10th Nov 2015 08:56
LONDON (Alliance News) - Doors and windows components supplier Tyman PLC on Tuesday said its underlying operating profit for 2015 is set to miss market expectations amid subdued activity over the summer months.
Tyman said its underlying operating profit for 2015 will be ahead year-on-year but will slightly miss market expectations.
The group said is constant currency revenue for the year has been broadly flat against 2014, though profitability has improved thanks to pricing and cost cuts.
Revenue, however, has been hit by subdued end markets highlighted in the first half, which continued into the second and its mid-year order book level has not been sustained.
North American markets for the company are still subdued, it said, in particular for single-family new-build completions and repair and remodelling work. Canadian markets were hit by the significant weakening in the Canadian dollar.
In addition, UK and Ireland repair, maintenance and improvement activity weakened further in the summer, and Tyman took a particular hit in its distribution business over the period. Conditions for its Schlegel International business in Europe remained challenging, it said, though some improvements have emerged in western and southern Europe and the Nordics.
"The period since the half year has seen continued subdued markets across the majority of our geographies however, despite little volume growth, our profitability and cashflow have continued to expand, demonstrating the resilience of our self help model," said Louis Eperjesi, Tyman's chief executive.
"While we expect these generally challenging market conditions will persist into 2016, we remain optimistic about the medium term prospects for markets in each of our Divisions and will continue to implement our market share, pricing and efficiency initiatives to improve and grow the business," Eperjesi added.
Tyman shares were down 4.0% to 248.75 pence on the news, one of the worst performers in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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