Tyman (TYMN), an international supplier of building components to the door and window industry, enjoyed good headline and underlying growth in the first half. That was largely thanks to two acquisitions and housing recoveries in both the US and UK. The operationally geared nature of the business helped underlying pre-tax profit soar 83 per cent to £17.2m, as revenues climbed more than a third.
The $200m (£131m) purchase of Truth Hardware a year ago, which boosted the size of Tyman’s North American operation to about half of group sales, has quickly proved a shrewd move. The US housing market is growing strongly again, with Tyman's like-for-like sales in North America up 5.8 per cent in a market up 5.3 per cent. The UK performed even better, with sales up 11 per cent against a market up by 5.5 per cent.
The weak spot is Europe, where trading “continues to be difficult and quite choppy”, says chief executive Louis Eperjesi. He told us he doesn’t expect to see any improvement until at least 2015, but that emerging markets and Australia should pick up the slack.
If it wasn’t for adverse currency effects, the company probably would have beat expectations, but instead these results were bang in line. For the full year, broker Canaccord Genuity expects adjusted EPS of 17.2p, rising to 20.1p next year (2013: 13.7p).
TYMAN (TYMN) | ||||
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ORD PRICE: | 287p | MARKET VALUE: | £ 487m | |
TOUCH: | 287-289p | 12-MONTH HIGH: | 325p | LOW: 199p |
DIVIDEND YIELD: | 2.3% | PE RATIO: | 96 | |
NET ASSET VALUE: | 169p* | NET DEBT: | 37% |
Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2013 | 124 | -1.4 | 4.9 | 1.5 |
2014 | 167 | 5.0 | 7.3 | 2.0 |
% change | +35 | - | +49 | +33 |
Ex-div: 06 Aug Payment: 05 Sep *Includes intangible assets of £344m, or 203p a share |