29th Jul 2015 09:01
LONDON (Alliance News) - Door and window components supplier Tyman PLC on Wednesday posted a sharp rise in pretax profit as its revenue received a boost from currency fluctuations and as it improved its gross and net margins in the first half.
Tyman said its pretax profit for the first half to the end of June was GBP7.7 million, up 54% from the GBP5 million a year earlier. Revenue increased by 5.1% in the period to GBP175.4 million from GBP167 million. Foreign exchange effects helps. In constant currencies, revenue rose by only 0.9%.
The company said its profitability had been improved in the half by progress made on its gross and net margins, which meant its return on capital employed in the first half improved by 170 basis points year-on-year to 11.8%.
On the back of the higher profit, Tyman hiked its interim dividend 33% to 2.66 pence from 2.00 pence.
Tyman said its performance in North America in the half was solid, despite subdued markets, as it delivered further synergies in the AmesburyTruth business and made progress on pricing. The UK market has been solid, with some positive signs emerging from new product launches, while European trading remains mixed, which has hit its Schlegel International business.
"The group has continued to progress in the first half of 2015 with encouraging growth in Underlying Operating Profit despite our key end markets of the United States and United Kingdom being relatively subdued. We have made further progress in improving our manufacturing efficiency and developing our product offering. This in turn has translated into a solid financial performance, demonstrating the resilience of our self-help model, with continued expansion in our margins and returns on capital," said Chief Executive Louis Eperjesi.
"We expect the UK market will return to growth in the second half of the year and ERA has a number of new products scheduled to come to market. European markets remain challenging; however we continue to make progress in our other international markets," he added.
Eperjesi said its AmesburyTruth and Schlegel businesses both have stronger order books in place year-on-year and said the company is "cautiously optimistic" on its full-year prospects.
Shares in Tyman were down 1.8% to 312.75 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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