Corporate Update

28 January 2014

Hayward Tyler Group plc

("Hayward Tyler" or the "Company")

Corporate Update

Further to the re-registration of the business announced on 8 January, the Directors of Hayward Tyler (AIM: HAYT.L), the specialist engineering group, are pleased to announce that it has today declared the Company's inaugural interim dividend of 0.5 pence, which will be paid on 28 February 2014 to all shareholders on the register on 14 February 2014 (the ex-dividend date is 12 February 2014). The Directors also intend to propose at the Company's next Annual General Meeting that shareholders approve a final dividend to be paid no later than 31 August 2014.

Separately, the Directors are also pleased to report that the Company has received a credit approved offer from The Royal Bank of Scotland plc ("RBS") for new banking facilities on improved terms. Finalisation of all documentation is expected by mid February 2014.

Following completion the RBS facilities will deliver increased UK banking and borrowing facilities of £14.2 million against current facilities of £12.9 million. The new UK facilities are committed rather than being on demand, they extend the Company's debt maturity profile and the associated interest rates will also be lower than those of the current facilities. The Company has also received a credit approved offer of an additional US facility of USD2 million from the US subsidiary of RBS. Additionally, when completed, the RBS facilities will remove the requirement for the support by McNally Bharat Engineering ("MBE") of the Company's existing banking facilities, which will be repaid.

Separately, MBE have engaged finnCap, as the Company's broker, to sell its 41.69% stake in the Company. A further announcement will be made when the exercise has been completed.

Ewan Lloyd-Baker, CEO of Hayward Tyler, commented:

"The business continues to see significant improvements in the trading environment. The combination of the improved banking facilities and the increased capacity at our Luton plant will allow us to continue growing and servicing our order book while maintaining our commitment to a progressive dividend policy. We view the de-coupling of the loan from MBE as an important stepping stone in the Company's development. As we look towards the final two months of our financial year we are pleased to confirm that the Company continues to trade in line with market expectations."

Enquiries: