Finance Director– Joined Tricorn January 2009– Previously Finance Director of Distributed Generator Systems (Rolls-Royce

Energy Business)

Background-Senior Management

• Blue chip Original Equipment manufacturers– Caterpillar– Rolls-Royce– Cummins– JCB– Shorts Bombardier– Land Rover– GPS– Bearward– Uponor– Eaton Aerospace

Background-Customer Base

Business Backgroundtructure

.

Results Summary

• Results significantly impacted by market down turn in second half.

• The Group has acted decisively to reduce operating costs.

• Improved cash flow from operations.

• Cash and equivalents increased 80% to £713k.

• Gearing and net debt reduced to 16% and £2,064k respectively.

Results Summary£’000 2009 2008 Change

Sales 22,245 20,829 6.8%

Adjusted Operating profit*

1,430 1,661 (13.9)%

Adjusted earningsper share*

3.16p 3.55p (11.0)%

* Before restructuring costs, amortisation, share based charges and fair value adjustments.

Results Summary£’000 2009 2008 Change

Cash flow from operating activities

1,155 999 15.6%

Net debt (2,064) (2,870) 28.1%

Gearing* 16.0% 26.6% 39.8%

EBITDA/interest 9.2x 8.1x 13.5%

* Long term debt to equity

Financial Review

Financial Review-Sales£’000 2009 2008 Change

Sales* 15,600 15,418 1.2%

Acquisition adjustment

6,645 5,411

As Reported 22,245 20,829 6.8%

* excludes any sales from acquisitions not included in prior year

Financial Review-Profit£’000 2009 2008 Change

Operating Profit* 1,430 1,661 (13.9)%

Interest* (216) (257) 15.9%

Finance income 20 10 100.0%

Profit before tax* 1,234 1,414 (12.7)%

* Before restructuring costs, amortisation, share based charges and fair value adjustments.

Financial Review - Profit£’000 2009 2008 Change

EBITDA* 1,809 2,005 (9.8)%

Depreciation (379) (344)

Interest charge* (196) (247)

Profit before tax* 1,234 1,414 (12.7)%

Intangible amortisation (118) (94)

Share based charge - (335)

Swap FV Adj (100) (12)

Restructuring costs (239) -

Profit before tax 777 973 (20.1)%

Taxation (192) (174)

Profit after tax 585 799 (26.8)%

* Before restructuring costs, amortisation, share based charges and fair value adjustments.

Financial Review - Balance Sheet£’000 2009 2008 Change

Goodwill & Intangibles 1,502 1,620

Tangible Fixed Assets 1,382 1,414

Total Fixed Assets 2,884 3,034

Inventory 3,817 3,547 (7.6)%

Trade & other receivables 3,661 5,728

Trade & other payables (2,897) 4,697

Net working capital 4,581 4,578 0.0%

Corporation tax (292) (273)

Deferred tax (319) (364)

Financial liabilities at fair value (112) (12)

Net Debt (2,064) (2,870) 28.1%

Net Assets 4,678 4,093 14.2%

Financial Review - Cash flow£’000 2009 2008

EBITDA 1,809 2,005

Restructuring (239) 0

Working Capital 19 (541)

Operating cash flow 1,589 1,464

Interest (196) (257)

Tax (218) (208)

Capital expenditure (263) (148)

Investing & financing activities

(106) (1,888)

Net cash flow 806 (1,037)

Opening net debt (2,870) (1,833)

Closing net debt (2,064) (2,870)

Financial Review - Facilities£’000 2009 2008

Cash & cash equivalents 713 397

Invoice discounting (1,620) (1,760) Renewal in November 2009

Term Loan (969) (1,263) To be repaid in 2012

Finance leases (188) (244)

Closing net debt (2,064) (2,870)

Banking covenants

Interest cover (EBITA/Interest)

7.3 times 6.7 times Hurdle 2.5 times

Cashflow cover 1.8 times 2.2 times Hurdle 1.1 times

Business Review

Malvern Tubular Components

• Gains in market share

• Significant softening in demand over final quarter

• Productivity being maintained

£’000 2009 2008 Change

Sales 8,428 7,016 20.1%

EBITDA 965 804 20.0%

EBITDA % 11.5 11.4

Redman Fittings

• Relationships with existing blue chip customers remain strong

• New accounts and projects secured

• Low overhead base• Some signs of

increasing demand

£’000 2009 2008 Change

Sales 1,176 2,665 (55.8)%

EBITDA 292 718 (59.3)%

EBITDA % 24.8 26.9

Maxpower Automotive

• Good progress – low cost country

sourcing– Lean manufacture– ERP implementation

• Increasing customer penetration

• Market demand stabilising

£’000 2009 2008 Change

Sales 6,646 5,411 22.8%

EBITDA* 469 313 49.8%

EBITDA %* 7.1 5.8

* Excludes revaluation reducing stock by £98k in 2009

RMDG Aerospace

• Market remains firm• Progress has been

slower than targeted

• Business refocused and restructured to improve margins

• Significant improvements in 2009/2010

£’000 2009 2008 Change

Sales 5,995 5,737 4.5%

EBITDA 181 170 6.5%

EBITDA % 3.0 2.9

Focus for 2009/10

• Capacity Alignment• Cost Reduction• Balance Sheet focus

Focus for 2009/10 - Capacity Alignment

• Headcount reduced• Short time working-managed weekly• Extended shut downs• Productivity stabilised and will further

improve• Skills being retained• Able to respond quickly to upturn

Focus for 2009/10 - Cost Reduction

• Reduced overheads• Back office integration• Shared services• Reduction in pay• Suspension of

bonus/merit and pay awards

• Spend controls

• Run rate at start of year– Indirect headcount -23%– Overheads -28%

Focus for 2009/10 - Balance Sheet

• CAPEX <50% of depreciation

• Working capital reduction programmes at all sites

• Operating cash flow for 3 months to the end of April 2009 £240k

Summary

• Markets remain difficult• Decisive management action• Balance sheet will further improve• Well positioned to take advantage of

upturn

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