TIDMTYMN
RNS Number : 6427G
Tyman PLC
25 July 2019
TYMAN PLC
RESULTS FOR THE SIX MONTHSED 30 JUNE 2019
Tyman plc (TYMN.L) announces unaudited results for the six
months ended 30 June 2019.
Summary Group Results
LFL(1)
GBPm unless stated H1 2019 H1 2018 Change (adj*)
---------------------------------- -------- -------- --------- --------
Revenue 301.9 274.9 +10% (1)%
Adjusted Operating Profit* 41.9 38.2 +10% (4)%
Adjusted Operating Margin* 13.9% 13.9% Flat
Operating Profit 18.5 19.9 (7)%
Adjusted Profit before Taxation* 34.7 33.3 +4%
Profit before Taxation 11.0 14.5 (24)%
Adjusted EPS* 13.14p 13.11p Flat
Basic EPS 4.06p 5.35p (24)%
Dividend per share 3.85p 3.75p +3%
Leverage*(2) 2.21x 2.11x +0.10x
Return on Capital Employed* 12.7% 13.9% (122)bps
---------------------------------- -------- -------- --------- --------
(1) LFL = constant currency Like-for-Like (see APMs on page 44)
(2) Excluding IFRS 16 lease liabilities (see APMs on page 44)
* Alternative performance measures. In the opinion of the Board,
these "Adjusted" metrics (formerly "Underlying") provide useful
additional information to shareholders on the underlying
performance of the business. Further details can be found on page
44.
Highlights:
-- 10% growth in revenue and adjusted operating profit driven by 2018 acquisitions and currency
-- Like-for-like revenue declined 1% reflecting disappointing
performance at AmesburyTruth against solid performance in ERA and
SchlegelGiesse
-- Adjusted operating profit of GBP41.9m with adjusted operating margin flat at 13.9%
-- Ashland on track to generate US$5m annual synergy benefits from 2020
-- Acquired Y-cam, supporting development of new Smartware product pipeline
-- Interim dividend increased in line with progressive policy
-- New medium-term target leverage of 1.0x to 1.5x adjusted EBITDA
-- Market outlook mixed; savings coming through from footprint
rationalisation but offset by operational issues and customer
losses in near term
Jo Hallas, Chief Executive Officer, commented: "While revenue
and adjusted operating profit increased by 10% following four
successful acquisitions in 2018, overall the first half performance
was below expectations, with organic revenue growth in
SchlegelGiesse and ERA offset by a disappointing performance in
AmesburyTruth. This reflected operational disruptions and customer
losses arising from our North American footprint consolidation, as
well as ongoing softness in our North American markets.
Since arriving in the spring, Jason and I have been focused on
diagnosing the issues in AmesburyTruth. Over the next twelve to
eighteen months our priorities will be to resolve these issues,
drive organic performance and reduce net debt to our new lower
target level. Although operating profit will be impacted by the
North American footprint-related issues in the current financial
year, given the fundamentals of the market and the business, I am
confident that the actions we are taking to address these, and our
other near-term priorities, will position the business well for
long-term sustainable value creation."
25 July 2019
Enquiries
Tyman plc 020 7976 8000
Jo Hallas - Chief Executive Officer
Jason Ashton - Chief Financial Officer
Morten Singleton - Investor Relations
MHP Communications 020 3128 8100
Reg Hoare / Guy Featherstone / Nessyah Hart
Analyst and investor presentation
Tyman will host an analyst and investor presentation at 10.30
a.m. today, Thursday 25 July 2019, at the offices of MHP
Communications, 6 Agar Street, London, WC2N 4HN.
The presentation will be webcast at the Group's website
(www.tymanplc.com) and the audio conference call details are:
Toll number +44 (0) 333 300 0804
Toll-free number 0800 358 9473
Participant PIN 35437318#
Notes to editors
Tyman (TYMN: LSE) is a leading international supplier of
engineered door and window components and access solutions to the
construction industry. The Company designs and manufactures
products that help to improve the comfort, energy efficiency,
security and design aesthetics of residential homes and commercial
buildings. Tyman's portfolio of leading brands serve their markets
through three divisions: AmesburyTruth, ERA and SchlegelGiesse.
Headquartered in London, the Group employs approximately 4,200
people with facilities in 18 countries worldwide. Further
information is available at www.tymanplc.com.
OVERVIEW OF RESULTS
Tyman had a disappointing first half to the financial year, with
like-for-like (LFL) revenue and operating profit slightly lower
than H1 2018. However, the businesses acquired during 2018 have
made strong contributions to Group reported results.
North American markets slowed in the period and UK markets
remain relatively subdued, while European markets were broadly
flat. The overall outlook remains somewhat mixed.
Revenue for the period was GBP301.9 million (H1 2018: GBP274.9
million), an increase of 10% on a reported basis, but a decrease of
1% on a LFL basis, with volume declines offset by pricing and
surcharge actions. Reported revenue benefitted from contributions
from acquisitions, and by the relative weakness of Sterling
compared with H1 2018.
Adjusted operating profit improved by 10% on a reported basis to
GBP41.9 million (H1 2018: GBP38.2 million) but declined 4% on a LFL
basis, with growth at ERA and SchlegelGiesse being offset by a fall
in profitability at AmesburyTruth. The Group adjusted operating
margin was flat at 13.9% (H1 2018: 13.9%).
In addition to soft end markets, AmesburyTruth's performance was
impacted by operational disruption and customer losses relating to
the US footprint consolidation project. While the final moves of
the footprint consolidation project were completed in Q1, two
issues have arisen from the project: cost inefficiencies derived
from issues associated with the transfer of production facilities;
and customer losses related to both frustrations associated with
poor customer service levels and challenges with the transition to
a new type of door seal. Both of these issues are fixable and
actions are already underway to get the business back to our
expected levels of productivity and service quality.
The two largest businesses acquired during 2018, Ashland and Zoo
Hardware, have both performed well, with trading ahead of H1 2018.
The Group remains on track to deliver US$5m of Ashland annual
synergy benefits from 2020. Profab and Reguitti were a little
weaker than expected due to timing of projects at Profab and
competitive pressures at Reguitti.
Input costs, with the exception of steel, moderated in the
period, yielding some margin benefits. Price surcharges were used
to fully recover the cost of US tariffs.
