Window and door components manufacturer Tyman (TYMN) saw its like-for-like revenue decline by 17 per cent in the six months to 30 June, to £254m. As Covid-19 lockdowns progressively hit its core markets, like-for-like sales collapsed by 93 per cent in the UK and Ireland in April, before recovering to a 15 per cent shortfall in June.
The drop in revenue translated to overall adjusted operating profit falling by a quarter, to £31.3m. While cost savings measures helped limit the damage, the margin still contracted by 1.6 percentage points to 12.3 per cent. Statutory earnings read more positively thanks to fewer exceptional charges, namely the cost of restructuring its North American business last year.
Conditions have improved in the second half as construction activity picks up – average daily sales in July were 3 per cent ahead of last year, with its largest market, North America, showing 4 per cent growth. The group has cautioned that some of this momentum is likely down to customer restocking and order backlogs.
Excluding lease liabilities, net debt came in at £161m, a 2 per cent improvement from the December year-end and equivalent to 1.8 times adjusted cash profits (Ebitda). Meanwhile, tighter management of working capital and capital expenditure saw net cash generated from operations more than double to £34m. But as it looks to hold onto cash, there’s no interim dividend.
House broker Numis anticipates adjusted pre-tax profit of £51.6m and EPS of 19.5p for the full year, down from £71m and 27.4p in 2019.
| TYMAN (TYMN) | ||||
| ORD PRICE: | 172p | MARKET VALUE: | £ 336m | |
| TOUCH: | 171-173p | 12-MONTH HIGH: | 292p | LOW: 133p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 15 | |
| NET ASSET VALUE: | 230p* | NET DEBT: | 49%** | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 302 | 11.0 | 4.06 | 3.90 |
| 2020 | 254 | 14.7 | 6.36 | nil |
| % change | -16 | +34 | +57 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes £494m in intangible assets or 253p a share, **Includes £60.8m in lease liabilities | ||||
