26th Jul 2016 07:45
LONDON (Alliance News) - Door and window components supplier Tyman PLC on Tuesday said it was optimistic about its prospects for growth in the US in the second half of its financial year, as it hiked its dividend for the first half by 13%.
Tyman posted revenue of GBP201.0 million for the six months ended June 30, up 15% from the GBP175.4 million reported for the same period a year earlier, which drove pretax profit up to GBP7.8 million from GBP7.7 million.
Tyman said it had continued to make improvements in margins in the first half, which meant its return on capital employed increased 113 basis points to 13.1% when compared with a year earlier.
In light of this, Tyman said it was offering an interim dividend of 3.00 pence per share, up 13% from the 2.66p per share it paid a year earlier.
The company pointed to a good performance in the US during the period, thanks to year-on-year growth in new-build permits and starts for single family homes, though it noted that conditions in the Canadian residential markets continued to be challenging.
Tyman said, provided that European markets continue their gradual recovery, its Schlegel International business should see further growth in the second half. The business saw revenue almost double to GBP38.9 million in the first half from GBP19.7 million a year earlier.
"The group delivered a strong trading performance in the first half with encouraging growth in North America, continued improvement in Europe and the Middle East - assisted by the initial contribution from Giesse - and a solid performance in the UK," said Chief Executive Louis Eperjesi.
Tyman purchased Italian aluminium windows and doors hardware manufacturer Giesse in March for EUR78.9 million.
"We remain optimistic about the prospects for growth in the United States in both residential and commercial markets for the second half of the year. Following the EU Referendum the outlook for UK and European markets in the near term is less certain; however Tyman remains well positioned to make progress, even in uncertain markets, and we will continue to deploy our self help strategy and look to exploit opportunities as they arise," Eperjesi added.
Shares in Tyman were down 0.4% at 278.00p on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Tyman