TIDMHAYT
RNS Number : 1279P
Hayward Tyler Group PLC
14 November 2016
14 November 2016
Hayward Tyler Group plc
Contract Wins
and
Update on New Banking Facilities
Hayward Tyler Group plc ("HTG", the "Company" or "Group"), the
specialist engineering group, comprising the operating companies of
Hayward Tyler and Peter Brotherhood, today announces a number of
contract wins at both of its operating companies together with
revised banking facilities and an intention to increase the
Company's loan note programme.
Peter Brotherhood
Peter Brotherhood, which HTG has relaunched since its
acquisition in October 2015, has continued to develop and grow its
pipeline and begun to convert this into contract wins. Some recent
key successes which will contribute towards delivering the "book
and fill" requirement for the current financial year include:
- A c.GBP2.0m contract win due for delivery in FY2018 for a
single 10.5mw steam turbine generator set for a waste heat recovery
project for a cement plant in Saudi Arabia;
- GBP1.5m of orders for a number of gearboxes for use in UK based Radar control towers;
- A number of smaller orders totalling c.GBP0.4m for ongoing
spares and support for combined heat and power units of which Peter
Brotherhood has a total installed base of over 60 units. These
units provide localised power generation for a variety of customers
and corporations such as Airbus, Royal Mail, McCains Foods,
Peterborough Hospital and in some cases have been for over 20 years
with an average fleet availability of over 92%;
- A replacement rotor for a steam turbine in a fertiliser plant
in the Middle East valued at over GBP1.0m for delivery within this
fiscal year.
Hayward Tyler
Additionally there has been a recent increase in activity levels
at Hayward Tyler, combined with some strategically important
contract wins which will also contribute towards delivering the
"book and fill" requirement for the current financial year
including:
- Multiple new order wins valued at over GBP2.5m for HT's boiler
circulating pumps for boiler makers in China and India, including
strategically important customers such as Shanghai Boiler Works and
NTPC Ltd (India's largest energy conglomerate) for delivery in
FY2018;
- An order valued at over GBP2.5m from FMC Technologies Inc for
permanent magnet subsea motors for deployment in an offshore oil
field off the West coast of Africa. This demonstrates further
encouraging progress on the back of the previously awarded motors
for an offshore oil field in Brazil and further underpins the
investment made in the Luton based Centre of Excellence;
- A new order from Southern Company valued at $0.8m for the
largest Canned Motor Pump which will ever have been delivered by
HT's US facility based in Colchester, Vermont.
Update on revised banking facilities
HTG is also pleased to announce that it has reached agreement
with its principal bank, Royal Bank of Scotland, to amend and
restate the Company's multicurrency committed borrowing facilities
agreement (the "Agreement"). The main changes are a short-term
increase in the revolving credit facility ("RCF") of GBP3.0m to
GBP11.9m and a relaxation of quarterly financial covenants, which
will now be measured from 31 March 2017 onwards, to give the Group
the financial flexibility to deliver the expected improvement in
trading of the business in 2H2017. The new repayment schedule under
both facilities is detailed below, and the maturity dates of the
committed facilities remain unchanged as follows:
-- GBP2.9 million term facility(1) matures on 30 September 2020;
and
-- GBP11.9 million RCF(2) matures on 30 November 2018.
1 repayments of GBP216,000 on 30 June and 31 December of each
year with a final repayment of GBP1,176,000 on 30 September
2020
2 limit reduces by GBP600,000 on 31 December 2016, GBP3,000,000
on 31 January 2017 and GBP300,000 on 31 March 2017 with a final
maturity on 30 November 2018
Loan note programme
HTG established a secured loan note programme of GBP3.0m in 2015
("Loan Note Programme") to provide a diversified source of funding.
The Company is seeking to increase the Loan Note Programme,
initially by GBP3.0m, in order to maintain a more appropriate
maturity profile on the Company's borrowings and repay GBP3.0m of
short-term borrowings due under the RCF by 31 January 2017. The RCF
was used to purchase fixed assets for the Centre of Excellence and,
accordingly, the new issue under the Loan Note Programme enables
the Group to match long-term assets with medium to long-term debt.
HTG intends to increase the overall Loan Note Programme from
GBP3.0m to GBP10.0m, leaving GBP4.0m already authorised, but not
issued, available for further growth opportunities.
Ewan Lloyd-Baker, Chief Executive Officer, commented:
"We are encouraged by the increasing momentum we are seeing in
terms of our sales pipeline converting into order intake across
both the Hayward Tyler and Peter Brotherhood businesses since the
interim period end. A combination of our growing order book and the
continuing strong support provided to the Group by our principal
bank, Royal Bank of Scotland, provides a solid foundation on which
to deliver against management's expectations both this year and
beyond."
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
For further information:
Hayward Tyler Group plc +44 (0)1582 731144
Ewan Lloyd-Baker, CEO
Nick Flanagan, CFO
FinnCap Limited-NOMAD and Broker +44(0)20 7220 0500
Matt Goode, Corporate Finance
Emily Watts, Corporate Finance
Tim Redfern, Corporate Broking
Tony Quirke, Corporate Broking
Akur Limited - Corporate Finance Adviser +44 (0) 20 7493
3631
David Shapton
Tom Frost
Siobhan Sergeant
Buchanan Communications, Financial PR +44(0)207 466 5000
Charles Ryland
Chris Judd
Jane Glover
This information is provided by RNS
The company news service from the London Stock Exchange
END
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