2nd Mar 2023 12:49
(Alliance News) - Door and window components supplier Tyman PLC posted revenue growth in 2022, but warned of industry headwinds in 2023.
Inflation, interest rates and housing market affordability are among the list of worries creating a "challenging" near-term outlook.
In 2022, Tyman's revenue rose 13% to GBP715.5 million from GBP635.7 million. Pretax profit declined by 4.1%, however, to GBP61.4 million from GBP64.0 million.
Cost of sales rose by 16% to GBP493.2 million from GBP424.0 million, while selling, general and administrative expenses were up 9.2% to GBP151.2 million from GBP138.5 million.
Nonetheless, Tyman lifted its final dividend by 6.7% to 9.5 pence per share from 8.9p. Its total dividend was 6.2% higher at 13.7p from 12.9p.
Tyman said its 2022 performance was at the "upper end of expectations despite [a] challenging macroeconomic backdrop".
Chief Executive Officer Jo Hallas said: "The group delivered a solid trading performance in 2022 against increasingly challenging market conditions. Our continued focus on share gains and improving our operational platform, together with successful implementation of pricing actions and strong cost control, enabled us to deliver full year adjusted operating profit at the upper end of market expectations.
"In 2023, pricing carry-over, self-help measures and benefits from strategic initiatives are expected to partially mitigate lower volumes and ongoing cost inflation as we navigate the near-term economic challenges. The underlying fundamentals of the markets the group operates in remain strong. Building on our portfolio of differentiated products, market-leading brands, deep customer relationships and sustainability credentials, together with our agile and resilient business model, Tyman is well positioned to take advantage of the positive structural industry growth drivers as housing market conditions improve."
Tyman warned the building materials industry's "near-term outlook remains challenging". It noted "high levels of inflation and interest rates are constraining housing market affordability and activity".
The company added: "The industry has limited forward visibility and it is difficult to quantify the amount of customer destocking that took place in the latter half of 2022, but the weakness in volumes experienced in the second half of 2022 is expected to continue at least during the first half of 2023, which will also be particularly impacted by a strong comparator."
Tyman shares were 3.3% lower at 248.02 pence each in London on Thursday afternoon.
By Eric Cunha, Alliance News news editor
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