Operational cash generation was 26% above H1 2018, primarily as
a result of lease payments now being included in financing cash
flows following adopting IFRS 16 (see note 17). Excluding the
impact of IFRS 16, operational cash generation was 3% higher than
H1 2018. Operating cash conversion in H1 2019 was 62.3%, or 52.1%
excluding the impact of IFRS 16 (H1 2018: 54.2%). This slight
underlying decline was principally due to increased working capital
levels.
ROCE fell by 122 bps to 12.7% (H1 2018: 13.9%) as a result of
the adoption of IFRS 16 as well as the reduction in like-for-like
adjusted operating profit and higher working capital build.
Excluding the impact of IFRS 16, ROCE was 13.1%.
Leverage at the period end of 2.21x (H1 2018: 2.11x) reflected
the extra debt taken on by the Group to fund the acquisitions made
in the second half of 2018. The Group is focused on reducing net
debt and expects to exit 2019 with a leverage below 2.0x.
An interim dividend of 3.85 pence per share, representing an
increase of 3%, will be paid on 6 September 2019 to shareholders on
the register at close of business on 2 August 2019. This is
consistent with the Group's progressive dividend policy.
Board Changes
Jo Hallas joined the Board as Chief Executive Officer on 1 April
this year and Jason Ashton joined the Board as Chief Financial
Officer on 9 May. Louis Eperjesi stepped down from the Board on 1
April 2019 and James Brotherton stepped down on 9 May 2019.
Outlook
The overall macro-economic backdrop continues to be uncertain in
the Group's core geographies of North America and the UK, and Tyman
enters the second half with a cautionary view. The primary focus
this half will be on resolving the issues relating to the US
footprint consolidation project and a focus on cash generation to
support a reduction in leverage.
The operational and customer disruption challenges at
AmesburyTruth are expected to impact both revenue and costs. The
planned cumulative benefits of the footprint project previously
communicated are now expected to be more than fully negated this
financial year by the disruption issues with a lesser impact
expected into 2020 as management actions take effect. Once these
issues are resolved we still expect the new footprint to yield
improved margin performance in the medium term.
OPERATIONAL REVIEW
AmesburyTruth Division
GBPm except where stated H1 2019 H1 2018 Change LFL
--------------------------- -------- -------- ------- -----
Revenue 187.4 176.6 +6% (3)%
Adjusted Operating Profit 31.2 30.0 +4% (5)%
Adjusted Operating Margin 16.7% 17.0%
--------------------------- -------- -------- ------- -----
Markets
The US residential and commercial markets were both soft in the
first half, with AmesburyTruth exposed much more to the former than
the latter.
Although housing completions increased by 3.0%, housing starts
declined 3.7% to 1.253 million units. Multi-family construction
showed modest growth, but was offset by a weaker performance in
single family construction in which the division has
proportionately higher exposure. Building permits also declined by
4.3%. New build activity in the US continues to be materially below
long run average levels on both absolute and per capita
measures.
US residential repair and remodelling markets were also softer
with the NAHB RMI index lower at 54 (H1 2018: 58). A combination of
weather and the carry-forward effect of higher mortgage rates in Q4
2018 influenced Q1 spend rates, but outlook indicators are
currently positive. Specifically, the LIRA index has improved by
2.9% from the year end.
The market in Canada contracted compared to H1 2018, with
housing starts down 4%, due in part to the discontinuation of
government energy rebate programmes in place for some regions in
2018.
Business performance and developments
Reported revenue of GBP187.4 million (H1 2018: GBP176.6 million)
for the Division was assisted by the incremental contribution from
Ashland and the relative weakness of Sterling against the US Dollar
in the period. The weaker Sterling increased reported revenue by
GBP11.0 million.
In addition to soft end markets, AmesburyTruth's performance was
impacted by operational disruption and customer losses relating to
the US footprint consolidation project. While the final moves of
the footprint consolidation project were completed in Q1, two
issues have arisen from the project: cost inefficiencies derived
from issues associated with the transfer of production facilities,
and customer losses related to both frustrations associated with
poor customer service levels and challenges with the transition to
a new type of door seal.
Production ramp up during the footprint transitions was slower
than expected in both Phase 1 of the project (hardware
manufacturing) and Phase 2 (seals manufacturing). This was due
largely to problems with recruitment and retention of key personnel
through the moves. The lack of a stable, experienced workforce led
to production inefficiencies and incremental costs associated with
excess material usage, high scrap levels and the temporary extra
staffing required to address the challenges.
These production issues ultimately led to customer losses for
the business. Phase 1 facilities are now fully stabilised with
significant productivity improvements being realised and customer
win-back activities underway. The Phase 2 facility in Statesville
is not yet operating at the service level performance we expect but
is making progress.
In the door seals product category, part of the transition from
manufacturing in Rochester to the new Statesville facility in late
2018 involved investing in new production process technology to be
able to launch a new type of door seal. While the new product
offers various advantages, significant efforts are required by
customers to test and transition their door systems, with the
result that the new product has not been adopted by customers as
well as anticipated. The business is working closely with customers
to improve adoption, whilst also working to reinstate capacity for
supply of the previous door seal product. In light of a reduction
in expected volumes in the medium term, we have adopted a more
cautious view on return on capital investments made in the new
seals product line and have recorded a non-cash charge of GBP5.3
million related to the write down of fixed assets and associated
costs.
The market share recovery expected in small accounts and
distributors following the change in distribution model has not yet
materialised and revenue in this segment declined 10% compared to
H1 2018. Half of this was driven by the impact of issues with the
US footprint consolidation and the other half due to the setup of
the new distribution model (a large stocking order in late 2018 and
some intentional product rationalisation). Without these effects,
performance was broadly flat with price growth offsetting market
softness.
Ashland, which was acquired in H1 2018, is performing in line
with our expectations, with revenue falling 1% due to softer market
conditions and adjusted operating profit increasing 13% as a result
of synergy benefits and production efficiencies. Synergy benefits
of US$1.8 million were realised in the period and the business is
on track to deliver US$5.0 million of annual synergies by 2020.
Revenue from the Division's access solutions business (Bilco)
was 4% ahead of H1 2018 and adjusted operating profit was 7% ahead,
benefitting from price increases and strong growth in roof hatch
sales to wholesale distributors and sidewalk door products despite
a weaker commercial construction market.
