Tyman (TYMN); interim results: revenue and underlying operating profit up by 3%

Published on 25-07-2018 07:25:25
Author Sparks Team

TYMN posted revenue and profit growth in constant currency, reported and like for like basis in the six months ended 30 June 2018.

Underlying profit margin (13.9 % vs 13.6 %) and RoCE (13.9 % vs 13.8 %) both saw improvement in the period, with encouraging contributions from the acquisition of Ashland and Zoo Hardware. AmesburyTruth division too witnessed trading ahead of H1 2017 with a bigger order book. ERA continued to garner share in a slow market but profitability was hit by market conditions. The SchlegelGiesse division grew in most markets and maintained the momentum in 1H.

All divisions witnessed input cost volatility and, consequently, will remain focussed on cost discipline. The effective tax rate for FY 2018 is expected to be c. 400 bps lower at 26% – 27% mainly due to reductions in the US Federal tax rate. Driven by buoyancy in free cash flow, leverage is expected to reduce and return to the Group’s target range of 1.5x – 2.0x.

Louis Eperjesi, CEO, commented: “Markets in North America grew in the period, with Canada proving to be more robust than expected. The UK residential RMI market is likely to remain slow in the second half; with better prospects for ERA seen in commercial and light infrastructure. EMEAI markets have continued their broad based recovery and look well set for a further year of growth. At the half year the Group has higher like for like order books than at 30 June 2017, and continues to trade in line with expectations. Accordingly the Board remains confident in the 2018 outlook for Tyman, provided that input cost volatility remains contained.”

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