Building materials producer Tyman (TYMN) has a history of growing via acquisition, and the past six months have proved to be no exception. Tyman’s US business, AmesburyTruth, bought hardware producer Ashland in March for $101m (£76m) and, since January, the newly acquired business has grown revenues by 10.8 per cent – "significantly ahead" of 2017. The order book is also said to be well ahead of last year. By 2020, management expects to claw back $4m-worth of costs, with the deal expected to be earnings-enhancing this year – 12 months ahead of schedule.
The UK-based ERA division completed its £19m acquisition of Zoo Hardware in May, with sales from that business already 11 per cent up on the prior year. Several new products, including a door closer range, should hit the market in the second half.
At group level, pre-tax profits fell by nearly a fifth due to one-off restructuring costs and adjustments to inventory value. But ignoring this, underlying pre-tax profits rose 6 per cent to £33.3m.
Analysts at Canaccord Genuity expect pre-tax profits of £73m during 2018, giving EPS of 28.3p, compared with £67.4m and 26.9p in 2017.
| TYMAN (TYMN) | ||||
| ORD PRICE: | 339p | MARKET VALUE: | £665m | |
| TOUCH: | 338-340p | 12-MONTH HIGH: | 387p | LOW: 280p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 210p* | NET DEBT: | 53% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 260 | 17.8 | 12.1 | 3.50 |
| 2018 | 275 | 14.5 | 13.1 | 3.75 |
| % change | +6 | -19 | +8 | +7 |
| Ex-div: | 02 Aug | |||
| Payment: | 07 Sep | |||
| *Includes intangible assets of £498m, or 254p a share | ||||
