REG - Tyman PLC - AGM Trading Update

TymanAnnouncement

19/05/2022 07:00

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RNS Number : 0235M  Tyman PLC  19 May 2022

TYMAN PLC

Annual General Meeting Trading Update

Tyman plc ("Tyman" or the "Group"), a leading international supplier of
engineered components and access solutions to the construction industry,
provides an update on trading for the four months to 30 April 2022, ahead of
the Group's Annual General Meeting being held today at 10.30 a.m. at Great
Fosters Hotel, Stroude Road, Egham TW20 9UR.

Current trading and outlook

The Group's performance in the first four months of the year has been robust
against an exceptionally strong comparative period, with underlying demand and
the order book remaining strong. Consequently, the Board expects full year
adjusted operating profit to be in line with current market expectations*.

Group revenue increased 10% to £233 million on a like-for-like (LFL) basis
compared with the corresponding period in 2021, which had grown 14% LFL
against 2019. The growth in the period largely reflected the benefit of
pricing actions implemented to recover cost inflation. Volume growth continues
to be constrained by industrywide supply chain issues and labour shortages
that began to take effect from May 2021, although these issues are
progressively improving. Furthermore, in response to the war in Ukraine, the
Group stopped all sales to Russia and Belarus from February; these markets
accounted for 1% of Group revenues in 2021. Group reported revenue increased
12% over the period, reflecting the favourable impact of the weakening of
Sterling against the US dollar.

Commodity costs have continued to rise, and further price increases have been
implemented in all three divisions in early 2022. Further pricing actions will
be taken as necessary to recover inflation.

Underlying demand remains strong in the Group's core markets, with the order
book at 30 April 2022 significantly ahead of April 2021. US single-family
housing starts for Q1 are up 2% and repair and remodelling activity is up 12%.
Despite the recent rises in interest rates, this momentum is expected to
continue through the remainder of the year, with demand for housing continuing
to outstrip supply, good credit availability and elevated consumer savings
levels. The UK & Ireland RMI market has continued at historically high
levels, although is showing signs of softening, reflecting cost of living
pressures and reduced consumer confidence. However, the significant level of
consumer savings and backlog of activity should act as an underpin for the
rest of this year. Core European markets remain buoyant, supported by various
government stimulus measures.

Strategic progress

The Group has continued to make good progress with its Focus, Define, Grow
strategy. Various initiatives to expand capacity have been implemented, and
channel expansion initiatives have delivered further share gain in the
International division. The first phase of the ERP upgrade in North America
was successfully executed and work is now underway on the second phase.

Progress with the sustainability roadmap continues to gain pace, and it was
pleasing to see this recognised in recent rating agency scores, with MSCI
awarding an AA 'leader' grading, up from the previous A grading, and S&P
Global ranking Tyman 17(th) out of 89 building products peers.

 

Jo Hallas, Chief Executive Officer, commented:

"The Group's trading performance has been robust against an exceptionally
strong comparative period, in spite of ongoing supply chain and inflationary
pressures, and the impact of withdrawing sales to Russia.

Our order books are strong and we expect underlying market demand to remain
resilient for the rest of the year. Notwithstanding ongoing macroeconomic and
geopolitical uncertainty, housing market fundamentals remain positive. These
factors, combined with our strategic initiatives, underpin our confidence in
meeting market expectations for the full year and position the Group well to
deliver further profitable growth."

19 May 2022

Enquiries

 

 Tyman plc                                       investor.relations@tymanplc.com
 Jo Hallas - Chief Executive Officer
 Jason Ashton - Chief Financial Officer

 MHP Communications                              020 3128 8613
 Reg Hoare / Rachel Farrington / Matthew Taylor  tyman@mhpc.com

Notes to editors

Tyman (TYMN: LSE) is a leading international supplier of engineered
fenestration components and access solutions to the construction industry. The
company designs and manufactures products that enhance the comfort,
sustainability, security, safety and aesthetics of residential homes and
commercial buildings. Tyman's portfolio of leading brands serve their markets
through three divisions: Tyman North America, Tyman UK and Ireland and Tyman
International. Headquartered in London, the Group employs approximately 4,200
people with facilities in 16 countries worldwide. Further information is
available at www.tymanplc.com (http://www.tymanplc.com/) .

*Consensus of £93.9m. Analyst forecasts can be found at:

https://www.tymanplc.com/investor-relations/analysts-consensus
(https://www.tymanplc.com/investor-relations/analysts-consensus)

 

 

 

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