Last close As at 06/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Research: Industrials
Tyman
Written by
Tyman |
Focus on above market growth |
Sector comment and trading update |
Construction & materials |
9 December 2016 |
Share price performance
Business description
Next events
Analysts
Tyman is a research client of Edison Investment Research Limited |
|||||||||||||||||||||||||||||||||||||||||||||||
While market conditions are mixed, Tyman is focused on significant investment and footprint programmes in all three divisions, each also benefitting from acquisitions. This should provide relative resilience if markets remain sluggish and the rating and yield both have attractions given our expectations for progress.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/14 |
350.9 |
41.6 |
18.4 |
8.0 |
14.3 |
3.0 |
12/15 |
353.4 |
44.9 |
19.2 |
8.8 |
13.7 |
3.3 |
12/16e |
454.3 |
54.5 |
22.0 |
9.3 |
12.0 |
3.5 |
12/17e |
533.9 |
64.3 |
25.3 |
10.3 |
10.4 |
3.9 |
Note: *PBT and EPS (fully diluted) are normalised, as defined by Tyman, excluding intangible amortisation and exceptional items.
Schlegel International – building opportunity
A management presentation highlighted progress in shaping the original Schlegel operations together with Giesse (acquired in March) but also significant sector opportunities from both existing portfolio products and prospective new ones. The task is now to capitalise on these by deepening divisional and group integration and driving cross-selling in the first instance but also building the offering. The international platform is already broad; consolidation and geographic expansion will both feature and footprint efficiency continues to evolve. The challenge will be focus and capital allocation balancing short-term opportunities and longer-term strategic moves. The scale of ambition is clear, aiming to double EBIT in five years (to 2021) and reaching mid-teen margins (vs our expected c 8% in FY16)
Mixed markets, positive FX and acquisition effects
An earlier trading update (8 November) pointed to mixed regional trading patterns in H2 with some improvement in Europe and Canada, and stable but sluggish conditions in the US, UK and Asia Pacific markets. Recent acquisitions Bilco and Giesse are bedding in well and the US footprint programme is well underway with benefits to come from 2017, as previously outlined. Weaker sterling has had a positive FX translation effect on overseas earnings but UK import costs are rising. We trimmed our underlying PBT/EPS estimates by c 2% across all forecast years, largely a US effect partly offset elsewhere. However, after updating FX rates (FY16 £/US$1.35; FY17/FY18 £/US$1.25) our current year estimates are effectively unchanged, with PBT/EPS increases of c 3% in the next two years.
Valuation: Scope for robust performance
Tyman’s share price has largely traded in a 240-300p range during 2016, being flat now YTD, underperforming the FT All Share Index by c 12%. At the current level, the closing year P/E is 12.0x and EV/EBITDA of 8.5x, which reduce to 10.1x and 7.2x respectively one year out. Tyman’s expected growth (our three-year EPS CAGR is c 12%) is partly driven by acquisitions and internal actions in markets that are likely to grow modestly. Consequently, we contend that there is scope for relatively robust performance from here.
