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Tyman slides after lowering full-year profit expectations

Tyman will hold a capital markets event tomorrow for analysts and institutional investors focused on the group's AmesburyTruth Division
Door handle
As one door closes ... another also closes

Tyman PLC (LON:TYMN) shareholders were feeling the chill early Tuesday as the door-and-window-parts supplier issued a profit warning.

As profit warnings go, it was a mild one, with the company saying underlying profit before tax for the full-year would be slightly below the current range of analyst expectations, which spans from £69.6mln to £72.3mln.

READ: US acquisition opens doors for Tyman

Tyman blamed the shortfall largely on increased input costs and the previously reported temporary operation issues in the AmesburyTruth division in North America.

"For the full year we expect to report revenue and underlying profit before taxation ahead of 2016, assisted by contributions from the acquisitions of Giesse and Bilco, synergy benefits and favourable exchange rates,” said Louis Eperjesi, chief executive officer of Tyman

“AmesburyTruth has made further progress in its footprint project in 2017 with the operational issues in Mexico now being resolved and the Canadian market continues to improve. ERA has taken some share in what remains a flat to down market and has started operating from its new West Midlands facility.

"We expect to make further progress in 2018 with the market outlook in North America and Continental Europe remaining positive and will continue with our programme of self-help initiatives, including price recovery, to improve margins," he added.

READ: Tyman locks down Bilco in US$71mln deal

Liberum Capital is sticking with its 'hold' rating on the stock after the update.

"Constant currency sales growth appears to be slightly down in North America, up in the UK and slightly ahead for the rest of the world in the year to date, which compares to flat, +5% and +7% in the first half in those regions," it noted.

Shares in Tyman were down 6.75% at 328.25p in afternoon trading.

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Tyman Timeline

March 08 2017

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