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Hayward Tyler's confidence driven by order intake

The renaissance of Hayward Tyler picked up pace last year and this year looks set to be another of good progress, with the company seeing plenty of opportunities in the energy sector.

The renaissance of specialist engineering group Hayward Tyler (LON:HAYT) picked up pace last year and this year looks set to be another of good progress.

Numbers for the 12 month period to the end of March 2014 compare very favourably with the preceding period, even though the comparative figures are for a 15-month period as a result of a change in the company's year end.

Revenue this time round was £43.2mln, up from £40.5mln in the 15 months to 31 March 2013, while profit before tax shot up to £3.8mln from £1.5mln.

Both numbers were slightly ahead of market expectations; the market has been profit before tax of £3.7mln on revenue of £42.4mln.

Order intake during the 12-month period was up 16% on a pro-rate basis to £46mln from £49.5mln in the 15-month period, giving the board confidence for the future.

The debt position has improved, with net debt down to £8.3mln from £8.5mln a year earlier; the reduction is not much in actual terms but what will please the company's bankers is the reduction in net debt as a proportion of underlying earnings (EBITDA); the ratio was down to 1.5:1 at the end of March 2014 from 2.6:1 (on a pro-rata basis) a year earlier.

With the balance sheet is better shape, the group paid out an inaugural dividend of 0.5p at the half-year stage and this has been followed up by a proposed final dividend of 0.75p which, if approved by shareholders, would mean a full-year dividend of 0.75p.

"The foundations have been laid for continuous improvement and ongoing growth across the group which will allow us to capitalise on the array of opportunities that are presenting themselves - particularly in the energy sector with the growth of cleaner fossil fired power generation in China and India, ongoing developments in the offshore oil and gas market, and the civil nuclear market," said Ewan Lloyd-Baker, Hayward Tyler's chief executive officer.

"We are further pleased that trading in the current financial period is in line with management's expectations and we therefore look forward to another year of good progress," he added.

Shares have tripled over the last year and were up 1.8% at 83.2p in early trading.

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