AGM Trading Update

RNS Number : 6473H

Tyman PLC

24 June 2013

 



For immediate release - 24 June 2013

Tyman plc

AGM Trading Update

Tyman plc ("Tyman" or the "Group"), the international supplier of components to the door and window industry, issues the following trading update ahead of its annual general meeting being held today at 3.00 p.m. at the offices of Pinsent Masons in Birmingham.

Update on proposed acquisition of Truth Hardware ("Truth")

The proposed acquisition of Truth from Melrose Industries plc was announced on 1 May 2013 and is presently proceeding through the Hart Scott Rodino review process with the Antitrust Division of the United States Department of Justice (the "HSR Review"). 

The HSR review is in the final stages of the initial waiting period and we expect to be in a position to complete the transaction in early July 2013.  A further announcement will be made following the conclusion of the HSR review.

Tyman intends to move from the Aim market to the Official List shortly following completion of the acquisition of Truth and a further announcement in this regard will be made in due course.

Divisional Review

Amesbury

In 2013 Amesbury has seen consistent increases in order intake and a significantly increased order bank compared with prior year, benefitting from the positive momentum in the North American new build market.  

Dollar revenues and operating profit are running ahead of prior year, although drop through performance in the year to date has been somewhat impacted by investment in the business ahead of the second half.

Grouphomesafe

After a slow first quarter, activity in the UK markets picked up in April and May and sterling revenues and operating profit in the year to date are ahead of 2012.

Schlegel International

European markets remain very difficult with previously resilient markets in Northern and Eastern Europe having a very slow start to 2013.  Revenues and profitability for Schlegel International in Europe are down significantly in the year to date. 

Australia has started 2013 well with strong growth in revenues and operating profit assisted by continued growth in new products and taking market share and our Brazilian business continues to perform well.

Outlook

First Half 2013

Overall in the first half, we anticipate that Group revenues from continuing operations will grow by around 4 per cent. and operating profit will be in line with prior year (excluding 2012 Peterlee provision releases).  This performance is consistent with our expectations for the year as whole, allowing for our usual seasonality.

Second Half 2013

Amesbury is expected to show further growth in revenues and operating profit in the remainder of 2013, with accelerating new build continuing to drive the residential market. 

Repair and remodelling, which constitutes the majority of the North American residential market, has historically lagged new build by between 18 months to two years and Amesbury remains well positioned to benefit from its eventual recovery.  The pending combination with Truth will enhance the Group's prospects in North America still further.

The Group still expects the overall UK market to contract modestly in 2013; however Grouphomesafe should see further growth in revenues and operating profit as a result of new customer wins, new product introductions and growing the Fab & Fix offering.

European markets are expected to remain very subdued for the year as a whole and accordingly in 2013 operating profit in Schlegel International is expected to be lower than in 2012.

Financial Position of Tyman

The Group's financial position remains strong following the completion of the equity issue associated with the Truth acquisition.  Other than the normal seasonal increase in working capital, there has been no significant change to the Group's financial position since the last year end.

Interim Results Announcement

The Company intends to announce its interim results on Friday 30 August 2013.

Louis Eperjesi, Chief Executive of Tyman, commented:

"We have had a satisfactory first half, consistent with our expectations for the year as a whole. We look forward to completing the acquisition of Truth in the near future and joining the main market thereafter."

Enquiries:

Tyman plc	www.tymanplc.com
Louis Eperjesi, Chief Executive	0207 976 8000
James Brotherton, Chief Financial Officer
Canaccord Genuity (NOMAD and Broker)	020 7523 8350
Bruce Garrow
Adam Miller
MHP	020 3128 8100
Reg Hoare
Ian Payne
Nick Hayns

 

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