A n n u a l R e p o r t a n d A c c o u n t s
2004
Our Business
We develop, manufacture and supply products and services for the
environmental engineering market.
Our Group of Companies
Malvern Tubular Components Limited
Manufactures and supplies metal tubular components, which are
typically used in engines for independent electricity generation.
Issquared Limited
A specialist company focussed on tools for the pipeline integrity
market in oil, gas and water.
Redman Fittings Limited
Markets and supplies the Redman pipe jointing system, which is an
innovative method of joining polyethylene and other industrial plastic
pipes.
Contents
1
2 Chairman’s Statement
4 Directors, Secretary and Advisors
5
Report of the Directors
6 Corporate Governance including Remuneration Report
8
Report of the Independent Auditors
9
Principal Accounting Policies
11 Group Profit and Loss Account
12 Group Balance Sheet
13 Group Cash Flow Statement
14 Company Balance Sheet
15 Notes to the Financial Statements
Tricorn Group plc - Repor t & Accounts 2004
2
Chairman’s Statement
In my report this time last year I indicated that there
MTC the Group’s tube manipulation business saw
had been a significant re-shaping of the Group and that
fluctuating demand throughout the year but ended
costs had been attacked with considerable success.
strongly. As anticipated further productivity
Our interim results confirmed that we were seeing the
improvements were achieved as part of the continuous
benefits of that action and our results to the end of
improvement programme and additional savings were
March 2004 show that trend continuing.
In addition
realised as the transfer of component purchases to
we have significantly strengthened the Group’s financial
low cost countries was extended to more products.
position through the sale and leaseback of the Malvern
MTC sales were 23% higher in 2004 than 2003 and
Tubular Components (MTC) factory and the issue of
reflect a general recovery in the market place and
new shares in March 2004. The combined amount
also some market share gains.
raised from both actions totalled over £1.4 million.
The continuing drive to lean manufacturing at MTC
Redman continues to make good progress in the
and resourcing of components from low cost countries
UK and has also started to appoint sales distributors
brought MTC firmly into profit for the year. Sales of
on the continent of Europe. As reported previously
the new Redman fitting doubled year on year, albeit
the target market for Redman fittings is by its nature
from a low base, and acceptance of the product is
extremely conservative but demand is growing in
growing steadily.
Issquared has had protracted, but as
line with expectations. With the broadening of the
yet inconclusive, negotiations with a number of key
application areas for the product and the identification
customers for its pipeline integrity management
of further potential markets the management remain
software (PipeHorizon).
convinced that the innovative Redman fittings range
has very encouraging potential.
The trading performance for the 12 months ending
31 March 2004 shows a turnover of £5.5 million
The top priority for Issquared remains the pipeline
(2003: £4.3m) up 28% with a much reduced net loss
integrity management software (PipeHorizon).
of £88,000 (2003 loss: £1,499,000) representing a loss
Negotiations with potential USA customers
per share of 0.31p (2003 loss per share: 5.52p).
throughout the year were frustratingly slow but
Tricorn Group plc - Repor t & Accounts 2004
3
the original consortium has expressed interest in
developing a larger pipeline inspection vehicle.
Issquared anticipate a decision later this
calendar year.
Looking to the future, with a strong order book
and ongoing resourcing of materials from low cost
countries, MTC is well positioned to make further
progress. Redman continues to grow in line with
expectations and Issquared has considerable potential
to capitalise on the interest in PipeHorizon. Overall
therefore the Group is well placed to take advantage
of the generally improving economic climate and
the initiatives already underway.
The Group is well placed
to take advantage of the
generally improving economic
climate and the initiatives
already underway.
are expected to reach a crucial stage in the new
financial year. Safety legislation in the USA is
Finally this has been another very demanding year
becoming increasingly onerous and is generating
for all our employees as we strive to improve our
significant interest in PipeHorizon from pipeline
performance. Many thanks to them, our customers,
operators as they look to find cost effective methods
suppliers and shareholders for their continuing support.
for compliance.
At the interim stage we indicated that the project
to develop a new pipeline inspection system for a
Nick Paul
consortium of water companies had been successfully
Chairman
completed and handed over to our customers.
Since then one of the water companies included in
30 June 2004
Tricorn Group plc - Repor t & Accounts 2004
4
Directors, Secretary and Advisors
Company registration number:
1999619
Registered office:
Directors:
Secretary:
Nominated Adviser and Broker:
Bankers:
Solicitors:
Auditors:
Registrars:
Tricorn Group plc - Repor t & Accounts 2004
Spring Lane
Malvern Link
Malvern
Worcestershire
WR14 1DA
Nicholas Campbell Paul (Chairman and Non-Executive Director)
Steven William Cooper (Chief Executive)
Michael Ian Welburn (Director)
Roger Allsop (Non-Executive Director)
Jeffrey Rubins F.C.A.(Non-Executive Director)
Michael Greensmith
Collins Stewart Limited
9th Floor
88 Wood Street
London
EC2V 7QR
National Westminster Bank plc
30 Church Street
Malvern
Worcestershire
WR14 2AD
Halliwell Landau
St James' Court
Brown Street
Manchester
M2 2JF
Orme Dykes & Yates
National Westminster Bank Chambers
The Homend
Ledbury
Herefordshire
HR8 1AB
Grant Thornton
Registered Auditors
Chartered Accountants
Enterprise House
115 Edmund Street
Birmingham
B3 2HJ
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands
B63 3DA
Report of the Directors
5
The Directors present their report together with the audited financial statements for the year ended 31 March 2004.
Principal activity
Tricorn Group plc is the parent company of a group of specialist engineering subsidiaries whose activities incorporate high
precision tube manipulation, systems engineering and specialist fittings.
Business review
A review of the progress of the Group during the year, and its prospects for the future, are included in the Chairman’s Statement.
There was a loss for the year after taxation amounting to £87,533 (2003: £1,498,853). The Directors do not recommend the
payment of a dividend.
Directors
The present membership of the Board is set out below. All served on the Board throughout the year, except for M I Welburn
who was appointed on 10 March 2004.
The interests of the Directors and their families in the shares of the Company as at 1 April 2003 and 31 March 2004 were as
follows:
N C Paul
J Rubins (1,378,000 beneficial, 76,666 non beneficial)
R Allsop (10,520,000 beneficial, 700,000 non beneficial)
S W Cooper
M I Welburn (appointed 10 March 2004)
Details of directors’ share options are provided in the report on corporate governance.
100,000
1,454,666
11,220,000
–
–
Ordinary shares of 10p each
2004
2003
or date of appointment
100,000
1,454,666
11,220,000
–
–
Share capital
The Company issued 3,398,330 ordinary shares of 10p on 8 March 2004, at the par value of 10p per share to be utilised for
working capital.
Substantial shareholdings
Apart from the interests of Directors the only interests in excess of 3% of the issued share capital of the Company, which have
been notified as at 7 June 2004 were as follows:
Gartmore Investment Management Plc
Rock Nominees Limited
Ordinary shares
of 10p each
5,117,692
1,440,150
Percentage
of capital
16.51%
4.65%
Creditor payment policy
It is the Group’s policy that payments to suppliers are made in accordance with those terms and conditions agreed between the
Group companies and their suppliers, provided that all trading terms and conditions have been complied with.
At 31 March 2004 the Group had an average of 62 days (2003: 54 days) purchases outstanding in third party trade creditors.
select suitable accounting policies and then apply them consistently
Directors’ responsibilities for the financial statements
United Kingdom company law requires the Directors to prepare financial statements for each financial year which give a true and
fair view of the state of affairs of the Group and Company and of the profit or loss of the Group for that period.
those financial statements, the Directors are required to:
–
– make judgements and estimates that are reasonable and prudent
–
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained
in the financial statements
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue
in business.
In preparing
–
The Directors are responsible for keeping proper accounting records, for safeguarding the assets of the Group and for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
Auditors
On 1 July 2004 the Grant Thornton partnership will transfer its business to a limited liability partnership, Grant Thornton UK LLP,
and the directors have agreed to extend the audit appointment to Grant Thornton UK LLP with effect from 1 July 2004 in
accordance with Section 26(5) of the Companies Act 1989.
Grant Thornton UK LLP offer themselves for reappointment as auditors in accordance with Section 385 of the Companies Act 1985.
BY ORDER OF THE BOARD
Roger Allsop
Director
30 June 2004
Tricorn Group plc - Repor t & Accounts 2004
6
Corporate Governance
The Group has, since admission to AIM in December 2001, applied principles of corporate governance commensurate with its size.
Directors
The Directors support the concept of an effective Board leading and controlling the Group. The Board is responsible for approving
the Group’s policy and strategy.
Management supply the Board with appropriate and timely information and the Directors are free to seek any further information
they consider necessary. All Directors have access to advice from the Company Secretary and independent professional advice at
the Company’s expense.
It meets on a regular basis and has a schedule of matters specifically reserved to it for decision.
The Board consists of two executive Directors, who hold the key operational positions in the Group and three non-executive
Directors, who bring a breadth of experience and knowledge. This provides a balance whereby the Board’s decision making cannot
be dominated by an individual. The Chairman of the Board is N C Paul and the other non-executive directors are R Allsop and
J Rubins. The Group’s business is run by S W Cooper and M I Welburn with S W Cooper having overall responsibility as the
Chief Executive.
Relations with shareholders
The Group values the views of its shareholders and recognises their interest in the Group’s strategy and performance. The Annual
General Meeting will be used to communicate with private investors and they are encouraged to participate. The Directors will be
available to answer questions. Separate resolutions will be proposed on each issue so that they can be given proper consideration
and there will be a resolution to approve the annual report and accounts.
Internal control
The Board is responsible for maintaining a strong system of internal control to safeguard shareholders’ investment and the Group’s
assets and for reviewing its effectiveness. The system of internal control is designed to provide reasonable, but not absolute,
assurance against material misstatement or loss.
An audit committee has been established comprising the non-executive Directors, chaired by N C Paul, which will meet at least
twice per annum and is responsible for ensuring that the financial performance of the Group is properly monitored and reported
on as well as meeting the auditors and reviewing any reports from the auditors regarding accounts and internal control systems.
The Board has considered the need for an internal audit function but has decided the size of the Group does not justify it at
present. However, it will keep the decision under annual review.
The key features of the Group’s systems of internal control are as follows:
–
–
–
–
the Group is headed by an effective Board, which leads and controls the Group;
there is a clear division of responsibilities in running the Board and running the Group’s business;
the Board includes a balance of executive and non-executive Directors; and
the Board receives and reviews on a timely basis financial and operating information appropriate to be able to discharge
its duties.
Going concern
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing
the financial statements.
International Financial Reporting Standards ("IFRS")
The Board recognises that there is a requirement to prepare its financial statements under IFRS for the financial year ending
31 March 2006. The Board intends to keep this matter under review and monitor its impact in the period to the transition date.
Directors’ remuneration
The Board recognises that Directors’ remuneration is of legitimate concern to the shareholders and is committed to following
current best practice. The Group operates within a competitive environment, performance depends on the individual contributions
of the Directors and employees and it believes in rewarding vision and innovation.
Policy on executive directors’ remuneration
Detail of individual Directors’ remuneration is set out in note 2 to the financial statements. The policy of the Board is to provide
executive remuneration packages designed to attract, motivate and retain Directors of the calibre necessary to maintain the
Group’s position and to reward them for enhancing shareholder value and return.
remuneration to do this, but to avoid paying more than is necessary and reflects the Directors’ responsibilities. A separate
remuneration committee has been established comprising the non-executive Directors and is chaired by N C Paul.
It aims to provide sufficient levels of
Tricorn Group plc - Repor t & Accounts 2004
7
Basic annual salary
The Remuneration Committee reviews each Executive Director’s basic salary annually.
remuneration the Board believes that the Group should offer levels of base pay reflecting individual responsibilities and
commensurate with similar jobs in other business sectors.
In deciding upon appropriate levels of
Annual bonus payments, benefits and pension arrangements
There are no bonus arrangements in place for the Directors.
R Allsop benefits from the provision of private medical insurance.
S W Cooper and M I Welburn benefit from the provision of company cars. M I Welburn benefits from the provision of private
medical insurance and participates in a contributory pension scheme.
N C Paul receives no benefits in kind.
J Rubins receives no benefits in kind.
Notice periods
S W Cooper, M I Welburn and R Allsop have service agreements with the Group which are terminable on not less than 12 months
notice given by either party to the other at any time.
N C Paul and J Rubins have letters of appointment with the Company which are terminable upon 6 months’ written notice being
given by either party.
Share option incentives
The Company has adopted a number of individual unapproved share option agreements to motivate and retain key personnel of
the Group.
At 31 March 2004, the following options were held by the Directors:
Unapproved share options
N C Paul
J Rubins
R Allsop
At beginning
of period
Number
Granted
in period
Number
200,000
100,000
600,000
–
–
–
At end
of period
Number
200,000
100,000
600,000
Exercise
price
£
0.30
0.30
0.20
N C Paul’s and J Rubins’ options are exercisable between 1 January 2002 and 31 December 2009.
R Allsop’s options were granted on 23 June 1998 and are exercisable between 2 and 7 years after that date.
No performance conditions apply to these unapproved share options.
During the year the Board approved the following share options for S W Cooper and M I Welburn, although the options have not
yet been implemented.
S W Cooper’s EMI share options are to be exercisable in tranches. The first option over 500,000 ordinary 10p shares is to be
exercisable before 16 October 2010 at a price of 10p per share. The second option over 250,000 shares is to be exercisable
at their par value of 10p once the mid-market price has been maintained at 20p per share for ten consecutive working days.
The third option over 250,000 shares is to be exercisable at their par value of 10p once the mid-market price has been maintained
at 30p per share for ten consecutive working days. All share disposals are to be limited to one third of the option in any given
year without prior Board approval.
M I Welburn is to have two separate EMI share options. The first option is to be over 500,000 ordinary shares which are exercisable
after 12 months continuous employment and will remain in force for seven years. The second option over 250,000 shares is to be
exercisable at their par value of 10p once the mid-market price has been maintained at 20p per share for ten consecutive working
days. All share disposals will be limited to one third of the option in any given year without prior Board approval.
The market price of the Company’s shares at 31 March 2004 was 10p and the range during the year was 4p to 14p.
Tricorn Group plc - Repor t & Accounts 2004
8
Report of the Independent Auditors
to the members of Tricorn Group plc
We have audited the financial statements of Tricorn Group plc for the year ended 31 March 2004 which comprise the principal
accounting policies, the group profit and loss account, the balance sheets, the group cash flow statement and notes 1 to 27.
These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the company’s members, as a body, in accordance with Section 235 of the Companies Act 1985.
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state
to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or
for the opinions we have formed.
Respective responsibilities of the directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with United Kingdom
law and accounting standards are set out in the Report of the Directors.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United
Kingdom auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in
accordance with the Companies Act 1985. We also report to you if, in our opinion, the Directors’ report is not consistent with
the financial statements, if the Company has not kept proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and transactions with
the Group is not disclosed.
We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial
statements. This other information comprises only the Directors’ report, the Chairman’s statement and the corporate governance
statement. We consider the implications for our report if we become aware of any apparent misstatements or material
inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Basis of opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.
It also includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the financial
statements, and of whether the accounting policies are appropriate to the Group’s circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error.
adequacy of the presentation of information in the financial statements.
In forming our opinion we also evaluated the overall
Opinion
In our opinion the financial statements give a true and fair view of the state of the affairs of the Company and the Group as at
31 March 2004 and of the loss of the Group for the year then ended and have been properly prepared in accordance with the
Companies Act 1985.
GRANT THORNTON
Registered Auditors
Chartered Accountants
Birmingham
30 June 2004
Tricorn Group plc - Repor t & Accounts 2004
Principal Accounting Policies
9
Basis of accounting
The financial statements are prepared under the historical cost convention, using accounting policies consistent with the previous
year, and in accordance with applicable accounting standards.
Turnover
Turnover is the total amount receivable by the Group for goods supplied and services provided, excluding VAT and trade discounts.
Basis of consolidation
The Group financial statements consolidate the financial statements of the Company and all its subsidiaries. Acquisitions of
subsidiaries are dealt with by the acquisition method of accounting. Where subsidiary companies are disposed of during the
period, the profit or loss attributable to shareholders includes the profits or losses to the date of disposal.
The Company is entitled to the merger relief offered by section 131 of the Companies Act 1985 in respect of the consideration
received in excess of the nominal value of equity shares issued in connection with acquisitions.
Goodwill
Positive goodwill arising on consolidation, representing the excess of the fair value of the consideration given over the fair values
of the identifiable net assets acquired, is capitalised and amortised on a straight line basis over its useful economic life which is
It is reviewed for impairment at the end of the first full financial year following the
determined separately for each acquisition.
acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
Purchased goodwill first accounted for in accounting periods ending before 23 December 1998, the implementation date of
Financial Reporting Standard No 10, was eliminated from the financial statements by immediate write-off on acquisition against
reserves. Such goodwill will be charged or credited to the profit and loss account on the subsequent disposal of the business
to which it relates.
Tangible fixed assets
Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost in annual
instalments over the estimated useful lives of the assets. The rate of depreciation is as follows:
Freehold buildings
Plant and machinery
Motor vehicles
–
–
–
2% per annum
10% to 33.3% per annum
20% per annum
Investments
Investments are stated at cost less provision for any impairment write down.
Stocks and work in progress
Stocks and work in progress are stated at the lower of cost and net realisable value. Cost represents materials, direct labour and
appropriate production overheads. Net realisable value is based on estimated selling price less all further costs to completion and
all relevant selling and distribution costs.
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or events that give the Group an obligation to pay
more tax in the future, or a right to pay less tax in the future, have occurred by the balance sheet date. Deferred tax assets are
recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have
been enacted or substantially enacted by the balance sheet date.
Research and development
Research and development expenditure is charged to the profit and loss account as incurred.
