Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Hayward Tyler boosts profits but cautions on potential EU vote impact

Engineer's pre-tax trading profit rose 18% to £5.1mln on a 27% increase in revenue to £61.6mln
Hayward Tyler specialises in motors and pumps
The group lifted its dividend per share by 5% to 1.38p

Engineer Hayward Tyler Group PLC (LON:HAYT) reported higher profits but cautioned that EU referendum chaos could have an impact on its business.

Hayward said pre-tax trading profit rose 18% to £5.1mln on a 27% increase in revenue to £61.6mln. The group lifted its dividend per share by 5% to 1.38p.

Chief executive Ewan Lloyd-Baker said: "The group is well-placed to achieve the board's growth ambitions.

"Provided the recent political and economic uncertainty does not dramatically affect all our end markets, the board remains confident in the prospects for the business."

The group said its eponymous Hayward Tyler business achieved "a credible performance" and was "set to strengthen further."

It said the revitalisation of its newly acquired Peter Brotherhood (PB) steam turbine business was already achieving good progress with the brand resurrected and new orders won.

It spent £10.1mln on buying PB in October 2015 and invested £9.8mln in a "centre of excellence".

Shares in Hayward rose 1p, or 1.2%, to 84.5p in early London trading.

FinnCap said that overall, the results marked a step-change from the five-month inclusion of PB, albeit they were marginally lower than forecast.

The house broker said it was not changing its 2017 profit forecasts, with the expectation that profits will be second-half weighted due to the timing of orders.

It added: "The shares have dipped in value and we believe they are now excellent value.

"We maintain our 113p price target, seeing significant upside on a two-to-three year view."

Another broker, Cantor Fitzgerald, said Hayward's pre-tax profit was in line with its forecasts.

Cantor, which has a 'buy' rating and a 120p target price on the stock, said: "Hayward has made excellent progress in FY2016 and management is clearly delivering against its strategy."

--- Updates with broker comment, share price ---

View full HAYT profile View Profile

Hayward Tyler Group PLC Timeline

Related Articles

1510769053_3U2A9699.jpg
November 15 2017
Record Q1 earnings, recent financing bring Atlas the financial heft to make multiple acquisitions

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use