TIDMTYMN
RNS Number : 7159V
Tyman PLC
07 November 2017
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 2017 to date. This trading
update contains inside information.
Current trading and outlook
Revenue and Underlying Profit before Taxation for the full year
for Tyman are expected to be ahead of 2016, assisted by full year
contributions from the acquisitions of Giesse and Bilco, synergy
benefits and favourable exchange rates.
Underlying Profit before Taxation for the full year is now
expected to be slightly below the current range of analyst
expectations*, principally due to increased input costs not yet
recovered and the previously reported temporary operational issues
in the AmesburyTruth Division.
Schlegel International has continued to perform encouragingly in
2017 and ERA has taken some share in a market that is down in the
UK. The temporary operational issues in North America resulted in
AmesburyTruth trading slightly behind the overall market, which has
seen modest growth in the year to date.
The Group expects to make further progress in 2018 with the
market outlook in North America and Continental Europe remaining
positive. Tyman will continue with its programme of self help
initiatives, including price recovery where appropriate, to improve
margins.
* as at 7 November 2017 the range of analyst expectations
compiled by the Group from published research notes for Underlying
Profit before Taxation for the 2017 financial year is between
GBP69.6 million - GBP72.3 million.
AmesburyTruth
North American residential and commercial markets have seen
modest growth in 2017 with the Canadian market performing more
robustly than in recent years. Bilco has traded in line with 2016
in the year to date with pricing actions offsetting slightly lower
volumes and integration remains on track. Underlying operating
margins for the Division for the full year are expected to be lower
than in 2016, principally due to the consolidation of Bilco for a
full twelve months and increased input costs not yet recovered.
AmesburyTruth's new facility in Statesville, North Carolina is
now operational and the planned 2018 closures of the Amesbury,
Massachusetts and Rochester, New York facilities have been
announced. The Juarez, Mexico facility is operating at its targeted
production levels and customer service levels are returning to
normal as the previously reported operational issues are being
resolved. The Division remains confident that the North American
footprint project will deliver the expected US$10.0 million of cost
benefits from 2020.
The new national sales representative network has seen an
improvement in the level of new client wins and leads generated and
a first distribution warehouse has opened in Dallas, Texas. The new
network is expected to lead to an increase in market share among
tier 3 and 4 accounts during 2018.
Input costs have continued to increase in the second half of
2017; most notably zinc, paint and oil derivatives. Given this
year's operational issues, the Division has not fully recovered the
impact of these increases through price; although expects to resume
its usual price recovery programme in 2018.
AmesburyTruth expects to see continued growth in North American
residential and commercial markets in 2018 with lead indicators for
new construction and repair and remodelling remaining positive in
both the US and Canada.
ERA
UK RMI markets have remained subdued in 2017. ERA's like for
like Revenue for the full year is expected to be ahead of 2016 due
to successful pricing and surcharge actions, increased volumes into
distribution and only slightly lower volumes into OEM; indicating
some modest market share gains. Bilco UK and Howe Green continue to
have encouraging pipelines of opportunities. As previously
indicated, Underlying operating margins in ERA for the full year
will be lower than 2016, principally due to last year's exchange
benefits not repeating in 2017.
The Division has started to occupy its new premises in the West
Midlands with full occupancy scheduled for the start of 2018. As a
result, three existing UK distribution facilities will be closed by
the end of the year.
ERA remains cautious about the outlook for RMI in 2018 and
expects the market will be flat to down next year. However, the
Division will look to build on the share gains made this year in
distribution and OEM, and the opportunities afforded for improved
customer service in operating from a single location.
Schlegel International
Schlegel International's full year like for like Euro Revenue is
expected to be slightly ahead of 2016, principally reflecting the
continued improvement in Continental European trading conditions.
Since the half year Middle Eastern markets have strengthened and
Latin American markets have shown some early signs of recovery.
Asia Pacific markets, including China and Australia, have remained
flat to down in the year to date. Underlying operating margins in
Schlegel for the full year will be higher than in 2016 due to
recovering European markets and realised synergy benefits which
remain on target.
Schlegel International expects to see further growth in EMEAI
markets in 2018 and Latin American markets are expected to be more
robust than in recent years. Asia Pacific markets are likely to
remain profitable but subdued.
Financial position
The Group has achieved good cash generation in the year to date.
Leverage is expected to be within the Group's core year end target
range of 1.5x to 2.0x at 31 December 2017.
Capital markets event - 8 November 2018
On Wednesday 8 November 2017 Tyman will hold a capital markets
event for analysts and institutional investors focussed on the
Group's AmesburyTruth Division. No new financial information will
be disclosed at the event and presentation materials will be made
available at the Group's website.
Louis Eperjesi, Chief Executive of Tyman, commented:
"For the full year we expect to report Revenue and Underlying
Profit before Taxation ahead of 2016, assisted by contributions
from the acquisitions of Giesse and Bilco, synergy benefits and
favourable exchange rates. Underlying Profit before Taxation for
the full year is now expected to be slightly below the current
range of analyst expectations, principally due to increased input
costs not yet recovered and the previously reported temporary
operational issues in the AmesburyTruth Division.
"The year to date has seen an encouraging performance from
Schlegel International with the expanded product offering gaining
traction, most notably in Continental Europe, and Middle East and
Latin American trading also improving in Q3. AmesburyTruth has made
further progress in its footprint project in 2017 with the
operational issues in Mexico now being resolved and the Canadian
market continues to improve. ERA has taken some share in what
remains a flat to down market and has started operating from its
new West Midlands facility.
"We expect to make further progress in 2018 with the market
outlook in North America and Continental Europe remaining positive
and will continue with our programme of self help initiatives,
including price recovery, to improve margins."
7 November 2017
Enquiries:
Tyman plc 020 7976 8000
Louis Eperjesi - Chief Executive Officer www.tymanplc.com
James Brotherton - Chief Financial Officer
MHP Communications 020 3128 8100
Reg Hoare
Ivana Petkova
Nessyah Hart
Conference call dial in details
A conference call with Louis Eperjesi and James Brotherton for
analysts and investors will be held at 08.30 a.m. today, Tuesday 8
November 2017.
UK Toll Number: 0333 300 0804
UK Toll-Free Number: 0800 358 9473
Participant PIN code: 97946956#
A replay facility will be made available shortly after the
conclusion of the conference call:
UK Toll Number: 0333 300 0819
UK Toll-Free Number: 0800 358 2049
Participant PIN code: 301208618#
Future dates
Tyman will issue its preliminary results announcement in respect
of the year ending 31 December 2017 on Tuesday 6 March 2018.
Notes to editors
Tyman plc
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 3,500 people and operates facilities in
19 countries worldwide. Tyman is listed on the London Stock
Exchange under the ticker TYMN.
Further information on Tyman and the Group's products is
available at the Group's website: www.tymanplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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