Tricorn Group plc - Repor t & Accounts 2004
10
Principal Accounting Policies continued
Pensions cost
The defined contribution retirement benefits to employees are funded by contributions from the Group. Payments are made to
insurance companies. These payments are charged to the profit and loss account as incurred.
Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of
ownership of the asset have passed to the Group, are capitalised in the balance sheet and are depreciated over their useful lives.
The interest element of the rental obligation is charged to the profit and loss account over the period of the lease and represents
a constant proportion of the balance of capital repayments outstanding.
Rentals paid under operating leases are charged to income on a straight line basis over the lease term.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are
taken to the profit and loss account.
Financial instruments
Financial assets are recognised in the balance sheet at the lower of cost and net realisable value. Provision is made for diminution
in value where appropriate.
Interest payable/receivable is accrued and charged/credited to the profit and loss account in the year to which it relates.
Tricorn Group plc - Repor t & Accounts 2004
Group Profit and Loss Account
for the year ended 31 March 2004
Turnover
Cost of sales
Gross profit
Distribution costs
Administrative expenses
Operating loss
Profit on disposal of freehold property
Interest payable and similar charges
Loss on ordinary activities before taxation
Tax on loss on ordinary activities
Retained loss on ordinary activities after taxation
Loss per ordinary share
There were no recognised gains or losses other than the loss for the financial year.
11
Note
2004
£
2003
£
1
5,550,755
4,316,273
(3,090,618)
(3,090,962)
––––––––––
––––––––––
2,460,137
1,225,311
(57,364)
(91,447)
(2,451,159)
(2,646,874)
––––––––––
––––––––––
(48,386)
(1,513,010)
76,050
–
(121,510)
(92,218)
––––––––––
––––––––––
(93,846)
(1,605,228)
6,313
106,375
––––––––––
––––––––––
(87,533)
(1,498,853)
––––––––––
––––––––––
(0.31p)
(5.52p)
––––––––––
––––––––––
4
1
5
18
6
The accompanying accounting policies and notes form an integral part of these financial statements.
Tricorn Group plc - Repor t & Accounts 2004
12
Group Balance Sheet
at 31 March 2004
Fixed assets
Intangible assets
Tangible assets
Current assets
Stocks
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Capital and reserves
Called up share capital
Share premium account
Merger reserve
Profit and loss account
Shareholders’ funds – equity interests
Note
2004
£
2003
£
7
8
10
11
12
13
17
18
18
18
19
607,218
682,971
669,596
––––––––––
1,276,814
––––––––––
671,807
1,318,632
476,829
––––––––––
1,916,239
––––––––––
2,599,210
––––––––––
622,196
1,207,695
90,104
––––––––––
2,467,268
1,919,995
(1,880,955)
––––––––––
586,313
––––––––––
(2,265,434)
––––––––––
(345,439)
––––––––––
1,863,127
2,253,771
(44,658)
––––––––––
1,818,469
––––––––––
3,100,000
1,371,236
1,387,533
(4,040,300)
––––––––––
1,818,469
––––––––––
(679,025)
––––––––––
1,574,746
––––––––––
2,760,167
1,379,813
1,387,533
(3,952,767)
––––––––––
1,574,746
––––––––––
The financial statements were approved by the Board of Directors on 30 June 2004.
R Allsop
Director
M I Welburn
Director
The accompanying accounting policies and notes form an integral part of these financial statements.
Tricorn Group plc - Repor t & Accounts 2004
Group Cash Flow Statement
for the year ended 31 March 2004
Net cash outflow from operating activities
Returns on investments and servicing of finance
Interest paid
Finance lease and hire purchase interest paid
Net cash outflow from returns on investments and servicing of finance
Taxation
Capital expenditure and financial investment
Payments to acquire tangible fixed assets
Receipts from sales of tangible fixed assets
Net cash inflow/(outflow) from capital expenditure and financial investment
Acquisition
Purchase of subsidiary undertaking
Net cash inflow/(outflow) before financing
Financing
Issue of ordinary share capital
Share issue costs
(Repayment)/receipt of loans
Capital element of finance lease rentals
Net cash (outflow)/inflow from financing
Increase/(decrease) in cash
13
Note
20a
2004
£
2003
£
(254,824)
(791,917)
(81,114)
(55,911)
(40,396)
––––––––––
(121,510)
––––––––––
(36,307)
––––––––––
(92,218)
––––––––––
13,558
7,093
(53,753)
(65,733)
1,170,609
––––––––––
1,116,856
––––––––––
36,238
––––––––––
(29,495)
––––––––––
–
––––––––––
(56,037)
––––––––––
754,080
(962,574)
339,833
(8,577)
(384,975)
(129,151)
––––––––––
(182,870)
––––––––––
571,210
––––––––––
–
(21,424)
216,877
(144,391)
––––––––––
51,062
––––––––––
(911,512)
––––––––––
15
20b,20c
The accompanying accounting policies and notes form an integral part of these financial statements.
Tricorn Group plc - Repor t & Accounts 2004
14
Company Balance Sheet
at 31 March 2004
Fixed assets
Tangible assets
Investments
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Capital and reserves
Called up share capital
Share premium account
Merger reserve
Profit and loss account
Shareholders’ funds - equity interests
Note
8
9
2004
£
2003
£
21,306
1,118,329
2,552,024
––––––––––
2,573,330
––––––––––
3,724,270
––––––––––
4,842,599
––––––––––
11
2,102,327
2,686,585
12
13
17
18
18
18
200,000
––––––––––
–
––––––––––
2,302,327
2,686,585
(445,359)
––––––––––
1,856,968
––––––––––
(832,892)
––––––––––
1,853,693
––––––––––
4,430,298
6,696,292
(1,945)
––––––––––
4,428,353
––––––––––
3,100,000
1,371,236
1,592,500
(1,635,383)
––––––––––
4,428,353
––––––––––
(574,975)
––––––––––
6,121,317
––––––––––
2,760,167
1,379,813
1,592,500
388,837
––––––––––
6,121,317
––––––––––
The financial statements were approved by the Board of Directors on 30 June 2004.
