9th Feb 2016 12:27
LONDON (Alliance News) - Tyman PLC Tuesday said it has changed the way it reports its financial results moving forward to better reflect the company's current organisational structure but said its earnings will be unaffected.
Tyman, the international supplier of building products, said the changes will come into effect when it publishes its financial results for 2015, with the analysis of each operational segment reflecting the company's current structure.
"Following the closure of the group's Barcelona pile weather-strip manufacturing facility announced in 2015, the board of Tyman has reviewed the appropriateness of the disclosure of the group's operating segments in the group's results' announcements and reports," said the company.
"With effect from publication of Tyman's results for the year ended December 31, 2015, the operating segmental analysis disclosure will reflect the group's current organisational structure," it added.
Tyman currently has three business segments. The company's UK and Ireland division operates as ERA, whilst its international business operates as Schlegel International. The last unit, Amesbury Truth, is Tyman's North American division.
Under the revised method of analysing each segment in its results, Tyman said the ERA division will continue to comprise of its UK and Ireland business and will also include its Ventrolla unit, which is Tyman's timber sash and casement window renovation department.
Schlegel International will remain responsible for all of Tyman's operations outside of the UK, Ireland and North America, but will now include the company's two UK seal manufacturing plants which were previously part of the ERA division.
"This change reflects the group's day to day operational and management structure in 2015, with the Schlegel International management team being responsible for each of Tyman's sealing businesses outside North America," said Tyman.
The North American unit, Amesbury Truth, will remain unchanged.
The other changes implemented by Tyman are based around how the company recognises its costs. Historically, all centrally incurred costs were allocated pro-rata to each Tyman division broadly on the basis of their proportional contribution to group revenue - but Tyman has now adjusted this.
Tyman said, moving forward, centrally incurred costs which are directly attributable to a division will be allocated or recharged to that division and all other centrally incurred costs will be disclosed in aggregate as a separate line item in the segmental analysis.
"The board believes that the revised operating segmental analysis and disclosure of central costs will allow analysts and investors a better understanding of the relative contribution of each of the divisions to the group as well as more accurately reflect the day to day operational structure of Tyman," said the company.
"Group earnings and earnings per share are unaffected by these revisions. The operating segments will be presented on the revised basis in the 2015 full year results, with the 2014 comparatives restated," Tyman added.
Tyman will release its 2015 full year results on March 8, 2016.
Tyman shares were trading down 1.8% to 255.00 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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