TIDMTYMN
RNS Number : 0905F
Tyman PLC
10 November 2015
10 November 2015
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 to date.
Current trading and outlook
Constant currency like for like revenues in the year to date
have been broadly flat compared with 2014; however the Group's
operating profitability has continued to improve - with further
expansion in margins being generated through pricing actions and
cost reduction initiatives.
Revenues have been impacted by the subdued end markets reported
in the first half continuing over the summer; with mid year order
book levels not being sustained into the second half.
Overall we now expect that the Group's Underlying Operating
Profit for the full year will be ahead of 2014; however slightly
below the range of current market expectations.
AmesburyTruth
North American markets remained subdued across the summer months
in single family new build completions and repair and remodelling;
with Canadian markets also impacted by the significant weakening of
the Canadian dollar. In the third quarter, the United States saw a
return to growth in single family housing permits and starts, which
will feed through into 2016 completions.
Integration initiatives in AmesburyTruth have now largely
concluded and the combined business will deliver synergy benefits
of at least US$8.0 million in 2015. The North American footprint
rationalisation project remains on schedule to deliver the benefits
outlined in at the full year results in March 2015.
ERA
UK and Ireland RMI markets continued to contract across the
summer. Our new product introductions have enabled us to grow share
within the OEM sector of the market, however this was more than
offset by declines in our share of the distribution market. ERA has
further new products coming to market in 2016 and has adopted a
more structured approach to the distribution sector that will
enable it to regain and grow market share.
Schlegel International
Trading conditions for Schlegel International in the period
remained generally challenging as expected; however Western Europe,
Southern Europe and the Nordic regions were stronger across the
summer than in 2014.
While the Brazilian markets remain slow, our business continued
to perform well and to make a meaningful contribution to the
Division. Our Australasian businesses saw encouraging trading
during the period with continued growth in Truth product sales.
Closure of Barcelona pile manufacturing plant
Since the half year the Group has announced the closure of the
Schlegel International pile manufacturing plant located in
Barcelona, Spain with production being relocated to the Division's
other European pile manufacturing facility located in Newton
Aycliffe, United Kingdom. Cash costs of closure and relocation to
be incurred in 2015 and 2016 are estimated at approximately Euro
6.0 million.
The closure is expected to be completed in Q3 2016 when the
current lease expires.
Financial position
The Group retains a strong and flexible balance sheet with good
cash generation in the year to date. Leverage at 31 December is
expected to be slightly below the Group's core year end target
range of 1.5 to 2.0x net debt: Underlying EBITDA.
As announced on 7 September 2015, the Group sold its steel
reinforcer business, EWS, for a net cash consideration of
approximately GBP7.25 million with the proceeds retained within the
Group.
Louis Eperjesi, Chief Executive of Tyman, commented:
"The period since the half year has seen continued subdued
markets across the majority of our geographies however, despite
little volume growth, our profitability and cashflow have continued
to expand, demonstrating the resilience of our self help model.
"While we expect these generally challenging market conditions
will persist into 2016, we remain optimistic about the medium term
prospects for markets in each of our Divisions and will continue to
implement our market share, pricing and efficiency initiatives to
improve and grow the business."
Enquiries:
Tyman plc
Louis Eperjesi
James Brotherton 020 7976 8000
MHP Communications
Reg Hoare
Jamie Ricketts
Jennifer Iveson 020 3128 8100
Conference Call Details
A conference call with Louis Eperjesi and James Brotherton for
analysts and investors will be held at 08.30 GMT today, Tuesday 10
November 2015.
Conference Dial in: 020 3139 4830
Participant PIN code: 36857787#
A replay facility will be made available shortly after the
conclusion of the conference call:
Dial-in number: 020 3426 2807
PIN code: 664068#
Future Dates
Tyman will issue its preliminary results announcement in respect
of the year ending 31 December 2015 on Tuesday 8 March 2016
Notes to editors:
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.
The Group employs over 2,900 people and operates facilities in
13 countries worldwide. Tyman is listed on the London Stock
Exchange under the ticker TYMN.
Further information on Tyman, including copies of historic IR
materials, is available at the Group's website -
www.tymanplc.com.
Definitions and a glossary of terms can be found in the Group's
Annual Report and Accounts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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