£443.5m market cap

226p 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

Headline revenue and EBIT progress in H119 was somewhat overshadowed by production transition issues at AmesburyTruth (AT), which resulted in modest like-for-like declines in these metrics. The SchlegelGiesse and ERA divisions both improved their underlying and reported revenue and EBIT y-o-y and while acquisition contributions and FX benefitted reported AT numbers, like-for-likes were modestly below the prior year. At group level, normalised PBT was ahead by c 4% (after a small adverse IFRS16 effect) and, while earnings on the same basis were flat, the interim DPS was increased by c 3% y-o-y. The increase in net debt to £228m (pre IFRS16) was consistent with the normal seasonal pattern and well within existing term borrowing facilities. In the near term, Tyman’s new management team is tasked with rectifying production-related issues in North America that have caused us to reduce our earnings estimates in all three forecast years.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 522.7 91.7 68.3 26.7 8.5 6.0
2018A 591.5 98.5 72.7 27.5 8.2 5.1
2019E 621.0 101.1 70.0 26.1 8.7 4.6
2020E 629.1 105.5 74.3 27.7 8.2 4.0
Last updated on 13/09/2019
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 13/09/2019
Share price graph
Balance sheet
Forecast net debt (£m) 182.1
Forecast gearing ratio (%) 43
Price performance
Actual 13.0 (6.4) (34.8)
Relative* 10.4 (7.1) (35.3)
52-week high/low 358.0p/195.6p
*% relative to local index
Key management
Martin Towers Chairman
Jo Hallas CEO
Jason Ashton CFO