New product development
The division continues to focus on innovation, with products
launched in 2018 performing ahead of expectations and a strong
pipeline of new products due for release in H2 2019. The
Contemporary hardware range launched in 2018 provides a range of
upscale products to meet the growing demand for consistency of
design styling throughout the home. The STASIS constant force
window balance launched in 2018 is uniquely designed to be
interchangeable from right to left, helping smaller customers to
reduce SKU complexity in their business. Products due for release
in H2 2019 include the Pegasus combination operator and lock which
is an innovative product designed to combine opening/closing and
locking into one motion; a new and improved child safety device for
windows, SafeGard(TM)2R/2C; and two smoke vent products, one
designed to meet new energy standards and one with an
industry-leading sound rating. These products are expected to drive
revenue and margin improvements.
Leadership change
In early June, Bob Burns was appointed to lead AmesburyTruth,
replacing Jeff Graby who left the business to pursue other
interests. Bob had joined the Tyman Group through the acquisition
of Ashland Hardware. He has over 25 years of experience in the
building products industry, in leadership positions with both
window/door OEMs and with hardware manufacturing businesses. Bob
led the turnaround of the Ashland business under its private equity
ownership from 2013 to 2018, driving a significant improvement in
financial and operational performance.
Outlook
The US residential repair and remodelling markets are expected
to improve modestly in the second half, while both residential and
commercial new build construction is expected to be at best flat in
the near term. The primary focus in the second half will be on
resolving the issues relating to the US footprint consolidation
project and realising synergies from the integration of
Ashland.
The footprint consolidation moves were a pre-requisite to the
business being able to execute on its future organic growth plans.
While the physical transitions are complete and the footprint
project remains on track to deliver the $10m of benefits outlined
previously to the market, this will not be evident in near term
performance due to the repercussions outlined above. Once these
issues are resolved, we still expect the new footprint to yield
improved margin performance in the medium term.
ERA Division
GBPm except where stated H1 2019 H1 2018 Change LFL
--------------------------- -------- -------- ------- -----
Revenue 53.0 42.8 +24% +1%
Adjusted Operating Profit 6.9 4.8 +43% +13%
Adjusted Operating Margin 13.0% 11.3%
--------------------------- -------- -------- ------- -----
Markets
The UK market for doors and windows has contracted significantly
in H1 2019 compared to H1 2018. FENSA data for door and window
installations points to January to May being 8% down on the prior
year. This is driven by a contraction in RMI investment, which
constitutes the majority of the market. New build construction
continued to grow modestly.
Business performance and developments
The strong momentum against strategic objectives continued into
H1 2019 despite a difficult market backdrop, with further market
share gain in hardware sales and significant margin expansion.
LFL revenue increased by 1%, largely reflecting growth in
hardware sales to the distribution channel and the incremental
benefit of the 2018 price increase. On a reported basis, revenue
increased by 24%, assisted by incremental contributions from Zoo
Hardware and Profab which were acquired in H2 2018.
Savings from the 2018 footprint consolidation, lower input costs
and the benefit of the 2018 price increases meant that LFL adjusted
operating profit in the period grew 13% to GBP6.9 million, with
adjusted operating margin improving to 13% (H1 2018: 11%).
ERA continued to gain market share in hardware sales into OEM,
with sales declining 2%, in a market that was down circa 4%.
Hardware sales to the distribution channel significantly
outperformed the market, growing by 11% on a LFL basis in the
period. This was further assisted by the incremental contribution
from Zoo, the architectural hardware business acquired in May 2018,
whose revenue was 6% ahead of H1 2018 and whose adjusted operating
profit was 17% ahead, reflecting realisation of synergy benefits.
New product introductions have been well received, with sales from
new products growing 4% against H1 2018.
The sash window refurbishment business, Ventrolla, recorded a
decline in LFL revenue of 22% during the period, due to a lower
level of online enquiries seen following changes to the website in
2018. The new management team put in place in late 2018 has made
progress in reducing inefficiencies in the installation process and
continues to be focused on improving lead generation and conversion
rates.
Smartware
Smartware sales declined in the period as a result of a
third-party distribution agreement coming to an end in late 2018.
The ERA HomeGuard cloud-based alarm system which was brought to
market in 2018 has been well received. The ERA Installer Scheme was
launched in 2018 and creates a new channel for smart security
products that addresses a consumer 'do it for me' trend. The
network has expanded rapidly since launch, with 250 installers
trained to date, and an expected growth to 500 installers by
year-end.
On 18 February 2019, ERA completed the acquisition of Y-cam, a
smart home security business which operates a proprietary
cloud-based platform, together with a range of award-winning
security cameras, alarms and sensors. This acquisition provides ERA
with a market leading technology that will enable the provision of
value-added services such as security monitoring. Since
acquisition, the business has been integrated into ERA, and a
second generation range of smartware products is due for release in
H2 2019, harmonising ERA's existing smartware range onto the Y-cam
platform. This will be launched under the ERA Protect brand.
Access 360
The Division's commercial access businesses Bilco, Howe Green
and Profab were brought together with the launch of the Access 360
brand, providing a single go-to-market identity.
LFL revenue for Access 360 increased by 2% in the period,
slightly behind expectations, but reflective of the timing of
projects, with the large Crossrail project coming to an end and the
Battersea Power Station project slightly delayed. Profab, which was
acquired in August 2018, had a challenging first half due to
project timing, however order wins improved towards the end of the
period and a stronger second half is expected.
New product development
Sales of the new Surefire auto-fire multipoint door locking
system have been encouraging. Similarly, the new high-security
patio door lock is experiencing strong adoption with a number of
leading system houses. A new design-led range of premium
architectural levers is being launched in H2 which will drive
market penetration in the higher-end commercial sector. A strong
pipeline of leads for the new ERA lockdown emergency barricade
device are beginning to convert to sales. Sales of the Giesse
aluminium hardware range in the UK continue to grow strongly.
Outlook
Despite the subdued trends in residential RMI, which are
expected to persist over the balance of the year, and uncertainty
surrounding Brexit, ERA is well-placed to make further progress
through continued focus on market share gains, new product
introductions and management of costs and overheads.
