By its own admission, Tyman (TYMN) posted a mixed financial scorecard for 2018. While cash flow was strong, group profitability was dented by slow markets and operational inefficiencies at the door and window component supplier’s core North American division. The net impact was a slight dip in the return on capital employed to 13.4 per cent, again short of a 15 per cent target.
Still, a 365-day period is sometimes an arbitrary measure of investment returns, as Tyman’s recent acquisition track record shows. Of the five businesses bought between March 2016 and May 2018, only the US-based Bilco has contributed an annualised return on investment below 15 per cent. Door-makers Reguitti and Profab, acquired for a combined enterprise value of €19m (£16.3m) in the second half of 2018, are so far on track to meet or exceed this benchmark.
On average, analysts expect these deals to drive earnings per share to 31.4p in 2019, providing the self-help measures and volume increases forecast in North America also materialise. In the UK and Germany, the focus is on growth in market share, assisted by an expansion in product lines.
| TYMAN (TYMN) | ||||
| ORD PRICE: | 245p | MARKET VALUE: | £480m | |
| TOUCH: | 243.5-245p | 12-MONTH HIGH: | 360p | LOW: 223p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 221p* | NET DEBT: | 48% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 351 | 11.9 | 5.6 | 8.00 |
| 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 |
| % change | +13 | +13 | -22 | +7 |
| Ex-div: | 18 Apr | |||
| Payment: | 24 May | |||
| *Includes intangible assets of £517m, or 263p a share | ||||
