Tyman profit and revenue seen in line despite 'challenging' markets

Tyman said on Wednesday that full-year profit and revenue are set to be ahead of the previous year and in line with current market expectations despite "challenging" conditions as it benefits from recent acquisitions and the weaker pound versus the dollar.

In an update for 1 July to date, the supplier of engineered door and window components said reported revenue and adjusted operating profit would be in line with expectations, while leverage as at the end of December is expected to be below 2.0x adjusted EBITDA.

This is despite the company's markets remaining "challenging", with European and UK markets having weakened since the half year results in July, it said.

Chief executive Jo Hallas said: "For the full year we expect reported revenue and adjusted operating profit to be ahead of 2018, assisted by contributions from last year's acquisitions and the strength of the US dollar against sterling.

"Whilst our main markets remain challenging, we are pleased with the progress being made in our operational performance in North America, with both customer service levels and productivity showing an improving trend."

Liberum analyst Charlie Campbell said: "It should be very reassuring that expectations are unchanged, even though markets remain challenging. If the US market's enthusiasm for housebuilders is a reliable guide, US demand could see improvements in the new year. The shares continue to be lowly valued on 7x 2020 price-to-earnings ratio."

Canaccord Genuity also said the market should be reassured by the update. However, it added that it is still early days and there is "significant work still to do on improving and addressing the issues in the US and reducing leverage".

At 1300 GMT, the shares were up 8.7% at 224.50p.