Shares in Tyman (TYMN) fell 5 per cent after the doors and windows components supplier admitted that profits for the year to December 2017 will be slightly below analysts’ expectations as a result of increased input costs that have yet to be recovered, together with previously reported temporary operational issues in the AmesburyTruth division.
However, trading in the US and mainland Europe remains positive, and Tyman will continue to reduce costs through a number of self-help initiatives. Underlying pre-tax profits will be underpinned by a full year’s contribution from Giesse and Bilco and resulting synergy benefits.
AmesburyTruth, which accounts for around two-thirds of group revenue, experienced higher input costs in the second half of 2017, notably from zinc, paint and oil derivatives, and recovering these increased costs through higher selling prices is unlikely to happen until 2018.