Hayward Tyler (HAYT) is the sort of company that could do well in the wake of the Brexit vote. The Luton-headquartered company may be one of the smallest engineering groups listed in London, but the vast majority of its trade is conducted outside the UK and the EU. And with most of its revenue repatriated in dollars, and sterling at a multi-decade low, the pump and motor manufacturer has suddenly found itself with immediate pricing advantages over its Japanese or German rivals.
"We can deal with the known knowns," says chief executive Ewan Lloyd-Baker. "What will be more of a challenge is if the next prime minister decides to have a trade war, and tariffs go up." Whatever happens, Hayward Tyler is in a stronger position than it was a year ago thanks to a firmer balance sheet and several sound investments. In particular, the logic of last October's £10.1m acquisition of Peter Brotherhood was underlined by the 20 per cent growth in gross profit in the period, and a recent boost in cross-selling opportunities.
Broker finnCap is forecasting adjusted pre-tax profit of £6.4m and EPS of 8.2p for the 12 months to March 2017, up from £5.1m and 8.1p in the last financial year.
HAYWARD TYLER (HAYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 85p | MARKET VALUE: | £47m | |
| TOUCH: | 83-86p | 12-MONTH HIGH: | 100p | LOW: 70p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 47p | NET DEBT: | 33% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012* | 33.0 | 1.3 | 1.2 | nil |
| 2013† | 40.0 | 1.5 | 0.3 | nil |
| 2014 | 43.0 | 3.8 | 5.0 | 1.25 |
| 2015 | 48.6 | 4.4 | 7.0 | 1.32 |
| 2016 | 61.6 | 3.0 | 4.9 | 1.38 |
| % change | +27 | -31 | -30 | +5 |
Ex-div: 11 Aug Payment: 25 Aug *December year-end figures †15-month period | ||||
