Tyman (TYMN) delivered a solid set of numbers at the half-year mark. The building components supplier said trading in some markets remained subdued, but new product launches in the UK give cause for encouragement.
All told, the group posted a 14.6 per cent increase in underlying profits to $22.2m, a higher proportion of which is now generated in North America. Margins are on the up, while return-on-capital increased 170 basis points to 11.8 per cent - placing it within sight of the medium-term target of 15 per cent.
The group continues to drive cost synergies at its AmesburyTruth unit, which produces parts for doors and windows, such as locks, handles and seals. The merging of the Amesbury and Truth businesses has already delivered significant costs savings, and there are more on the way.
Trading on the continent remains mixed, with positive performances in Spain and Norway set against declining revenues from the larger French and German operations. Orders at the Schlegel International business were up on last year. Management anticipates that Schlegel International's operating performance will continue to improve through 2015, leading to a break-even result for the year as a whole. Further afield, there were positive sales indicators from Tyman's Australian and South East Asian markets.
Broker CanaccordGenuity anticipates adjusted 2015 EPS of 19.3p, against 18.6p in 2014.
| TYMAN (TYMN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 313p | MARKET VALUE: | £531m | |
| TOUCH: | 313-315p | 12-MONTH HIGH: | 342p | LOW: 228p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 52 | |
| NET ASSET VALUE: | 174p* | NET DEBT: | 35% | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 167 | 5.0 | 1.63 | 2.00 |
| 2015 | 175 | 7.7 | 3.04 | 2.66 |
| % change | +5 | +54 | +87 | +33 |
Ex-div: 6 Aug Payment: 3 Sep *Includes intangible assets of £341m, or 201p a share. | ||||