Exhibit 1: Financial summary
£m |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016e |
2017e |
2018e |
|||
December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
|||
PROFIT & LOSS |
|
|
Group |
Continuing |
Continuing |
|
|
|
|
|
|
|
Revenue |
|
|
266.2 |
216.3 |
228.8 |
298.1 |
350.9 |
353.4 |
454.3 |
533.9 |
547.9 |
|
Cost of Sales |
|
|
(173.4) |
(145.2) |
(154.0) |
(198.8) |
(236.1) |
(234.0) |
(308.4) |
(383.9) |
(394.4) |
|
Gross Profit |
|
|
92.8 |
71.1 |
74.7 |
99.3 |
114.8 |
119.4 |
145.9 |
150.0 |
153.5 |
|
EBITDA |
|
|
40.2 |
27.7 |
28.5 |
39.4 |
54.6 |
60.4 |
75.6 |
87.8 |
92.6 |
|
Operating Profit (Edison) |
|
|
33.7 |
22.4 |
23.4 |
33.0 |
46.9 |
52.4 |
65.1 |
75.9 |
80.3 |
|
Net Interest |
|
|
(8.9) |
(5.9) |
(3.3) |
(3.4) |
(4.5) |
(6.0) |
(9.2) |
(10.3) |
(10.0) |
|
Other Finance |
|
|
(2.9) |
(3.6) |
(0.9) |
0.2 |
(2.2) |
(0.6) |
(0.5) |
(0.5) |
(0.5) |
|
Share Based Payments |
|
|
(0.1) |
(0.2) |
(0.5) |
(0.7) |
(0.9) |
(1.0) |
(1.0) |
(1.0) |
(1.0) |
|
Intangible Amortisation |
|
|
(11.7) |
(10.6) |
(10.8) |
(16.6) |
(17.8) |
(19.6) |
(19.6) |
(19.6) |
(19.6) |
|
Exceptionals |
|
|
(0.4) |
0.7 |
(33.4) |
(11.4) |
(9.3) |
(9.4) |
(12.0) |
(4.0) |
(4.0) |
|
Other |
|
|
(0.3) |
(0.1) |
(0.4) |
(0.4) |
(0.3) |
(0.4) |
(0.4) |
(0.4) |
(0.4) |
|
Profit Before Tax (Edison norm) |
|
21.9 |
12.7 |
18.7 |
29.2 |
39.3 |
44.9 |
54.4 |
64.2 |
68.8 |
||
Profit Before Tax (Company norm) |
|
24.8 |
17.4 |
21.3 |
28.6 |
41.6 |
44.9 |
54.5 |
64.3 |
68.9 |
||
Profit Before Tax (FRS 3) |
|
|
9.5 |
2.6 |
(25.8) |
0.8 |
11.9 |
15.6 |
22.5 |
40.4 |
44.9 |
|
Tax |
|
|
(2.5) |
6.4 |
3.7 |
0.2 |
(2.6) |
(7.9) |
(10.4) |
(13.4) |
(14.8) |
|
Profit After Tax (norm) |
|
|
19.4 |
19.1 |
22.4 |
29.4 |
36.8 |
37.0 |
43.9 |
50.8 |
54.0 |
|
Profit After Tax (FRS 3) |
|
|
7.0 |
9.1 |
(22.1) |
1.0 |
9.3 |
7.7 |
12.0 |
27.0 |
30.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of Shares Outstanding (m) |
|
129.8 |
129.7 |
129.7 |
152.8 |
167.8 |
168.2 |
172.7 |
177.0 |
177.0 |
||
EPS - Edison normalised (p) FD |
|
|
10.7 |
6.7 |
9.6 |
13.9 |
17.1 |
19.1 |
21.9 |
25.3 |
27.1 |
|
EPS - Company normalised (p) FD |
|
|
11.4 |
9.4 |
10.2 |
13.5 |
18.4 |
19.2 |
22.0 |
25.3 |
27.1 |
|
EPS - FRS 3 (p) |
|
|
5.3 |
6.8 |
(16.7) |
0.6 |
5.6 |
4.6 |
7.0 |
15.2 |
17.0 |
|
Dividend per share (p) |
|
|
2.0 |
3.4 |
4.5 |
6.0 |
8.0 |
8.8 |
9.3 |
10.3 |
11.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin (%) |
|
|
34.9 |
32.9 |
32.7 |
33.3 |
32.7 |
33.8 |
32.1 |
28.1 |
28.0 |
|
EBITDA Margin (%) |
|
|
15.1 |
12.8 |
12.5 |
13.2 |
15.6 |
17.1 |
16.6 |
16.4 |
16.9 |
|
Operating Margin (before GW and except.) (%) |
12.7 |
10.4 |
10.2 |
11.1 |
13.4 |
14.8 |
14.3 |
14.2 |
14.6 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET |
