Tyman (TYMN) delivered a workman-like performance in the six months to the end of June 2017, with profits boosted by a combination of recent acquisitions and weak sterling. Turnover jumped by nearly a third, although excluding acquisitions and on a constant currency basis the gain was a more modest 2 per cent. Similarly, underlying profits grew by 29.5 per cent, or 3.9 per cent on a like-for-like basis.
Tyman provides engineered products for the door and window industries, and while sterling’s weakness pushed up input costs, it was offset by price management and cost reduction programmes. In addition to this, there were synergy cost reduction benefits from both the Bilco and Giesse acquisitions, and targeted savings from the latter have been increased by 50 per cent to €6m (£5.37m).
Amesbury Truth, the group’s US operation that contributes around two-thirds of group turnover, delivered relatively flat turnover on a like-for-like basis, with demand for components rather mixed. However, profits were up by a quarter in sterling terms. Trading was tougher in the UK, mainly because around 95 per cent of all business goes into the repair, maintenance improvement (RMI) sector, where consumers sat on their hands because of Brexit. And without the benefit of currency hedges put in place before the referendum, higher import costs are expected to put pressure on UK margins for the full year.
Analysts at Canaccord Genuity are forecasting full-year adjusted pre-tax profits of £71m and EPS of 27.7p for the 2017 year-end (from £62m and 25.4p in 2016).
| TYMAN (TYMN) | ||||
| ORD PRICE: | 363.5p | MARKET VALUE: | £647m | |
| TOUCH: | 363-363.75p | 12-MONTH HIGH: | 369p | LOW: 240p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 203p* | NET DEBT: | 53% | |
| Half-year to | Turnover | Pre-tax | Earnings per | Dividend |
| 30 Jun | (£m) | profit (£m) | share (p) | per share (p) |
| 2016 | 201 | 7.8 | 3.1 | 3 |
| 2017 | 260 | 17.8 | 6.7 | 3.5 |
| % change | +30 | +129 | +112 | +17 |
| Ex-div: | 03 Aug | |||
| Payment: | 07 Sep | |||
| *Includes intangible assets of £451m or 253p a share | ||||
