Tyman’s (TYMN) like-for-like revenue dipped by 2 per cent in 2019, as the group faced customer losses in North America and tighter trading conditions. The window and door component manufacturer is dealing with what chief executive Jo Hallas described as “hangover issues” from its consolidation project.
The group has streamlined its operations in international markets and has already ceased manufacturing in Australia and China, as well as closing its distribution facility in Singapore. Operating profit suffered, falling by 20 per cent to £40.5m.
It has undertaken cost management and right-sizing actions across its divisions, as well as closing a “sub-scale facility” in North America. Operational issues continued at its US Statesville facility, which are certainly a cause for concern, given North America accounts for over two-thirds of revenue. Management also expects growth in American residential repair and remodelling to slow in the second half, as home sales weaken.
However, the group was highly cash generative, with a conversion rate of 132 per cent, which in turn has resulted in a reduction in leverage to 1.72 times adjusted cash profits.
House broker Liberum forecasts adjusted EPS of 27.9p, rising to 29.6p in 2021.
| TYMAN (TYMN) | ||||
| ORD PRICE: | 250p | MARKET VALUE: | £491m | |
| TOUCH: | 248-250p | 12-MONTH HIGH: | 292p | LOW: 188p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 212p* | NET DEBT: | 54%** | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 353 | 15.6 | 4.6 | 8.80 |
| 2016 | 458 | 29.4 | 12.0 | 10.50 |
| 2017 | 523 | 34.5 | 17.6 | 11.25 |
| 2018 | 592 | 38.9 | 13.8 | 12.00 |
| 2019 | 614 | 24.8 | 9.1 | 12.20 |
| % change | +4 | -36 | -34 | +2 |
| Ex-div: | 23 Apr | |||
| Payment: | 29 May | |||
| *Includes intangible assets of £475m, or 242p a share **Includes lease liabilities of £60m | ||||