SchlegelGiesse Division
GBPm except where stated H1 2019 H1 2018 Change LFL
--------------------------- -------- -------- ------- ----
Revenue 61.5 55.5 +11% +4%
Adjusted Operating Profit 7.6 6.8 +12% +2%
Adjusted Operating Margin 12.3% 12.2 %
--------------------------- -------- -------- ------- ----
Markets
SchlegelGiesse's markets presented a mixed picture over the
period. European markets were broadly flat, with market growth
continuing in Italy, France and Spain, albeit that momentum slowed
in Italy and Spain across the period. Germany was broadly flat and
Russia continued to decline. In China, the residential RMI market
continues to demonstrate strong growth. In the Middle East, Latin
America and Australia, the broader macro-economic conditions
continued to subdue the door and window markets.
Business performance
LFL revenue grew by 4% in H1 compared to prior year driven by
successful price increases as well as volume growth. Revenue of
GBP61.5m for the first half (H1 2018: GBP55.5m) was 11% ahead of
prior year on a reported basis, assisted by the acquisition of
Reguitti in August 2018. Operating profit grew by only 2% in H1 on
a LFL basis, reflecting operational gearing with continued
investment in research and development and overheads to support
growth. On a reported basis, operating profit for H1 of GBP7.6m was
12% higher than prior year (H1 2018: GBP6.8m) and benefited from
the first full reporting period of Reguitti. Adjusted operating
margin of 12.3% was broadly flat to prior year (H1 2018:
12.2%).
Overall SchlegelGiesse produced positive organic LFL growth in
Europe driven by strong performances in Russia, Italy, UK and
France. In Spain, while hardware sales declined as a result of
increasing low-cost competition, sales of seal products grew. Sales
declined in Germany due to some market share loss of our OEM
customers to lower cost imports.
Outside of Europe, SchlegelGiesse continued to perform strongly
in China with sales growth of 28%. This is driven by continued
expansion of the RMI distributor base, with a further 8 new
distributors placing orders in H1 2019, and strong underlying
market trends. The Middle East also delivered a strong performance,
despite difficult liquidity conditions. In Australia, sales
declined, in line with the challenging local residential housing
market.
Sales in Latin American markets declined in the first half of
the year as a result of the difficult macro-economic environment in
the region. There was some market share growth in Argentina and
margins continue to be well managed in this high inflationary
market. Despite the absence of sales growth in Brazil, the cost
base was managed down to achieve an improved operational
performance for H1.
The Reguitti integration continued to progress in the first half
of 2019, with synergy benefits from cross selling activities being
realised but offset by increased penetration by low-cost
competitors in the German and Italian markets.
New product development
The evolving trends for narrower window frames and a wider
expanse of glass continues to drive strong sales growth of
concealed hardware products. Sales of the CHIC concealed hinges and
the Supra and Ultra rosette-free handles grew by 31% in H1 2019.
SchlegelGiesse is continuing to invest in developing and expanding
its range of innovative products, with further product launches
planned later in 2019 and in 2020.
Outlook
SchlegelGiesse expect the markets to remain mixed in line with
the conditions seen in the first half, albeit with some dampening
of sentiment in Europe. Despite this, SchlegelGiesse continues to
execute on its plans to grow market share, with contributions from
new products and momentum in Reguitti expected in the second
half.
FINANCIAL REVIEW
Income statement
Revenue and profit
Reported revenue in the period increased by 10% to GBP301.9
million (H1 2018: GBP274.9 million), largely reflecting the impact
of acquisitions made in 2018 of GBP22.2 million and the favourable
impact of foreign exchange movements of GBP9.8 million. On a
like-for-like basis, revenue declined 1% compared to the prior
year, principally as a result of the customer losses associated
with the US footprint consolidation project of circa GBP5.2 million
and volume declines largely driven by market softness in the US and
UK of GBP6.8 million. The impact of these was partially offset by
pricing and surcharge actions of GBP10.1 million, which compensated
for cost inflation experienced in 2018.
Adjusted administrative expenses increased to GBP68.3 million
(H1 2018: GBP61.6 million), with GBP4.5 million of the increase due
to acquisitions and GBP1.5 million due to the impact of foreign
exchange.
Adjusted operating profit increased by 10% to GBP41.9 million
(H1 2018: GBP38.2 million) and declined 4% on a like-for-like
basis. The operational disruption and customer losses relating to
the US footprint consolidation project negatively impacted adjusted
operating profit by circa GBP4.7 million. Pricing actions of
GBP10.1 million, GBP3.0 million of which related to recovery of
tariffs, more than offset higher input costs and other inflationary
increases of GBP7.0 million. More favourable foreign exchange rate
movements increased reported operating profit by GBP1.7 million and
the adoption of IFRS 16 'leases' (see note 17) increased adjusted
operating profit by GBP0.8 million. The Group's adjusted operating
margin was flat at 13.9% (H1 2018: 13.9%).
Adjusted profit before taxation increased by 4.2% to GBP34.7
million (H1 2018: GBP33.3 million) and declined 5.7% on a
like-for-like basis. Reported profit before taxation decreased by
24.1% to GBP11.0 million (H1 2018: GBP14.5 million).
Materials and input costs
GBPm except where stated FY 2018 Materials(1) Average(2) Spot(3)
----------------------------- --------------------- ----------- --------
Aluminium (Euro) 20.8 (1.0)% (7.6)%
Polypropylene (Euro) 32.1 (1.3)% (1.4)%
Stainless steel (US) 47.8 +7.0% +16.3%
Zinc (US) 34.8 (15.1)% (20.3)%
Far East components (UK)(4) 37.7 (5.0)% (4.0)%
----------------------------- --------------------- ----------- --------
(1) FY 2018 materials cost of sales for raw materials,
components and hardware for overall category
(2) Average H1 2019 tracker price compared with average H1 2018 tracker price
(3) Spot tracker price as at 30 June 2019 compared with spot tracker price at 30 June 2018
(4) Pricing on a representative basket of components sourced from the Far East by ERA.
Raw material costs continued to moderate in H1 2019 with average
prices across all commodity categories except stainless steel lower
than H1 2018. Steel purchases in North America were higher than H1
2018 as a result of the direct and indirect impacts of US
tariffs.
Exceptional items
GBPm H1 2019 H1 2018
----------------------------------- -------- --------
Footprint restructuring - costs (3.3) (2.5)
Footprint restructuring - credits 0.6 0.2
----------------------------------- -------- --------
Footprint restructuring - net (2.7) (2.3)
M&A and integration (1.9) (1.4)
Write-off of inventory fair value
adjustments - (2.4)
Impairment charges (5.3) -
Other - 0.6
----------------------------------- -------- --------
(9.9) (5.5)
----------------------------------- -------- --------
Footprint restructuring
As announced in March 2015 and reported in previous periods,
footprint restructuring principally relates to directly
attributable costs incurred in the ongoing North American footprint
project. Costs attributable to footprint restructuring in the
period amounted to GBP3.3 million, with credits of GBP0.6 million
related to gains on the disposal of assets. The North American
footprint project is expected to conclude by 2020.
