Trading Statement

RNS Number : 0905F

Tyman PLC

10 November 2015

 

10 November 2015

TYMAN PLC

("Tyman" or "the Group")

Trading Update

Tyman, a leading international supplier of engineered components to the door and window industry, issues the following Trading Update for the period from 30 June to date.

Current trading and outlook

Constant currency like for like revenues in the year to date have been broadly flat compared with 2014; however the Group's operating profitability has continued to improve - with further expansion in margins being generated through pricing actions and cost reduction initiatives.

Revenues have been impacted by the subdued end markets reported in the first half continuing over the summer; with mid year order book levels not being sustained into the second half.

Overall we now expect that the Group's Underlying Operating Profit for the full year will be ahead of 2014; however slightly below the range of current market expectations. 

AmesburyTruth

North American markets remained subdued across the summer months in single family new build completions and repair and remodelling; with Canadian markets also impacted by the significant weakening of the Canadian dollar.  In the third quarter, the United States saw a return to growth in single family housing permits and starts, which will feed through into 2016 completions. 

Integration initiatives in AmesburyTruth have now largely concluded and the combined business will deliver synergy benefits of at least US$8.0 million in 2015.  The North American footprint rationalisation project remains on schedule to deliver the benefits outlined in at the full year results in March 2015.

ERA

UK and Ireland RMI markets continued to contract across the summer.  Our new product introductions have enabled us to grow share within the OEM sector of the market, however this was more than offset by declines in our share of the distribution market.  ERA has further new products coming to market in 2016 and has adopted a more structured approach to the distribution sector that will enable it to regain and grow market share.

Schlegel International

Trading conditions for Schlegel International in the period remained generally challenging as expected; however Western Europe, Southern Europe and the Nordic regions were stronger across the summer than in 2014.

While the Brazilian markets remain slow, our business continued to perform well and to make a meaningful contribution to the Division.  Our Australasian businesses saw encouraging trading during the period with continued growth in Truth product sales.

Closure of Barcelona pile manufacturing plant

Since the half year the Group has announced the closure of the Schlegel International pile manufacturing plant located in Barcelona, Spain with production being relocated to the Division's other European pile manufacturing facility located in Newton Aycliffe, United Kingdom.  Cash costs of closure and relocation to be incurred in 2015 and 2016 are estimated at approximately Euro 6.0 million.

The closure is expected to be completed in Q3 2016 when the current lease expires.

Financial position 

The Group retains a strong and flexible balance sheet with good cash generation in the year to date.  Leverage at 31 December is expected to be slightly below the Group's core year end target range of 1.5 to 2.0x net debt: Underlying EBITDA.

As announced on 7 September 2015, the Group sold its steel reinforcer business, EWS, for a net cash consideration of approximately £7.25 million with the proceeds retained within the Group.

Louis Eperjesi, Chief Executive of Tyman, commented:

"The period since the half year has seen continued subdued markets across the majority of our geographies however, despite little volume growth, our profitability and cashflow have continued to expand, demonstrating the resilience of our self help model.

"While we expect these generally challenging market conditions will persist into 2016, we remain optimistic about the medium term prospects for markets in each of our Divisions and will continue to implement our market share, pricing and efficiency initiatives to improve and grow the business."

Enquiries: 

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

Conference Call Details

A conference call with Louis Eperjesi and James Brotherton for analysts and investors will be held at 08.30 GMT today, Tuesday 10 November 2015. 

Conference Dial in:                    020 3139 4830

Participant PIN code:                 36857787#

A replay facility will be made available shortly after the conclusion of the conference call:

Dial-in number:                         020 3426 2807

PIN code:                                 664068#

Future Dates

Tyman will issue its preliminary results announcement in respect of the year ending 31 December 2015 on Tuesday 8 March 2016

Notes to editors:

Tyman plc is a leading international supplier of engineered components to the door and window industry.  The Group's three divisions - AmesburyTruth, ERA and Schlegel International - are market leaders in their respective geographies.

The Group employs over 2,900 people and operates facilities in 13 countries worldwide.  Tyman is listed on the London Stock Exchange under the ticker TYMN.

Further information on Tyman, including copies of historic IR materials, is available at the Group's website - www.tymanplc.com.

Definitions and a glossary of terms can be found in the Group's Annual Report and Accounts.

 

END

 

 

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