25th Jul 2019 11:16
(Alliance News) - Doors and windows parts firm Tyman PLC on Thursday reported a steep drop in interim profit, in a performance below the company's expectations.
Pretax profit for the six months to June fell 24% to GBP11.0 million, though the adjusted figure was up 4% to GBP34.7 million.
Revenue increased 10% to GBP301.9 million, though the like-for-like figure declined 1%.
Despite the profit drop, Tyman has increased its interim dividend by 3% to 3.85 pence a share.
"While revenue and adjusted operating profit increased by 10% following four successful acquisitions in 2018, overall the first-half performance was below expectations, with organic revenue growth in SchlegelGiesse and ERA offset by a disappointing performance in AmesburyTruth," said Chief Executive Officer Jo Hallas.
"This reflected operational disruptions and customer losses arising from our North American footprint consolidation, as well as ongoing softness in our North American markets."
AmesburyTruth revenue rose 6%, but fell 3% like-for-like, to GBP187.4 million, with adjusted operating profit up 4%, but down 5% like-for-like, to GBP31.2 million.
Tyman said the US residential and commercial markets were both soft in the half, with the former AmesburyTruth's main focus.
ERA revenue was up 24%, and 1% like-for-like, to GBP53.0 million, with adjusted operating profit up 43%, and 13% like-for-like, to GBP6.9 million.
The UK doors and windows market contracted "significantly", Tyman said, but the business did well nonetheless.
SchlegelGiesse revenue rose 11%, and 4% like-for-like, to GBP61.5 million, with adjusted operating profit up 12%, and 2% like-for-like, to GBP7.6 million.
Markets were mixed for the business, Tyman said, with Italy, France, and Spain growing though Germany was broadly flat. China grew, it continued, though in the Middle East, Latin America, & Australia, things were softer.
"Since arriving in the spring, Jason and I have been focused on diagnosing the issues in AmesburyTruth. Over the next twelve to eighteen months our priorities will be to resolve these issues, drive organic performance and reduce net debt to our new lower target level," said Hallas.
"Although operating profit will be impacted by the North American footprint-related issues in the current financial year, given the fundamentals of the market and the business, I am confident the actions we are taking to address these, and our other near-term priorities, will position the business well for long-term sustainable value creation."
Tyman shares were 7.6% lower on Thursday morning in London at 218.89 pence each.
Related Shares:
Tyman