TIDMTYMN
RNS Number : 5502O
Tyman PLC
08 November 2016
Tyman plc ("Tyman" or the "Group")
Trading Update
Tyman, a leading international supplier of engineered components
to the door and window industry, issues the following trading
update for the period from 30 June 2016 to date. This trading
update contains inside information.
Current trading and outlook
Trading in 2016 remains in line with expectations across the
Group as a whole. Encouraging growth has continued in European
markets and volumes have held up in UK and Irish markets,
offsetting slower trading in North America since the half year.
Constant currency like for like revenue in the year to date
remains marginally ahead of 2015 and there has been incremental
expansion in Group profitability generated through pricing actions,
early benefits derived from acquisitions and cost reduction
initiatives. The devaluation of Sterling against international
currencies in 2016 will also enhance the translation of revenue and
operating profit compared with 2015.
The Group's broad international exposure and balanced portfolio
means Tyman is well positioned for 2017 and beyond, despite
macroeconomic uncertainties and continued currency volatility.
AmesburyTruth
North American residential markets have been broadly flat in the
year to date with activity levels slowing after a strong first
quarter and the expected improvement from the half year not
materialising.
In the new build sector there has been a small increase in
single family home activity which has partially offset declines in
multifamily completions. Permit levels in the new build sector of
the market remain strong. The repair and remodelling sector, which
comprises the majority of the market, has remained relatively
subdued for a second successive year. Canadian markets have shown
some signs of improvement since the half year.
Bilco has traded ahead of 2015 since acquisition on 1 July and
integration initiatives remain on schedule.
The North American footprint rationalisation project continues
with the extended facility in Juarez, Mexico now offering full
service production, the Canton, South Dakota facility expected to
close by the end of 2016 and the move to the new facility in Sioux
Falls, South Dakota expected to complete by the end of the first
quarter of 2017. The project will start to generate incremental
cost benefits from 2017 and remains on track to deliver the US$10.0
million of cost benefits from 2020.
AmesburyTruth expects to see modest growth in North American
residential markets in 2017 with lead indicators for both new
construction and repair and remodelling remaining positive. The
Division is well positioned to start to grow its share in US
commercial utilising the Bilco channels to market.
ERA
UK and Ireland RMI markets, which softened around the time of
the EU referendum, have remained reasonably steady across the
summer months and into the autumn. The Division has made good
progress with new product introductions into the UK market and has
succeeded in regaining some share in the distribution sector.
The majority of ERA's products are sourced from the Far East and
the Division continues to see significant increases in the landed
cost of imported products into the UK market as a result of the
devaluation of Sterling. To date these increases have successfully
been recovered through pricing and surcharge actions.
Given macroeconomic uncertainties, ERA remains cautious about
the outlook for RMI in the UK and Ireland in 2017 and expects the
market to be flat to down next year. However, the Division has
additional new products coming to market next year, including the
launch of trade and retail wireless alarm offerings, and expects to
make further progress in distribution.
Schlegel International (incorporating Giesse)
Trading conditions for Schlegel International in EMEAI continued
to improve although, as expected, the pace of year on year
improvement in Continental Europe moderated during the third
quarter. South American markets remain variable with Argentina
slowing and seeing significant cost inflation and the Brazilian
market continuing to contract. Asia Pacific markets, including
China and Australia, have remained broadly flat in the year to
date.
The integration of Giesse is progressing well with the closures
of the Giesse facility in Mauá, Brazil and the Schlegel warehouses
in Barcelona and Singapore all completed since the half year. The
Schlegel Italy distribution facility in Milan is expected to close
before the year end. The formal transfer of the Giesse Gulf trade
and assets to Schlegel International completed on 31 August
2016.
Schlegel International expects to see continued encouraging
growth in EMEAI markets in 2017. South American and Asia Pacific
markets are likely to remain profitable but subdued for some time
to come.
Financial position
The Group has achieved good cash generation in the year to date.
Leverage is expected to reduce, from the 2.35x reported on the
completion of the Bilco acquisition, to around the top of the
Group's core year end target range of 1.5 to 2.0x by 31 December
2016.
Capital markets event
On Thursday 10 November 2016 Tyman will hold a capital markets
event for analysts and institutional investors focussed on the
Group's Schlegel International Division. No new financial
information will be disclosed at the event and presentation
materials will be made available at the Group website.
Louis Eperjesi, Chief Executive of Tyman, commented:
"The Group has continued to make good progress during 2016,
despite generally softer end markets in the year to date.
Profitability and cash generation have expanded and the
integrations of both Giesse and Bilco are proceeding according to
plan.
"We expect to make further progress next year through our well
established self help, growth and innovation initiatives, despite
the uncertainties surrounding the general macro economic outlook.
These include the completion of the integrations of our newly
acquired businesses, further investment to improve the Group's
manufacturing and supply chain capabilities, continued new product
introductions and focus on margin expansion and cash
generation.
"Our broad international exposure and balanced portfolio means
Tyman is well positioned for 2017 and beyond."
8 November 2016
Enquiries:
Tyman plc 020 7976 8000
Louis Eperjesi - Chief Executive Officer www.tymanplc.com
James Brotherton - Chief Financial Officer
MHP Communications 020 3128 8100
Reg Hoare
Jamie Ricketts
Nessyah Hart
Conference Call Details
A conference call with Louis Eperjesi and James Brotherton for
analysts and investors will be held at 08.30 am today, Tuesday 8
November 2016.
UK Toll Number: 020 3139 4830
UK Toll-Free Number: 080 8237 0030
Participant PIN code: 95666878#
A replay facility will be made available shortly after the
conclusion of the conference call:
UK Toll Number: 020 3426 2807
UK Toll-Free Number: 080 8237 0026
PIN code: 679066#
Future Dates
Tyman will issue its preliminary results announcement in respect
of the year ending 31 December 2016 on Wednesday 8 March 2017.
Notes to editors
Tyman plc
Tyman plc is a leading international supplier of engineered
components to the door and window industry. The Group's three
Divisions - AmesburyTruth, ERA and Schlegel International - are
market leaders in their respective geographies.
Following the acquisitions of Bilco, Giesse and Response the
Group employs over 3,500 people and operates facilities in 19
countries worldwide. Tyman is listed on the London Stock Exchange
under the ticker TYMN.
Further information on the Group and the Group's products is
available at www.tymanplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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