|
|
Group |
Continuing |
Continuing |
|
|
|
|
|
|
|
Fixed Assets |
|
|
367.4 |
352.8 |
298.1 |
404.2 |
410.6 |
398.4 |
540.9 |
535.7 |
527.2 |
|
Intangible Assets |
|
|
328.2 |
312.7 |
258.7 |
354.4 |
355.7 |
340.5 |
450.7 |
434.1 |
417.4 |
|
Tangible Assets |
|
|
31.5 |
30.5 |
29.8 |
39.9 |
42.9 |
42.8 |
77.2 |
85.9 |
94.1 |
|
Investments |
|
|
7.7 |
9.6 |
9.5 |
9.8 |
12.1 |
15.0 |
12.9 |
15.7 |
15.7 |
|
Current Assets |
|
|
86.7 |
96.361 |
90.7 |
118.9 |
124.0 |
111.0 |
180.0 |
211.1 |
236.4 |
|
Stocks |
|
|
26.0 |
26.6 |
27.6 |
40.7 |
47.6 |
46.0 |
73.1 |
85.0 |
87.3 |
|
Debtors |
|
|
28.2 |
24.1 |
23.7 |
29.9 |
31.5 |
31.7 |
53.2 |
62.5 |
64.2 |
|
Cash |
|
|
27.7 |
20.4 |
35.9 |
43.6 |
39.3 |
30.0 |
50.3 |
60.3 |
81.5 |
|
Current Liabilities |
|
|
(51.8) |
(55.1) |
(44.2) |
(60.8) |
(52.3) |
(44.4) |
(64.5) |
(78.5) |
(84.8) |
|
Creditors |
|
|
(46.6) |
(42.2) |
(36.7) |
(54.0) |
(52.3) |
(44.4) |
(64.5) |
(78.5) |
(84.8) |
|
Short term borrowings |
|
|
(5.2) |
(12.9) |
(7.5) |
(6.8) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Long Term Liabilities |
|
|
(163.7) |
(144.8) |
(96.9) |
(161.7) |
(176.2) |
(156.7) |
(314.2) |
(313.2) |
(312.3) |
|
Long term borrowings |
|
|
(114.3) |
(100.2) |
(63.6) |
(115.5) |
(128.0) |
(111.6) |
(248.5) |
(248.5) |
(248.5) |
|
Other long term liabilities |
|
|
(49.4) |
(44.6) |
(33.3) |
(46.2) |
(48.2) |
(45.1) |
(65.6) |
(64.7) |
(63.8) |
|
Net Assets |
|
|
238.6 |
249.2 |
247.7 |
300.6 |
306.1 |
308.3 |
342.2 |
355.1 |
366.4 |
|
|
|
|
|
0.000 |
|
|
|
|
|
|
|
|
CASH FLOW |
|
|
Group |
Continuing |
Continuing |
|
|
|
|
|
|
|
Operating Cash Flow |
|
|
38.6 |
32.6 |
23.6 |
38.9 |
40.1 |
48.9 |
61.9 |
72.4 |
86.7 |
|
Net Interest |
|
|
(9.3) |
(6.7) |
(4.2) |
(2.6) |
(4.6) |
(6.2) |
(9.2) |
(10.3) |
(10.0) |
|
Tax |
|
|
(2.3) |
(1.9) |
(4.9) |
(6.2) |
(6.3) |
(8.9) |
(8.9) |
(11.9) |
(13.3) |
|
Capex |
|
|
(3.5) |
(4.9) |
(6.8) |
(8.1) |
(10.2) |
(10.9) |
(22.4) |
(23.4) |
(23.4) |
|
Acquisitions/disposals |
|
|
0.0 |
(10.3) |
51.2 |
(131.2) |
(6.5) |
6.8 |
(111.3) |
0.0 |
0.0 |
|
Financing |
|
|
0.0 |
(0.3) |
(1.1) |
68.1 |
(4.3) |
(2.6) |
16.7 |
0.0 |
0.0 |
|
Dividends |
|
|
0.0 |
(2.6) |
(5.8) |
(7.0) |
(10.9) |
(14.6) |
(15.6) |
(16.9) |
(18.8) |
|
Net Cash Flow |
|
|
23.5 |
6.0 |
51.9 |
(48.2) |
(2.8) |
12.5 |
(88.9) |
9.9 |
21.3 |
|
Opening net debt/(cash) |
|
|
111.0 |
91.7 |
92.7 |
35.2 |
78.7 |
88.7 |
81.6 |
198.2 |
188.3 |
|
HP finance leases initiated |
|
|
(0.0) |
(2.7) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other |
|
|
(4.2) |
(4.4) |
5.6 |
4.7 |
(7.2) |
(5.4) |
(27.8) |
0.0 |
(0.0) |
|
Closing net debt/(cash) |
|
|
91.7 |
92.7 |
35.2 |
78.7 |
88.7 |
81.6 |
198.2 |
188.3 |
167.0 |
|
Source: Company accounts, Edison Investment Research
|
|