TIDMTYMN
RNS Number : 3019B
Tyman PLC
07 October 2020
TYMAN PLC
Trading and COVID-19 Update
Tyman plc ("Tyman" or the "Group"), a leading international
supplier of engineered components and access solutions to the
construction industry, provides an update on trading for the period
from 1 July 2020 to 30 September 2020 (Q3).
Trading and COVID impact
The Group's first priority continues to be the health and safety
of our employees, their families and our communities. We have
maintained enhanced hygiene, social distancing and other best
practice measures across the Group.
Trading has significantly exceeded our expectations in Q3.
Whilst there has been an element of pent-up demand release and
customer restocking, order intake continues to improve in all three
divisions, indicating the strength of underlying demand.
Group revenue declined by 10% to GBP416.4 million on a reported
basis for the nine months to 30 September 2020 compared with the
corresponding period in 2019, with Q3 revenue flat to prior year on
a reported basis and +3% on a like-for-like basis.
Like-for-Like (LFL) revenue vs 2019
H1 2020 Jul Aug Sep Q3 2020 9 mths
to 30 Sep
2020
=============== ======== ===== ===== ===== ======== ===========
North America -12% +3% -6% +8% +1% -8%
UK & Ireland -28% +2% -1% +8% +3% -17%
International -22% -9% +37% +14% +9% -12%
Group -17% Flat Flat +9% +3% -10%
=============== ======== ===== ===== ===== ======== ===========
Order intake is particularly strong in North America, driven by
a sharp recovery in both single family housing starts and RMI
activity. The Group has proportionately greater exposure to single
family starts and has benefited from a recent change in mix from
multi-family starts to single-family starts, driven by "urban
flight". Single family housing starts for the year to date are 4%
higher than 2019, with Q3 2020 starts being 11% higher than Q3
2019. This quicker than expected recovery in activity, following a
period of reduced production during April and May, is causing some
industry-wide pressure on inventories and service levels. We have
put in place immediate actions to ramp up production to meet the
increased demand and are working closely with both our suppliers
and customers.
The UK market also continues to recover strongly, reflecting
increasing numbers of housing transactions and very high mortgage
approval levels, in part stimulated by continued low borrowing
rates, the temporary cut to stamp duty and a desire for more space
as a result of lockdown. The IHS Markit/Construction PMI for
September was 56.8, the highest level since October 2015, with home
building the strongest performing category.
Balance sheet and liquidity
The Group maintains significant liquidity headroom supported by
Tyman's high levels of cash generation. At 30 September 2020, we
had improved our net debt to EBITDA ratio on a covenant basis to
1.4x (30 June 2020: 1.8x), which compares against our covenant
level of 3.5x at 31 December 2020.
This has been driven by cost savings and careful management of
cashflow, including a much lower than normal seasonal stock build
in Q2 due to the uncertainty. The quicker than expected recovery in
Q3 has led to a further reduction in working capital, as well as
deferral of some capital expenditure into 2021 due to the
operational focus on servicing current demand.
Strategic progress
The Group believes the strategy of focus, define, grow continues
to be the right one in the context of COVID-19 to strengthen the
Group and further enhance our portfolio of world class brands and
differentiated products to deliver meaningful value to our
customers and thereby create shareholder value. Although the
current focus is inevitably the intensive management of our
response to the COVID-19 crisis, good progress has also been made
on these strategic priorities.
We continue to strengthen customer engagement and execution in
North America with net wins of $4 million annualised revenue
achieved in the nine months to September 2020, in spite of customer
engagement currently being handled virtually and more limited
customer appetite for new business at a time of intense
demand-driven activity.
Operational improvements at the Statesville facility are
progressing to plan, with the accomplishments in the first half now
yielding benefits at the accelerated rate anticipated. Other
footprint optimisations in North America completed in the first
half are on track to deliver the previously announced savings of c.
$1 million in the second half. Further initiatives are also
underway, including the transfer of a further $10 million of
revenue to our Monterrey, Mexico facility with an additional $1
million of annualised savings.
New product launches have largely progressed as planned,
including the Reguitti mid-price point range now launched for the
German market and traction continuing with the ERA Protect range of
smartware products in the UK.
Board changes
Further to the announcement on 17 September 2020, Nicky Hartery
joined the Board on 1 October 2020 and will succeed Martin Towers
as Chair of Tyman plc on 1 December 2020.
Dividend
The Board is currently of the view that if momentum is
maintained during Q4 and into 2021, and as a statement of
confidence in the Group's future prospects and cashflow delivery,
consideration will be given to the appropriateness of a modest
final dividend for 2020.
Outlook
The Q3 performance along with the strong order book and order
intake levels mean we now anticipate reported revenue in H2 2020
will only be slightly behind H2 2019, which is far better than our
original expectations. The Group continues to make good progress on
its strategic objectives to drive both growth and margin expansion.
In respect of H2 2020, the Group expects to benefit from underlying
operational improvements as well as some one-off cost savings
resulting from its response to COVID-19. Leverage at 31 December
2020 is expected to be below 1.4x adjusted EBITDA.
Jo Hallas, Chief Executive Officer, commented:
"The strength of demand recovery in Q3 is very encouraging, and
we are working closely with our customers to support them through
this exceptional period. While the outlook continues to be
uncertain, the strength of structural industry growth drivers is
clearly evident, particularly in the US. Our strategic initiatives
are having the desired impact in strengthening our base and will
position the business well for future growth, building on our
portfolio of differentiated products, market-leading brands and
deep customer relationships."
7 October 2020
Enquiries
Tyman plc 020 7976 8000
Jo Hallas - Chief Executive Officer www.tymanplc.com
Jason Ashton - Chief Financial Officer
MHP Communications 020 3128 8100
Reg Hoare / Rachel Mann / Ailsa Prestige
Notes to editors
Tyman (TYMN: LSE) is a leading international supplier of
engineered fenestration components and access solutions to the
construction industry. The company designs and manufactures
products that enhance the comfort, sustainability, security, safety
and aesthetics of residential homes and commercial buildings.
Tyman's portfolio of leading brands serve their markets through
three divisions: North America (AmesburyTruth), UK and Ireland
(ERA) and International (SchlegelGiesse). Headquartered in London,
the Group employs approximately 3,900 people with facilities in 18
countries worldwide. Further information is available at
www.tymanplc.com .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBCBDGXXGDGGL
(END) Dow Jones Newswires
October 07, 2020 02:00 ET (06:00 GMT)
Tyman (LSE:TYMN)
Historical Stock Chart
From Apr 2024 to May 2024
Tyman (LSE:TYMN)
Historical Stock Chart
From May 2023 to May 2024