M&A and integration
M&A and integration costs of GBP1.9 million relate to costs
associated with the integration of businesses acquired in 2018,
predominantly Ashland, Zoo, and Reguitti.
Write-off of inventory fair value adjustments
The write-off of inventory fair value adjustments in 2018 of
GBP2.4 million related to non-cash adjustments relating to the IFRS
requirement that finished goods held in inventory must be revalued
to their market value on acquisition. This uplift in the book value
was considered to be of a one off nature and is of a magnitude that
would distort the adjusted trading result of acquisitions in the
period and was therefore classified as exceptional.
Impairment charges
Impairment charges relate to the write down of assets and
inventory associated with the new door seals product in North
America. There is uncertainty over the level of future cash flows
that will be generated to support these assets in the near term and
therefore these have been written down to their estimated
recoverable value. As a result of the magnitude and one off nature
of these charges, it is considered appropriate to draw this out as
exceptional so that the underlying performance of the business can
be understood.
Outlook
Exceptional expenses are now expected to be between GBP11
million and GBP15 million in the full year as a result of the write
down of assets associated with the new door seals product in North
America. The level of cash exceptionals remains unchanged.
Finance costs
Net finance costs increased to GBP7.5 million (H1 2018: GBP5.4
million), with GBP1.5 million relating to interest on lease
liabilities recognised as a result of adopting of IFRS 16.
Interest payable on bank loans, private placement notes and
overdrafts increased to GBP5.6 million (H1 2018: GBP4.8 million)
reflecting additional finance charges incurred on higher
borrowings.
Non-cash movements charged to net finance costs in the period
include amortisation of capitalised borrowing costs of GBP0.3
million (H1 2018: GBP0.7 million) and pension interest cost of
GBP0.1 million (H1 2018: GBP0.1 million).
Taxation
The Group reported an income tax charge of GBP3.1 million (H1
2018: GBP4.5 million), comprising a current tax charge of GBP3.3
million (H1 2018: GBP5.6 million) and a deferred tax credit of
GBP0.2 million (H1 2018: GBP1.1 million).
The adjusted tax charge was GBP9.1 million (H1 2018: GBP8.7
million) representing an effective adjusted tax rate of 26.2% (H1
2018: 26.1%). This is the Group's current best estimate of the
adjusted tax rate for the 2019 full year.
During the period, the Group paid corporation tax of GBP7.1
million (H1 2018:
GBP5.1 million), with the increase reflecting that a refund of
GBP1.2m was received in H1 2018, as well as timing of payments on
account.
Earnings per share
Basic earnings per share decreased by 24.2% to 4.06 pence (H1
2018: 5.35 pence). Adjusted earnings per share was in line with H1
2018 at 13.14 pence (H1 2018: 13.11 pence). Excluding the impact of
IFRS16, basic earnings per share decreased 17.2% and adjusted
earnings per share increased by 3.1%.
There is no material difference between these calculations and
the fully diluted earnings per share calculations.
Cash generation, funding and liquidity
Cash and cash conversion
GBPm H1 2019 H1 2018
----------------------------------------- -------- --------
Net cash generated from operations 16.3 17.0
Add: Pension contributions 0.5 0.4
Add: Income tax paid 7.1 5.1
Less: Purchases of property, plant and
equipment (5.5) (6.9)
Less: Purchases of intangible assets (0.4) (0.5)
Add: Proceeds on disposal of PPE 1.2 2.5
----------------------------------------- -------- --------
Operational Cash Flow after exceptional
cash costs 19.2 17.6
Exceptional cash costs 6.9 3.2
----------------------------------------- -------- --------
Operational Cash Flow 26.1 20.8
Less: Impact of IFRS 16 (4.7) -
----------------------------------------- -------- --------
Adjusted Operational Cash Flow 21.4 20.8
Less: Pension contributions (0.5) (0.4)
Less: Income tax paid (7.1) (5.1)
Less: Net interest paid (excluding IFRS
16) (6.0) (3.6)
Less: Exceptional cash costs (6.9) (3.2)
----------------------------------------- -------- --------
Free Cash Flow 0.9 8.5
----------------------------------------- -------- --------
Operational cash flow in the period increased by 25.5% to
GBP26.1 million, primarily as a result of applying IFRS 16 and the
reduction in capital expenditure, offset by the impact of a higher
working capital build. As a result of applying IFRS 16, lease
cashflows that were previously included in net cash generated from
operations are now included within financing activities. Adjusted
operational cash flow excluding the impact of IFRS 16 increased by
3.5% to GBP21.4 million (H1 2018: GBP20.8 million). This is after
adding back GBP6.9 million (H1 2018: GBP3.2 million) of exceptional
costs cash settled in the period, GBP4.7 million of which related
to settlement of costs associated with the North American footprint
project and were provided for in 2018.
Free cash flow in the period was significantly lower than H1
2018 at GBP0.9 million (H1 2018: GBP8.5 million) and was impacted
by the exceptional cash outflows, increased interest payments, and
higher levels of income tax payments on account.
Operating cash conversion in H1 2019 was 62.3% (H1 2018: 54.2%).
Adjusted operating cash conversion, excluding the impact of IFRS
16, was lower at 52.1%, impacted by the higher working capital
build.
Bank facilities and US private placement notes
Total facilities available to the Group, as at 30 June 2019,
were as follows:
Facility Maturity Currency Committed Uncommitted
----------------- --------- -------------- ---------- ------------
2018 Facility Feb 2024 Multicurrency GBP240.0m GBP70.0m
4.97 % USPP Nov 2021 US$ US$55.0m -
5.37 % USPP Nov 2024 US$ US$45.0m -
Other facilities Various EUR GBP1.0m -
----------------- --------- -------------- ---------- ------------
Liquidity
At 30 June 2019 the Group had gross outstanding borrowings of
GBP279.6 million (H1 2018: GBP265.8 million), cash balances of
GBP49.6 million (H1 2018: GBP45.7 million) and committed but
undrawn facilities of GBP56.1 million (H1 2018: GBP53.2 million) as
well as potential access to the uncommitted GBP70.0 million
accordion facility. Following the adoption of IFRS 16, the Group
has also recorded GBP61.8 million of lease liabilities on the
balance sheet at 30 June 2019 (see note 17).
