The varied state of economies across its geographic spread has presented a challenge for Tyman (TYMN) in recent times. That said, in this half-year statement the building products group was able to report growth across all operating subsidiaries thanks to so-called 'self-help' measures, which included new product launches, price increases and cost reduction. These measures fed through into an 85 basis point improvement in the underlying operating margin to 13.5 per cent. This helped to drive adjusted operating profits up by more than a fifth, while a cash conversion rate just shy of 100 per cent is not to be scoffed at.
The US residential market is in good health, with an increase in home improvement projects helping to push revenue for AmesburyTruth - the North American division - up 6 per cent at constant currencies. Acquisitions are also benefiting the group, with newly consolidated Giesse making its first contribution in this period, while the Bilco acquisition - completed at the start of July - is expected to enhance access to the commercial property market.
The UK home improvements market, however, remains lacklustre and is there is now more uncertainty following last month's referendum outcome. That said, the ERA UK subsidiary showed resilience with operating profits up 11 per cent as the group was able to recoup higher sterling costs for imported components.
Broker Liberum expects pre-tax profits for the December year-end of £55m, giving EPS of 21.8p, up from £44.9m and 19.3p in FY2015.
TYMAN (TYMN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 278p | MARKET VALUE: | £495m | |
| TOUCH: | 280-285p | 12-MONTH HIGH: | 324p | LOW: 221p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 59 | |
| NET ASSET VALUE: | 197p* | NET DEBT: | 41% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 175 | 7.66 | 3.04 | 2.66 |
| 2016 | 201 | 7.78 | 3.13 | 3.00 |
| % change | +15 | +2 | +3 | +13 |
Ex-div: 4 Aug Payment: 1 Sep *Includes intangible assets of £403m, or 227p a share | ||||