R Allsop
Director
M I Welburn
Director
The accompanying accounting policies and notes form an integral part of these financial statements.
Tricorn Group plc - Repor t & Accounts 2004
Notes to the Financial Statements
for the year ended 31 March 2004
1
Turnover and loss on ordinary activities before taxation
The turnover is attributable to the principal activities and is all within the UK.
The loss on ordinary activities before taxation is stated after charging/(crediting):
Auditors’ remuneration – audit services
– tax services
Research and development costs
Depreciation of tangible fixed assets:
Owned assets
Assets held under finance leases and hire purchase contracts
(Profit)/loss on sale of tangible fixed assets
Amortisation of goodwill
Operating lease rentals – land and buildings
– plant and equipment
– motor vehicles
15
2004
£
19,500
10,000
195,872
129,528
69,125
(53,206)
75,753
92,095
3,471
28,433
––––––––––
2003
£
18,000
9,250
245,726
156,873
75,585
9,114
44,560
80,258
1,003
17,411
––––––––––
2
Directors’ emoluments
N C Paul
J Rubins
R Allsop
S W Cooper
M I Welburn+
A M Cowan*
N Silverthorne*
T J Ballard*
Basic
£
15,000
12,436
26,250
60,000
4,315
–
–
–
––––––––––
118,001
––––––––––
2004
Benefits
in kind
£
Pension
£
Total
£
Basic
£
2003
Benefits
in kind
£
Pension
£
Total
£
–
–
1,271
9,934
372
–
–
–
––––––––––
11,577
––––––––––
–
–
–
–
302
–
–
–
––––––––––
302
––––––––––
15,000
12,436
27,521
69,934
4,989
–
–
–
––––––––––
129,880
––––––––––
25,000
12,000
45,000
17,213
–
30,000
21,600
23,350
––––––––––
174,163
––––––––––
–
–
15,198
–
–
10,238
5,671
5,432
––––––––––
36,539
––––––––––
–
–
4,500
–
–
–
1,665
1,500
––––––––––
7,665
––––––––––
25,000
12,000
64,698
17,213
–
40,238
28,936
30,282
––––––––––
218,367
––––––––––
During the year the amount due to R Allsop of £Nil (2003: £45,000) was paid to Malvair Properties Limited for his services as a director.
* Remuneration to the dates of their resignation.
+ Remuneration from the date of his appointment.
3
Staff costs
Wages and salaries
Social security costs
Other pension costs
The average weekly number of employees during the year was made up as follows:
Production
Sales, distribution and administration
2004
£
2,281,991
216,894
47,521
––––––––––
2,546,406
––––––––––
2004
Number
80
38
––––––––––
118
––––––––––
2003
£
2,290,886
194,815
74,262
––––––––––
2,559,963
––––––––––
2003
Number
76
45
––––––––––
121
––––––––––
Tricorn Group plc - Repor t & Accounts 2004
16
Notes to the Financial Statements
continued
4
Interest payable and similar charges
Bank loans and overdrafts
Interest on finance leases and hire purchase contracts
Other interest charges
5
Tax on loss on ordinary activities
(a)
The taxation credit is made up as follows:
Tax credit in respect of research and development expenditure
Adjustment in respect of prior year - research and development tax credit
Total current tax (note 5 b)
Deferred taxation (note 16)
2004
£
58,305
40,396
22,809
––––––––––
121,510
––––––––––
2003
£
11,655
36,307
44,256
––––––––––
92,218
––––––––––
2004
£
(24,771)
18,458
––––––––––
(6,313)
–
––––––––––
(6,313)
––––––––––
2003
£
(49,675)
–
––––––––––
(49,675)
(56,700)
––––––––––
(106,375)
––––––––––
Unrealised tax losses of approximately £1,350,000 (2003: £1,618,000) remain available to offset against future taxable trading profits.
(b)
The tax assessed for the period is lower than the standard rate of corporation tax in the UK (30 per cent). The differences are
explained below:
Loss on ordinary activities before tax
2004
£
2003
£
(93,846)
––––––––––
(1,605,228)
––––––––––
Loss on ordinary activities multiplied by standard rate of corporation tax
in the UK of 30% (2003: 30%)
(28,153)
(481,568)
Effects of:
Expenses not deductible for tax purposes
Depreciation for year in excess of capital allowances
Deferred tax asset not provided for
Credit on research and development
Utilisation of tax losses
Adjustment in respect of prior year
Current tax charge/(credit) for year
Tricorn Group plc - Repor t & Accounts 2004
39,098
53,445
–
(24,771)
(64,390)
18,458
––––––––––
(6,313)
––––––––––
26,724
63,302
391,542
(49,675)
–
–
––––––––––
(49,675)
––––––––––
17
6
Loss per share
The loss per share is based on the loss for the financial year divided by the weighted average number of equity shares ranking for
dividend during the year being 27,815,811 shares (2003: 27,140,820 shares). The share options in issue are not dilutive.
7
Intangible fixed assets
Cost
At 1 April 2003 and 31 March 2004
Amortisation
At 1 April 2003
Provided in the year
At 31 March 2004
Net book amount at 31 March 2004
Net book amount at 31 March 2003
Goodwill
£
757,531
––––––––––
74,560
75,753
––––––––––
150,313
––––––––––
607,218
––––––––––
682,971
––––––––––
Goodwill arising on the acquisitions of Redman Fittings Limited and Integrated Statistical Solutions Limited is being amortised evenly over
the Directors’ estimate of its useful economic life of 10 years.