Adjusted net debt at the period end was GBP230.0 million (H1
2018: GBP220.1million) reflecting the extra debt taken on by the
Group to fund the acquisitions of Profab and Reguitti made in H2
2018. Under IFRS, which reduces gross debt by the unamortised
portion of finance arrangement fees, net debt at 30 June 2019 was
GBP228.0 million (H1 2018: GBP218.0 million).
Covenant performance
Performance Headroom Headroom
At 30 June 2019 Test (1) (2) (2)
----------------- --------- ------------ --------- ---------
Leverage < 3.00x 2.21x 27.0m 26.4%
Interest Cover > 4.00x 8.88x 56.0m 55.0%
----------------- --------- ------------ --------- ---------
(1) Calculated covenant performance consistent with the Group's
banking covenant test (banking covenants set on a frozen GAAP basis
and not impacted by IFRS 16)
(2) The approximate amount by which adjusted EBITDA would need
to decline before the relevant covenant is breached
At the half year, the Group retained significant headroom on its
banking covenants. Leverage at the period end was 2.21x (H1 2018:
2.11x) reflecting the extra debt taken on by the Group to fund the
H2 2018 acquisitions. Leverage is projected to reduce over the
second half of the year to below 2.00x at the year end.
Interest cover at the period end was 8.88x (H1 2018: 10.54x),
reflecting the increased interest expense on higher drawdowns and
the increase in interest rates.
Balance sheet - assets and liabilities
Working capital
Acqns
GBPm FY 2018 Mvt (1) FX H1 2019
----------------------- -------- ----- ------ ---- --------
Inventories 105.3 10.2 - 0.4 115.9
Trade receivables 71.6 10.7 0.1 0.2 82.6
Trade payables (52.6) 2.3 (0.1) - (50.4)
----------------------- -------- ----- ------ ---- --------
Trade working capital 124.3 23.2 - 0.6 148.1
----------------------- -------- ----- ------ ---- --------
(1) The fair value of working capital items assumed at the acquisition date
Trade working capital at the half year, net of provisions, was
GBP148.1 million (H1 2018: GBP133.8 million; FY 2018: GBP124.3
million). The trade working capital build to the half year at
average exchange rates was GBP23.2 million (H1 2018: GBP19.3
million). The trade working capital unwind in H2 is expected to be
GBP25 million to GBP30 million.
The inventory build to the half year at average exchange rates
was GBP10.2 million
(H1 2018: GBP9.6 million). The increased inventory build is
driven by holding additional stocks to minimise disruption in North
America as part of the footprint project and holding excess stock
as a result of Brexit planning in the UK and Europe.
Trade receivables increased broadly in line with trading.
Of the year to date increase in trade working capital, GBP0.6
million related to exchange.
Capital expenditure
Gross capital expenditure decreased to GBP5.9 million (H1 2018:
GBP7.4 million) or 0.83x depreciation (H1 2018: 1.13x), as a result
of a reduction in capital investment projects following completion
of the significant site moves as part of the footprint project. The
expected capital expenditure level for the full year has been
reduced to between GBP12 million and GBP15 million.
Balance sheet - equity
Shares in issue
At 30 June 2019, the total number of shares in issue was 196.8
million (H1 2018: 196.8 million) of which 0.5 million shares were
held in treasury (H1 2018: 0.5 million).
Bonus share issue and capital reduction
As outlined in the 2018 annual report and approved by
shareholders at the AGM on 9 May 2019, a bonus share issue from
undistributable reserves and subsequent capital reduction was
completed on 4 June 2019. The entire share premium was cancelled
and transferred to retained earnings. This increased the level of
reserves available for distribution as at 30 June 2019 to GBP378.7
million.
Employee Benefit Trust purchases
At 30 June 2019, the EBT held 1.4 million shares (H1 2018: 1.5
million). During the period, the EBT purchased 0.8 million shares
in Tyman plc at a total cost of GBP2.0 million to satisfy certain
share awards vested in March 2019 as well as future obligations
under the Group's various share plans.
Other financial matters
Return on capital employed
ROCE fell by 122 bps to 12.7% (H1 2018: 13.9%) as a result of
the adoption of IFRS 16 as well as the reduction in like-for-like
adjusted operating profit and higher working capital build.
Excluding the impact of IFRS 16, ROCE was 13.1%.
Returns on Acquisition Investment
Original
Acquisition Acquisition ROAI at
Date Investment H1 2019(1)
-------------- ------------- ------------- ------------
Howe Green March 2017 GBP6.2m 17.0%
Ashland March 2018 US$102.4m 14.0%
Zoo Hardware May 2018 GBP18.7m 19.8%
Profab July 2018 GBP4.1m 18.4%
Reguitti August 2018 EUR16.2m 9.9%
-------------- ------------- ------------- ------------
(1) See Alternative Performance Measures on page 47
The integration of Howe Green is now complete and its run rate
ROAI after two years of ownership is 17.0%; exceeding the Group's
minimum target return threshold of 15%.
Ashland, Zoo Hardware, and Profab have continued to perform well
since acquisition and are on track to exceed the minimum target
return threshold. Ashland is expected to generate US$5m of annual
synergy benefits from 2020.
Reguitti synergies have been slower than expected to come
through. Integration of the sales force has now been completed and
cross-selling benefits are beginning to be realised.
Currency
Currency in the consolidated income statement
The principal foreign currencies that impact the Group's results
are the US Dollar, the Euro, the Australian Dollar and the Canadian
Dollar. In H1 2019, the Sterling was weaker against each of these
currencies, other than the Euro and Australian Dollar when compared
with the prevailing average exchange rates in H1 2018.
