Shares in Tyman (TYMN) fell more than 6 per cent to 242p after the door and window components supplier warned that although profits for the year to December 2015 would be up from the previous year, they are likely to be below current market expectations.
The company blamed the underperformance on subdued trading conditions experienced in the first half of the year extending through the summer months. Single family new-build completions were flat in North American markets, although some improvement was noticed in the third quarter. But the repair, maintenance and improvements sector (RMI) in the UK and Ireland continued to contract across the summer, and while new products allowed it to grow its share within the original equipment manufacturer sector, this was more than offset by a decline in its share of the distribution sector.
Trading in the European Schlegel International arm remained challenging, and the group has announced the closure of its manufacturing plant in Barcelona, with closure costs expected to reach €6m (£4.3m). However, its steel reinforcer business has been sold, which will bring in cash of £7.25m.
Analysts at Numis have downgraded their forecasts for the year to December to pre-tax profits of £43.8m and EPS of 18.1p (from £41.6m and 18.4p in 2014).
