11th Mar 2014 12:14
LONDON (Alliance News) - Building products business Tyman PLC Tuesday said it swung to a profit in 2013, following a strong performance from its businesses in North America
The company, which supplies components to the door and window industry, posted pretax profit of GBP794,000 for 2013, compared with a loss of GBP25.8 million a year earlier, as revenue rose to GBP298.1 million from GBP228.8 million.
The company operates across Europe, Australasia, Asia and the US through its four businesses: Amesbury, Grouphomesafe, Schlegel International and Truth Hardware.
Grouphomesafe, which operates in the UK, had a strong year, with revenue rising to GBP86.0 million from GBP73.3 million. On a like-for-like basis, revenues in the UK increased by 3.9% to GBP76.2 million from GBP73.4 million. Tyman said lower steel pricing through the year at its reinforcer business impacted reported revenues. However, it saw strong gains in volumes across all of its UK hardware businesses.
Schlegel International, which operates in Europe, saw revenue remain flat at GBP36.8 million as markets remained "subdued". Tyman said adverse weather conditions in the first quarter, general destocking of inventories and lack of end-user demand meant the sales environment was challenging.
Amesbury, operating in North America, did better, however, with revenue rising to GBP132.4 million from GBP118.6 million, boosted by strong sales of hardware and sealing products.
In addition Truth, which also operates in North America, had a strong first six months under Tyman ownership. Revenue rose to GBP42.9 million from GBP40.7 million a year earlier as the new build market in the region continues to recover. Truth was acquired in July for USD204.7 million.
Overall, Tyman said group gross margin rose to 33.2% from 32.7%.
Post the year end, Schlegel International completed the acquisition of Vedasil Brasil, a manufacturer and supplier of pile weatherseals in Brazil, for an undisclosed fee. Vedasil is based near Valinhos, 90 kilometres from Sao Paulo where Schlegel Brazil is located. Tyman intends to integrate the two businesses at the Valinhos site, under the Schlegel brand and with a management team drawn from both businesses.
"The acquisition of Truth, combined with the swift integration into Amesbury under a unified management team, provides the group with a strong platform for further growth in North America," Chief Executive Louis Eperjesis said in a statement. "Since the year end we have completed the acquisition of Vedasil Brasil, giving us a seal manufacturing platform in South America for the first time."
Tyman declared a final dividend for 4.50 pence, up from 3.50 pence, making a total dividend for the year of 6.00 pence, up from 4.50 pence in 2012.
The stock was trading at 274.25 pence Tuesday morning, up 10.25 pence or 3.9%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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