Translational exposure
Currency US$ Euro AUS$ CA$ Other Total
----------------------- -------- ------- ------ ------- ------ ------
% mvt in average rate (6)% 0.8% 2.7% (1.8)%
GBPm Revenue impact 10.9 (0.3) (0.1) 0.1 (1.4) 9.2
GBPm Profit impact
(1) 3.5 - - - (0.2) 3.3
1c decrease impact GBP210k GBP38k GBP1k GBP2k
(2)
----------------------- -------- ------- ------ ------- ------ ------
(1) Adjusted Operating Profit impact
(2) Defined as the approximate favourable translation impact of
a 1c decrease in the Sterling exchange rate
of the respective currency on the Group's Adjusted Operating
Profit
The net effect of currency translation caused revenue and
adjusted operating profit from ongoing operations to increase by
GBP9.2 million and GBP3.3 million respectively compared with H1
2018.
Transactional exposure
Foreign exchange hedges against the US Dollar and Renminbi
resulted in a small benefit to the operating profit of ERA in H1
2019 compared to H1 2018.
The Group's other transactional exposures generally benefit from
the existence of natural hedges and are immaterial.
New accounting standards
IFRS 16 - Leases
The Group has applied IFRS 16 for the first time in the period
ended 30 June 2019. As permitted by the standard, comparatives for
2018 have not been restated and the impact on net assets has been
recognised within retained earnings as at 1 January 2019.
IFRS 16 has resulted in almost all leases being recognised on
the balance sheet. An asset (the right to use the leased item) of
GBP62.0 million and a financial liability to pay rentals of GBP61.8
million have been recognised on the balance sheet. Instead of
recognising a rental expense over the term of the lease within
operating profit, a depreciation charge of GBP3.5 million has been
recognised on the right to use asset, and a finance charge of
GBP1.5 million recognised on the lease liability.
This has increased adjusted operating profit by GBP0.8 million
in the period as a result of a portion of the expense now being
included within finance expenses and has reduced profit before tax
by GBP0.7 million as a result of interest charges being higher at
the beginning of the lease term.
Cash flows associated with lease payments which were previously
classified as operating cash flows are now classified within
financing cash flows, which has increased operating cash inflows
and increased financing cash outflows by GBP4.7 million.
The Group's banking covenants are unaffected as these are set on
the basis of prevailing GAAP. For further details of the impact of
IFRS 16 on the Group, see note 17.
Principal risks and uncertainties
The Group's principal risks and uncertainties are identified on
pages 41 to 44 of the Group's Report and Accounts for the year
ended 31 December 2018, which is available at the Group's
website.
The Directors have reviewed the principal risks and
uncertainties facing Tyman, including those that would threaten its
business model, future performance, solvency or liquidity. The
following amendments have been made to the principal risks and
uncertainties for the period ended 30 June 2019:
Footprint rationalisation and loss of major customers
The risks associated with the footprint rationalisation and loss
of major customers were assessed as medium as at 31 December 2018.
In light of the operational disruption and customer losses in North
America in the period, the Directors have reassessed these
principal risks and have amended the risk rating to high.
Mitigation of this risk is the highest priority for the Board and
the Group is working to resolve the operational issues, improve
service levels, and reinstate supply of the legacy door seals
product.
Risks and uncertainties facing the Group
In the opinion of the Directors, the principal risks and
uncertainties as at the date of this report, consist of the
principal risks and uncertainties set out in the 2018 Report and
Accounts, with risk associated with footprint rationalisation and
loss of major customers now being considered a high level of
risk.
25 July 2019
Tyman plc
Condensed consolidated income statement
Six months Six months
ended ended Year ended
30 June 30 June 2018 31 December
2019 (unaudited) (unaudited) 2018 (audited)
Note GBPm GBPm GBPm
------------------------------------- ----- ------------------ -------------- ----------------
Revenue 3 301.9 274.9 591.5
Cost of sales (191.7) (175.1) (383.3)
------------------------------------- ----- ------------------ -------------- ----------------
Gross profit 110.2 99.8 208.2
Administrative expenses (91.7) (79.9) (157.7)
------------------------------------- ----- ------------------ -------------- ----------------
Operating profit 18.5 19.9 50.5
Analysed as:
Adjusted(1) operating profit 3 41.9 38.2 83.6
Exceptional items 4 (9.9) (5.5) (7.3)
Amortisation of acquired intangible
assets 9 (13.5) (12.8) (25.8)
------------------------------------- ----- ------------------ -------------- ----------------
Operating profit 18.5 19.9 50.5
Finance income 5 - 0.2 0.4
Finance costs 5 (7.5) (5.6) (12.0)
------------------------------------- ----- ------------------ -------------- ----------------
Net finance costs 5 (7.5) (5.4) (11.6)
------------------------------------- ----- ------------------ -------------- ----------------
Profit before taxation 11.0 14.5 38.9
Income tax charge 6 (3.1) (4.5) (12.6)
Profit for the period 7.9 10.0 26.3
------------------------------------- ----- ------------------ -------------- ----------------
Basic earnings per share 7 4.06p 5.35p 13.76p
Diluted earnings per share 7 4.04p 5.31p 13.66p
------------------------------------- ----- ------------------ -------------- ----------------
Non-GAAP alternative performance
measures(1)
Adjusted(1) operating profit 41.9 38.2 83.6
------------------------------------- ----- ------------------ -------------- ----------------
Adjusted(1) profit before
taxation 34.7 33.3 72.7
------------------------------------- ----- ------------------ -------------- ----------------
Basic Adjusted earnings per
share 7 13.14p 13.11p 27.68p
------------------------------------- ----- ----------------
Diluted Adjusted earnings
per share 7 13.10p 13.01p 27.47p
------------------------------------- ----- ------------------ -------------- ----------------
(1) Before amortisation of acquired intangible assets, deferred
taxation on amortisation of acquired intangible assets, impairment
of goodwill, exceptional items, gains and losses on the fair value
of derivative financial instruments, amortisation of borrowing
costs, and the associated tax effect. See definitions on page 44
for non-GAAP alternative performance measures.
Tyman plc
Condensed consolidated statement of comprehensive income
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
GBPm GBPm GBPm
------------------------------------------- ------------------ ------------------ ----------------
Profit for the period 7.9 10.0 26.3
------------------------------------------- ------------------ ------------------ ----------------
Other comprehensive (expense)/income
Items that will not be reclassified
to profit or loss
Remeasurements of post-employment
benefit obligations (0.4) - 0.9
Total items that will not be reclassified
to profit or loss (0.4) - 0.9
------------------------------------------- ------------------ ------------------ ----------------
Items that may be reclassified
subsequently to profit or loss
Exchange differences on translation
of foreign operations 1.0 4.9 15.3
Effective portion of changes in
value of cash flow hedges 0.2 (0.1) -
Total items that may be reclassified
to profit or loss 1.2 4.8 15.3
------------------------------------------- ------------------ ------------------ ----------------
Other comprehensive income for
the period, net of tax 0.8 4.8 16.2
------------------------------------------- ------------------ ------------------ ----------------
Total comprehensive income for
the period 8.7 14.8 42.5
------------------------------------------- ------------------ ------------------ ----------------
Items in the statement above are disclosed net of tax. The
income tax relating to each component of other comprehensive income
is disclosed in note 6.
