Tyman reports 'better-than-expected' recovery after tough first half

Door and window component supplier Tyman reported a 17% like-for-like fall in revenue in its first half on Tuesday, to £254.1m, as its adjusted operating profit was 26% weaker on a like-for-like abscess at £31.3m.

The London-listed company said its adjusted operating margin was 160 basis points lower year-on-year for the six months ended 30 June at 12.3%, while its adjusted earnings per share were 25% weaker at 9.9p.

It said its leverage ratio was 1.8x for the period, down from 2.2x in the first half of 2019, while its return on capital employed was 190 basis points lower at 10.8%, compared to 12.7%.

Tyman said it had taken “decisive action” to preserve cash, leading to its strong cash conversion of 106%.

It also described its balance sheet as “robust”, with a liquidity headroom of £159m, and a relaxation of covenants agreed at December 2020 and June 2021.

The board declared no interim dividend, having paid an interim distribution of 3.9p in 2019.

“Covid-19 had a significant impact on the Group in the period,” said chief executive officer Jo Hallas.

“We have taken action to maintain a robust balance sheet and we believe that the crisis has demonstrated the resilience of the Tyman business model.”

Hallas said she was “encouraged” by the better-than-expected recovery since the easing of restrictions, although much uncertainty remained.

“Despite the crisis, we have continued to strengthen our base and progress our strategic growth initiatives.

“Our demonstrated resilience and inherent strengths, including market-leading brands, innovation capabilities and deep customer relationships, continue to position the group well to capitalise on opportunities arising as the global economy recovers and as we progressively emerge from a period of intense operational focus.”

At 0935 BST, shares in Tyman were up 1.98% at 175.4p.