Disposal of EWS

RNS Number : 2042Y

Tyman PLC

07 September 2015

 

07 September 2015

TYMAN PLC

("Tyman" or the "Group")

Disposal of EWS

Tyman, a leading international supplier of components to the door and window industry, announces that its UK and Ireland Division, ERA, has sold its steel reinforcer business, EWS, to Arc Specialist Engineering Limited ("Arc") for a net cash consideration of approximately £7.25 million (together the "Disposal"). 

The Disposal is in line with Tyman's strategy of focusing on the supply of high value added components to the door and window industry worldwide.  EWS's products are not core to the Group's component portfolio and the Disposal takes account of EWS's future prospects under the Group's ownership.  Accordingly the Board believes this is the right time to dispose of EWS and is pleased to have agreed the sale to Arc, a private engineering company based in Birmingham.

In the year ended 31 December 2014, EWS recorded Revenue of £18.7 million, Underlying Operating Profit of £1.7 million and had gross assets of approximately
£6.1 million.

The Disposal is expected to be dilutive to Group earnings, reducing 2015 Underlying Earnings Per Share by approximately 0.33 pence and 2016 Underlying Earnings Per Share by approximately 1.00 pence.  The Disposal will result in a small net loss on disposal which will be recognised in the 2015 full year accounts as an exceptional item.  This statement is not meant or intended to be a profit forecast, and should not be interpreted to mean that the Underlying Earnings Per Share of Tyman following completion of the Disposal will necessarily be above or below the historic published Underlying Earnings Per Share.

The proceeds arising from the Disposal will be retained within the Group and used for general corporate purposes.

Clearwater International acted as adviser to ERA on the Disposal.

Louis Eperjesi, Chief Executive Officer, commented:

"We are pleased to have completed the disposal of EWS, in line with our strategy of focusing on our portfolio of value added door and window components.  We continue to invest in new products, refining our geographic footprint and targeting selective acquisitions to develop the Group."

Enquiries:
Tyman plc	020 7976 8000
Louis Eperjesi
James Brotherton
MHP Communications	020 3128 8100
Reg Hoare
Jamie Ricketts
Jennifer Iveson

 

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