12th Nov 2013 12:12
LONDON (Alliance News) - Engineering company Hayward Tyler Group PLC Tuesday reported that it swung to a profit in the first six months of its financial year and orders surged as its restructuring programme paid off, and said it will now look to pay its first ever dividend.
The maker of pumps and motors for the power generation and oil and gas markets reported a pretax profit of GBP1.8 million for the six months to end-September, from a loss of GBP131,000 a year earlier, as revenues jumped to GBP20.3 million from GBP14.6 million. Its order intake in the period rose 30% to GBP25.7 million from GBP19.8 million.
The company has been going through a restructuring, focusing on equipment that it makes itself that will then drive sales of maintenance and servicing. It has stepped up investment in research and development and improved the efficiency of its Luton plant.
"It is deeply satisfying to see the hard work of our turnaround programme starting to bear fruit, which means our focus can now move onto exploring avenues to significantly scale the business so that meaningful value can be returned to shareholders over the long-term," Chief Executive Ewan Lloyd-Baker said in a statement.
"As part of this commitment and as previously stated the company will therefore be seeking shareholder approval to put in place the mechanism by which we can pay an inaugural dividend," he added.
It said it will now seek shareholder approval to pay a dividend.
The company managed to cut its debt in the first half of the year, to GBP8.5 million from GBP10.4 million a year earlier. It generated net cash of GBP1.1 million compared with an outflow of GBP900,000 a year earlier.
Hayward Tyler shares last traded at 68.5 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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