£480.8m market cap

245p last close

Tyman’s product portfolio substantially addresses the residential RMI and building markets with increasing commercial sector exposure following acquisitions. It manufactures and sources window and door hardware and seals, reporting in three divisions.

Investment summary

H118 progress was hard-earned, with pricing, some volume and acquisition effects all contributing to group revenue and EBIT growth with a slightly improved group margin (+6%, +8% and +30bp to 13.9%, respectively). North America remains the primary driver of underlying growth and acquisitions are also contributing to moving earnings forward. Tyman’s November trading update referenced firmer demand in two important European markets, some short-term input cost drag in North America and two small acquisitions: Profab (ERA, commercial access doors) and Reguitti (SchlegelGiesse, Italian residential door hardware manufacturer) were both acquired in August for a combined EV of c £19m. Overall, we made a small net EPS reduction for FY18 followed by small upgrades in the following two years.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 457.6 82.5 62.1 25.3 9.7 5.3
2017A 522.7 91.7 68.3 26.7 9.2 6.5
2018E 586.8 100.0 73.7 28.0 8.8 5.7
2019E 635.7 117.7 88.6 33.0 7.4 4.5
Last updated on 19/02/2019
Industry outlook

Leading North American and European markets are expected to grow modestly and the new-build sector has generally continued to be firmer than RMI spend which has been more patchy.

Last updated on 19/02/2019
Share price graph
Balance sheet
Forecast net debt (£m) 218.9
Forecast gearing ratio (%) 53
Price performance
Actual 2.3 (5.2) (26.7)
Relative* (0.5) (7.6) (25.6)
52-week high/low 358.0p/222.5p
*% relative to local index
Key management
Martin Towers Chairman
Louis Eperjesi CEO
James Brotherton CFO