8
Tangible fixed assets
Group
Cost
At 1 April 2003
Additions
Disposals
At 31 March 2004
Depreciation
At 1 April 2003
Provided in the year
Eliminated on disposals
At 31 March 2004
Net book amount at 31 March 2004
Net book amount at 31 March 2003
Freehold
land and
buildings
£
1,198,571
–
(1,198,571)
––––––––––
–
––––––––––
108,181
16,640
(124,821)
––––––––––
–
––––––––––
–
––––––––––
1,090,390
––––––––––
Plant and
machinery
£
2,539,744
53,913
–
––––––––––
2,593,657
––––––––––
1,835,681
153,381
–
––––––––––
1,989,062
––––––––––
604,595
––––––––––
704,063
––––––––––
Motor
vehicles
£
210,083
15,500
(84,253)
––––––––––
141,330
––––––––––
88,297
28,632
(40,600)
––––––––––
76,329
––––––––––
65,001
––––––––––
121,786
––––––––––
Total
£
3,948,398
69,413
(1,282,824)
––––––––––
2,734,987
––––––––––
2,032,159
198,653
(165,421)
––––––––––
2,065,391
––––––––––
669,596
––––––––––
1,916,239
––––––––––
The net book value of fixed assets includes £320,293 (2003: £412,930) in respect of assets held under finance leases and hire purchase
contracts.
The carrying value of freehold land not depreciated is £Nil (2003: £200,000).
Tricorn Group plc - Repor t & Accounts 2004
18
Notes to the Financial Statements
continued
8
Tangible fixed assets (continued)
Company
Cost
At 1 April 2003
Additions
Disposals
At 31 March 2004
Depreciation
At 1 April 2003
Provided in the year
Eliminated on disposals
At 31 March 2004
Net book amount at 31 March 2004
Net book amount at 31 March 2003
Freehold
land and
buildings
£
1,198,571
–
(1,198,571)
––––––––––
–
––––––––––
108,181
16,640
(124,821)
––––––––––
–
––––––––––
–
––––––––––
1,090,390
––––––––––
Plant and
machinery
£
11,789
778
–
––––––––––
12,567
––––––––––
5,054
2,947
–
––––––––––
8,001
––––––––––
4,566
––––––––––
6,735
––––––––––
Motor
vehicles
£
22,320
–
–
––––––––––
22,320
––––––––––
1,116
4,464
–
––––––––––
5,580
––––––––––
16,740
––––––––––
21,204
––––––––––
Total
£
1,232,680
778
(1,198,571)
––––––––––
34,887
––––––––––
114,351
24,051
(124,821)
––––––––––
13,581
––––––––––
21,306
––––––––––
1,118,329
––––––––––
The net book value of motor vehicles includes £16,740 (2003: £21,204) in respect of vehicles held under hire purchase contracts.
9
Investments
Group
Cost
At 1 April 2003 and 31 March 2004
Amounts written off
At 1 April 2003 and at 31 March 2004
Net book amount at 31 March 2004
Net book amount at 31 March 2003
Unlisted
investments
£
164,500
––––––––––
164,500
––––––––––
–
––––––––––
–
––––––––––
The Directors consider that there has been a permanent diminution in the value of the unlisted investment.
Company
Cost at 1 April 2003 and at 31 March 2004
Amounts written off
At 1 April 2003
Written off during the year
At 31 March 2004
Net book amount at 31 March 2004
Net book amount at 31 March 2003
Tricorn Group plc - Repor t & Accounts 2004
Unlisted
investments
£
Subsidiary
undertakings
£
Total
£
145,000
––––––––––
3,724,270
––––––––––
3,869,270
––––––––––
145,000
–
––––––––––
–
––––––––––
–
––––––––––
–
––––––––––
–
1,172,246
––––––––––
1,172,246
––––––––––
2,552,024
––––––––––
3,724,270
––––––––––
145,000
1,172,246
––––––––––
1,317,246
––––––––––
2,552,024
––––––––––
3,724,270
––––––––––
19
9
Investments (continued)
Details of the investments in which the Group or the Company holds 20% or more of the nominal value of the share capital at
31 March 2004 are as follows:
Subsidiary undertaking
Holding
MTC Holdings Limited
Ordinary shares
Malvern Tubular Components Limited * Ordinary shares
Searchwell Limited
Redman Fittings Limited
Issquared Limited
Ordinary shares
Ordinary shares
Ordinary shares
Integrated Statistical Solutions Limited
Ordinary shares
* held by a subsidiary undertaking
Proportion of
voting rights
and shares held Nature of business
100%
100%
100%
100%
100%
100%
Intermediate holding company
Manufacturer of tubular components
Dormant
Sales and marketing company for specialist pipe fittings
Systems engineering and pipeline project management
Dormant
10
Stocks
Group
Raw materials
Work in progress
Finished goods
11 Debtors
2004
£
284,986
143,373
243,448
––––––––––
671,807
––––––––––
2003
£
251,064
185,139
185,993
––––––––––
622,196
––––––––––
Trade debtors
Taxation recoverable
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
Group
Company
2004
£
1,069,874
76,490
–
28,838
143,430
––––––––––
1,318,632
––––––––––
2003
£
979,591
83,735
–
71,137
73,232
––––––––––
1,207,695
––––––––––
2004
£
–
–
2,058,909
7,515
35,903
––––––––––
2,102,327
––––––––––
2003
£
–
–
2,624,947
52,524
9,114
––––––––––
2,686,585
––––––––––
Included within amounts owed by subsidiary undertakings are amounts due after more than one year of £1,486,929 (2003: £1,532,705).
Tricorn Group plc - Repor t & Accounts 2004
20
Notes to the Financial Statements
continued
12
Creditors: amounts falling due within one year
Bank loans (note 14)
Bank overdrafts
Other loans
Trade creditors
Obligations under finance leases and hire purchase
contracts (note 15)
Amounts owed to subsidiary undertakings
Other taxes and social security
Other creditors
Group
Company
2004
£
–
704,967
240,000
471,280
69,248
–
151,615
243,845
––––––––––
1,880,955
––––––––––
2003
£
50,000
889,452
–
466,107
123,347
–
245,300
491,228
––––––––––
2,265,434
––––––––––
2004
£
–
3,240
240,000
67,735
3,333
103,363
3,510
24,178
––––––––––
445,359
––––––––––
2003
£
50,000
631,925
–
53,277
8,611
–
5,458
83,621
––––––––––
832,892
––––––––––
Bank loans and overdrafts are secured by a fixed and floating charge over the assets of the Group.
£451,715 which is secured upon trade debtors.
Included in bank overdrafts is
Other loans are unsecured and are repayable on demand.
