Tyman expects annual profit to be above top end of expectations

(Alliance News) - Tyman PLC on Tuesday said it expects adjusted operating profit in 2021 to be ...

Alliance News 27 July, 2021 | 8:49AM
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(Alliance News) - Tyman PLC on Tuesday said it expects adjusted operating profit in 2021 to be slightly above the top end of the current range of analyst expectations following a strong half year.

Pretax profit for the six months ended June 30 was approximately GBP34.3 million, more than doubled year-on-year from USD14.7 million. It represents an even bigger increase from pre-pandemic levels of GBP11.0 million.

Adjusted pretax profit was GBP43.4 million, a 76% increase from GBP24.7 million a year ago and a 25% increase from GBP34.7 million in 2019.

London-based supplier of door and window components posted revenue of GBP312.5 million for the recent six months, a rise of 32% from GBP254.1 million a year ago. This represents a 10% increase from GBP301.9 million in 2019.

Positive trends from Covid-19 have continued across most territories, Tyman said, with consumers spending more time at home and therefore seeking more space or adapting existing space for flexible use.

However, the high levels of demand have continued to put pressure on service levels industry-wide in most of the group's territories, exacerbated by raw material availability issues and global logistics disruption. The US has suffered from a very tight labour market, resulting in operational challenges which have impacted production and shipping levels, Tyman said.

The spike in demand for goods globally has driven significant increases in commodity costs and freight costs, the company said, with the US also seeing significant labour cost inflation. The group has implemented price increases and temporary surcharges to recover cost inflation.

Tyman have reinstated an interim dividend at 4.0 pence per share, having decided against a dividend a year ago. This represents a 2.6% increase from the 3.9 pence interim payout for 2019.

The momentum seen in residential markets in the first half of the year is expected to continue through the remainder of the year, driven by the favourable structural and economic trends.

"However, availability of labour and building products, as well as price inflation of housing activity may lead to a slowing in demand later in the year, particularly in North America," Tyman added.

Several activities are underway to improve productivity levels and increase capacity to meet both current and expected longer-term demand. This includes investments in additional urethane seals capacity in both the UK and North America.

Investments are also being made to increase capacity for hardware production, including new equipment and further inter-site line transfers to optimise the network and improve resilience.

"We are optimistic that the momentum seen in the first half will continue through the remainder of the year, however raw material and labour availability, as well as input cost inflation continue to be headwinds. Consequently, we expect full year adjusted operating profit will be slightly above the top end of the current range of analyst expectations," said Chief Executive Jo Hallas.

Shares in Tyman were down 1.6% to 443.00 pence each in London on Tuesday morning.

By Amrit Sahota; newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Tyman PLC 378.00 GBX 1.07 -

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