Profits rose sharply last year at building components supplier Tyman (TYMN), with underlying operating profit up 42 per cent to £46.1m. Much of the improvement reflected strong demand in the US, which is where the group generates around two-thirds of its revenue.
US revenue grew by a third, although dollar weakness translated this into a gain of around 25 per cent in sterling terms. (The dollar rate to sterling has improved markedly in the subsequent period.) The revenue boost was achieved at the same time the group merged its Amesbury and Truth operations into one operation - AmesburyTruth. The group has also embarked on a rationalisation of its production facilities to create four manufacturing centres by 2020. Costs are expected to range from $25m (£16.5m) to $33m over that period. However separate to these, the Amesbury merger with Truth delivered cost savings of around $5.5m last year, and this number is expected to rise to $8m in the coming year.
Tyman has also rebranded its UK operation from Grouphomesafe to ERA. Trading last year saw underlying operating profit up by a third at £13.7m, as ERA continued to gain market share, highlighted by deeper penetration of its original equipment manufacturer customer base.
Analysts at Canaccord Genuity forecast pre-tax profit of £27.9m and EPS of 8.8p in 2015.
| TYMAN (TYMN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 323p | MARKET VALUE: | £547m | |
| TOUCH: | 322.5-323p | 12-MONTH HIGH: | 342p | LOW: 228p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 58 | |
| NET ASSET VALUE: | 182p* | NET DEBT: | 29% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 252 | 1.8 | 1.2 | 2 |
| 2011 | 230 | 1.3 | 6.2 | 3.5 |
| 2012 | 229 | -25.8 | -17.1 | 4.5 |
| 2013 | 298 | 0.79 | 0.6 | 6 |
| 2014 | 351 | 11.9 | 5.6 | 8 |
| % change | +18 | +1399 | +783 | +33 |
Ex-div: 23 Apr Payment: 20 May *Includes intangible assets of £356m, or 210p a share | ||||