Interest is payable at varying rates between 9 and 12% per annum.
Finance leases are secured on the particular assets to which they relate.
13
Creditors: amounts falling due after more than one year
Bank loans (note 14)
Other loans
Obligations under finance leases and hire purchase
contracts (note 15)
14
Borrowings
Bank loans are repayable as follows:
Within one year
After one and within two years
After two and within five years
After five years
Less included in creditors: amounts falling due
within one year
Group
Company
2004
£
–
–
2003
£
311,274
263,701
2004
£
–
–
2003
£
311,274
263,701
44,658
––––––––––
44,658
––––––––––
104,050
––––––––––
679,025
––––––––––
1,945
––––––––––
1,945
––––––––––
–
––––––––––
574,975
––––––––––
Group
Company
2004
£
–
–
–
–
––––––––––
–
–
––––––––––
–
––––––––––
2003
£
50,000
50,000
150,000
111,274
––––––––––
361,274
(50,000)
––––––––––
311,274
––––––––––
2004
£
–
–
–
–
––––––––––
–
–
––––––––––
–
––––––––––
2003
£
50,000
50,000
150,000
111,274
––––––––––
361,274
(50,000)
––––––––––
311,274
––––––––––
All bank borrowings are secured by way of an unlimited debenture. The bank loans were repaid during the year following the sale of
the freehold property.
Interest rates were charged at 2% above bank base rate.
Tricorn Group plc - Repor t & Accounts 2004
21
15 Obligations under finance leases and hire purchase contracts
The maturity of these amounts is as follows:
Amounts payable:
within one year
within two to five years
Less: finance charges allocated to future periods
Finance leases are analysed as follows:
Current obligations
Non-current obligations
Group
Company
2004
£
84,062
55,158
––––––––––
139,220
(25,314)
––––––––––
113,906
––––––––––
2003
£
134,477
138,960
––––––––––
273,437
(46,040)
––––––––––
227,397
––––––––––
2004
£
3,893
2,274
––––––––––
6,167
(889)
––––––––––
5,278
––––––––––
2003
£
9,000
–
––––––––––
9,000
(389)
––––––––––
8,611
––––––––––
2004
£
69,248
44,658
––––––––––
113,906
––––––––––
Group
Company
2003
£
123,347
104,050
––––––––––
227,397
––––––––––
2004
£
3,333
1,945
––––––––––
5,278
––––––––––
2003
£
8,611
–
––––––––––
8,611
––––––––––
Analysis of changes in finance leases and hire purchase contracts during the current and previous periods:
At 1 April 2003
Inception of new contracts
Capital element of rental payments
At 31 March 2004
Group
Company
2004
£
227,397
15,660
(129,151)
––––––––––
113,906
––––––––––
2003
£
338,533
33,255
(144,391)
––––––––––
227,397
––––––––––
2004
£
8,611
–
(3,333)
––––––––––
5,278
––––––––––
2003
£
2,820
22,320
(16,529)
––––––––––
8,611
––––––––––
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
Tricorn Group plc - Repor t & Accounts 2004
22
Notes to the Financial Statements
continued
16
Provisions for liabilities and charges
Group
At 1 April 2003
Credit for year (note 5)
At 31 March 2004
Deferred taxation
2004
£
2003
£
–
–
––––––––––
–
––––––––––
56,700
(56,700)
––––––––––
–
––––––––––
The amounts of deferred taxation provided and unprovided in the financial statements are:
Accelerated capital allowances
Other timing differences
Less:
Trading losses
Provided
2004
£
9,951
(9,951)
––––––––––
–
–
––––––––––
–
––––––––––
Unprovided
2004
£
–
–
––––––––––
–
(236,216)
––––––––––
(236,216)
––––––––––
Provided
2003
£
175,507
(127,694)
––––––––––
47,813
(47,813)
––––––––––
–
––––––––––
Unprovided
2003
£
–
–
––––––––––
–
(241,610)
––––––––––
(241,610)
––––––––––
17
Share capital
Authorised
60,000,000 (2003: 60,000,000) ordinary shares of 10p each
Allotted, called up and fully paid
31,000,000 (2003: 27,601,670) ordinary shares of 10p each
2004
£
2003
£
6,000,000
––––––––––
6,000,000
––––––––––
3,100,000
––––––––––
2,760,167
––––––––––
The Company issued 3,398,330 ordinary shares of 10p at a nominal value of £339,833 on 8 March 2004, each for a consideration of
10p per share to be utilised for working capital.
The Company has approved, but not yet implemented, a number of unapproved share options to the directors, details of which are
provided in the Corporate Governance Statement.
An EMI share option scheme was implemented on 19 April 2002. Share options over 635,000 shares (remaining after lapses) have been
issued under this scheme which may be exercised in three equal tranches after six months, eighteen months and twenty four months
from the date of the grant. No performance conditions apply to the EMI options. No current directors have been issued with options
under the EMI Share Options Scheme.
Tricorn Group plc - Repor t & Accounts 2004
23
Share
premium
£
1,379,813
(8,577)
–
––––––––––
1,371,236
––––––––––
1,379,813
(8,577)
–
––––––––––
1,371,236
––––––––––
Merger
reserve
£
Profit and
loss account
£
1,387,533
–
–
––––––––––
1,387,533
––––––––––
1,592,500
–
–
––––––––––
1,592,500
––––––––––
(3,952,767)
–
(87,533)
––––––––––
(4,040,300)
––––––––––
388,837
–
(2,024,220)
––––––––––
(1,635,383)
––––––––––
18
Reserves
Group
At 1 April 2003
Share issue costs
Loss for the year
At 31 March 2004
Company
At 1 April 2003
Share issue costs
Loss for the year
At 31 March 2004
The merger reserve arose on the acquisition of Integrated Statistical Solutions Limited, which now trades as Issquared Limited.
