Building components supplier Tyman (TYMN) spent last year making acquisitions, changing its name (from Lupus Capital) and moving to a main listing. Its trading performance was buoyed by improving conditions in the US and UK, slightly offset by a subdued market in mainland Europe. But headline numbers don't tell the whole story: after adding back exceptional items and amortisation, operating profits jumped by nearly 41 per cent to £32.3m.
The purchase of the Truth hardware business, which makes parts of windows and doors, boosted the size of the North American operation (called Amesbury) by 40 per cent. But turnover was also underpinned by an 18 per cent rise in housing starts, and even on a like-for-like basis, Amesbury lifted operating profits by 25 per cent. That was despite a housing downturn in Canada, where Truth derives a quarter of its earnings.
Turnover in the UK grew by 17 per cent thanks to a full-year contribution from the Fab & Fix brand of window and door handles. Without this, growth was more modest, at 4 per cent. Crucially, however, there are signs that the all-important repair and maintenance market is now starting to experience a steady recovery. Following upgrades, broker Canaccord Genuity expects adjusted pre-tax profits of £41m and EPS of 17.3p (from £28.6m and 13.7p in 2013).
| TYMAN (TYMN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 274p | MARKET VALUE: | £464m | |
| TOUCH: | 273-274p | 12-MONTH HIGH: | 274p | LOW: 179p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 457 | |
| NET ASSET VALUE: | 179p* | NET DEBT: | 26% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 242 | -0.6 | 0.3 | nil |
| 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 | 0.8 | 0.6 | 6 |
| % change | +30 | - | - | +33 |
Ex-div: 16 Apr Payment: 21 May *Includes intangible assets of £354m, or 209p a share | ||||