19
Reconciliation of movements in shareholders’ funds
Loss for the year
Issue of shares (net of issue costs)
Net increase/(reduction) in shareholders’ funds
Shareholders’ funds at 31 March 2003
Shareholders’ funds at 31 March 2004
2004
£
(87,533)
331,256
––––––––––
243,723
1,574,746
––––––––––
1,818,469
––––––––––
2003
£
(1,498,853)
640,077
––––––––––
(858,776)
2,433,522
––––––––––
1,574,746
––––––––––
Tricorn Group plc - Repor t & Accounts 2004
24
Notes to the Financial Statements
continued
20 Notes to the statement of Group cash flows
(a)
Reconciliation of operating loss to net outflow from operating activities
Operating loss
Depreciation
Amortisation
Loss on sale of tangible fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash outflow from operating activities
(b)
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash
Cash used to repay capital element of finance lease
and hire purchase payments
Cash outflow/(inflow) from movement in loans
New finance leases and hire purchase contracts
Movement in net debt
Net debt at 1 April 2003
Net debt at 31 March 2004
(c)
Analysis of changes in net debt
Cash at bank and in hand
Overdraft
Debt
Finance leases and hire purchase contracts
At
31 March
2003
£
90,104
(889,452)
––––––––––
(799,348)
(624,975)
(227,397)
––––––––––
(1,651,720)
––––––––––
Cash flow
£
386,725
184,485
––––––––––
571,210
384,975
129,151
––––––––––
1,085,336
––––––––––
2004
£
(48,386)
198,653
75,753
22,844
(49,611)
(118,182)
(335,895)
––––––––––
(254,824)
––––––––––
2003
£
(1,513,010)
232,458
44,560
9,114
265,670
121,620
47,671
––––––––––
(791,917)
––––––––––
2004
£
2003
£
571,210
(911,512)
129,151
384,975
––––––––––
1,085,336
(15,660)
––––––––––
1,069,676
(1,651,720)
––––––––––
(582,044)
––––––––––
Non-cash
movements
£
–
–
––––––––––
–
–
(15,660)
––––––––––
(15,660)
––––––––––
144,391
(216,877)
––––––––––
(983,998)
(33,255)
––––––––––
(1,017,253)
(634,467)
––––––––––
(1,651,720)
––––––––––
At
31 March
2004
£
476,829
(704,967)
––––––––––
(228,138)
(240,000)
(113,906)
––––––––––
(582,044)
––––––––––
(d) Major non-cash transactions
During the year the Group entered into finance lease arrangements in respect of assets with a total capital value at the inception
of the lease of £15,660 (2003: £33,255).
Tricorn Group plc - Repor t & Accounts 2004
25
21
Financial instruments
The Group uses financial instruments, comprising cash, short and long term borrowings, finance leases, hire purchase contracts, trade
debtors and trade creditors, that arise directly from its operations. The main purpose of these financial instruments is to raise finance
for the Group’s operations.
The main risks arising from the Group financial instruments are interest rate risk and liquidity risk. The Directors review and agree policies
for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. The fair
value of the Group’s financial instruments are considered equal to the book value.
Short term debtors and creditors
Short term debtors and creditors have been excluded from all the following disclosures, other than the currency risk disclosure.
Interest rate risk
The Group finances its operations through a mixture of bank loans and overdrafts and other loans. The Group principally uses variable
rate finance facilities given the current low level of interest rates in the UK.
The interest rate exposure of the financial liabilities of the Group as at 31 March was:
31 March 2004
31 March 2003
Variable
£
704,967
––––––––––
1,250,726
––––––––––
Fixed
£
353,906
––––––––––
467,397
––––––––––
The weighted average fixed rates on the loans for the year amounted to 9.1%.
Liquidity risk
The Group seeks to manage financial risks, to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash assets
safely and profitably.
Of the overdraft facility of £150,000, £145,000 has not been utilised at 31 March 2004. This is due for renewal by 30 June 2004. Of the
invoice discounting facility of £1,050,000, £598,285 remained unutilised at 31 March 2004. There is no fixed expiry period, but this is kept
under review by the provider.
As per note 27, the Group has an unsecured loan of £190,000 from Malvair Properties Limited.
Currency risk
The Group operates substantially within the United Kingdom and consequently is not significantly exposed to currency risk. The Group
does not hedge any transactions, and foreign exchange differences on retranslation of foreign currency assets and liabilities are taken to
the profit and loss account of the Group.
Tricorn Group plc - Repor t & Accounts 2004
26
Notes to the Financial Statements
continued
22 Operating lease commitments
Annual commitments under non-cancellable operating leases are as follows:
Group
Operating leases which expire:
In one year
In two to five years
After more than five years
Land and buildings
Other
2004
£
2003
£
2004
£
2003
£
31,915
30,000
125,000
––––––––––
186,915
––––––––––
67,883
5,500
–
––––––––––
73,383
––––––––––
1,744
38,459
–
––––––––––
40,203
––––––––––
1,920
16,494
–
––––––––––
18,414
––––––––––
23
Pension commitments
The Group operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become
payable in accordance with the rules of the scheme.
24
Capital commitments
The Group had no capital commitments at 31 March 2004 or 31 March 2003.
25
Contingent liability
The Company has given an unlimited guarantee against the bank borrowings of its subsidiaries. The borrowings of these companies
at 31 March 2004 are included in the consolidated borrowings detailed in notes 12 and 13.
26
Results of the parent company
As permitted by Section 230 of the Companies Act 1985, the profit and loss account of the parent company is not presented as part
of these accounts. The parent company’s loss for the period amounted to £2,024,220 (2003: £342,760).
27
Related party transactions
The Group has a loan of £190,000 (2003: £200,000) from Malvair Properties Limited, a company which R Allsop controls.
Interest
of £16,597 (2003: £7,915) has been accrued during the year and at 31 March 2004 the outstanding balance amounted to £197,427
(2003: £207,915).
Tricorn Group plc - Repor t & Accounts 2004
Shareholders’ Notes
27
Tricorn Group plc - Repor t & Accounts 2004
28
Shareholders’ Notes
Tricorn Group plc - Repor t & Accounts 2004
Tricorn Group plc
Spring Lane
Malvern Link
Malvern
Worcestershire
WR14 1DA
Tel 01684 569956
Fax 01684 892337