Tyman plc
Condensed consolidated statement of changes in equity
Share Share Other Treasury Hedging Translation Retained Total
capital premium reserve(1) reserve reserve reserve earnings equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
At 1 January 2018
(audited) 8.9 81.4 8.9 (2.8) (0.3) 56.2 212.2 364.5
Change in accounting
policy(2) - - - - - - (0.7) (0.7)
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
At 1 January 2018
(audited) 8.9 81.4 8.9 (2.8) (0.3) 56.2 211.5 363.8
Total comprehensive
income/(expense) - - - - (0.1) 4.9 10.0 14.8
Profit for the period - - - - - - 10.0 10.0
Other comprehensive
income/(expense) - - - - (0.1) 4.9 - 4.8
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
Transactions with
owners 0.9 50.8 - (2.1) - - (15.5) 34.1
Share-based payments(3) - - - - - - 0.7 0.7
Dividends paid - - - - - - (15.1) (15.1)
Issue of shares 0.9 50.8 - - - - - 51.7
Issue of own shares
from EBT - - - 1.1 - - (1.1) -
Purchase of own shares
for EBT - - - (3.2) - - - (3.2)
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
At 30 June 2018
(unaudited) 9.8 132.2 8.9 (4.9) (0.4) 61.1 206.0 412.7
Total comprehensive
income - - - - 0.1 10.3 17.2 27.6
Profit for the period - - - - - - 16.3 16.3
Other comprehensive
income - - - - 0.1 10.3 0.9 11.3
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
Transactions with
owners - - (8.9) - - - 2.3 (6.6)
Share-based payments(3) - - - - - - 0.6 0.6
Dividends paid - - - - - - (7.3) (7.3)
Transfer of merger
reserve(1) - - (8.9) - - - 8.9 -
Issue of own shares
from EBT - - - - - - 0.1 0.1
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
At 31 December 2018
(audited) 9.8 132.2 - (4.9) (0.3) 71.4 225.5 433.7
Change in accounting
policy(4) - - - - - - 2.4 2.4
--------- --------- ------------ --------- --------- ------------ ----------
At 1 January 2019
(unaudited) 9.8 132.2 - (4.9) (0.3) 71.4 227.9 436.1
Total comprehensive
income - - - - 0.2 1.0 7.5 8.7
Profit for the period - - - - - - 7.9 7.9
Other comprehensive
income/(expense) - - - - 0.2 1.0 (0.4) 0.8
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
Transactions with
owners - (132.2) - 0.6 - - 114.1 (17.5)
Share-based payments(3) - - - - - - 0.6 0.6
Dividends paid - - - - - - (16.1) (16.1)
Capital reduction - (132.2) - - - - 132.2 -
Issue of own shares
from EBT - - - 2.6 - - (2.6) -
Purchase of own shares
for EBT - - - (2.0) - - - (2.0)
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
At 30 June 2019
(unaudited) 9.8 - - (4.3) (0.1) 72.4 349.5 427.3
------------------------ --------- --------- ------------ --------- --------- ------------ ---------- --------
(1) The other reserve related to a merger reserve which arose on
the acquisition of a business which was subsequently disposed. The
reserve was transferred to retained earnings on the basis that it
is available for distribution
(2) The change in accounting policy at 1 January 2018 related to
adoption of new accounting standards IFRS 15 and IFRS 9.
(3) Share-based payments include a tax debit of GBPNil (six
months ended 30 June 2018: GBPNil; year ended 31 December 2018:
GBP0.1 million)
(4) The change in accounting policy at 1 January 2019 relates to
adoption of new accounting standard IFRS 16. See note 17.
Tyman plc
Condensed consolidated balance sheet
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
Note GBPm GBPm GBPm
----------------------------------- ----- ------------------ ------------------ ----------------
TOTAL ASSETS
Non-current assets
Goodwill 8 385.9 364.0 382.1
Intangible assets 9 123.4 134.1 134.8
Property, plant and equipment 10 70.3 74.6 77.0
Right of use assets 17 62.0 - -
Financial assets at fair value
through profit or loss 13 1.2 1.1 1.2
Deferred tax assets 6 17.1 14.0 17.4
----------------------------------- ----- ------------------ ------------------ ----------------
659.9 587.8 612.5
Current assets
Inventories 116.1 103.5 105.3
Trade and other receivables 100.8 91.9 87.3
Cash and cash equivalents 49.6 45.7 51.9
Derivative financial instruments 13 0.4 0.3 0.3
----------------------------------- ----- ------------------ ------------------ ----------------
266.9 241.4 244.8
TOTAL ASSETS 926.8 829.2 857.3
----------------------------------- ----- ------------------ ------------------ ----------------
LIABILITIES
Current liabilities
Trade and other payables (91.2) (84.0) (87.0)
Derivative financial instruments 13 - (0.1) -
Borrowings 11 - (2.3) (1.5)
Lease liabilities 17 (5.9) - -
Current tax liabilities (4.0) (4.0) (7.4)
Provisions (2.4) (5.6) (7.0)
----------------------------------- ----- ------------------ ------------------ ----------------
(103.5) (96.0) (102.9)
Non-current liabilities
Borrowings 11 (277.6) (261.5) (259.2)
Lease liabilities 17 (55.9) - -
Derivative financial instruments 13 (0.1) (0.4) (0.3)
Deferred tax liabilities (38.6) (34.3) (38.2)
Retirement benefit obligations (11.1) (10.9) (10.8)
Provisions (8.1) (10.6) (8.2)
Other payables (4.6) (2.8) (4.0)
----------------------------------- ----- ------------------ ------------------ ----------------
(396.0) (320.5) (320.7)
TOTAL LIABILITIES (499.5) (416.5) (423.6)
----------------------------------- ----- ------------------ ------------------ ----------------
NET ASSETS 427.3 412.7 433.7
----------------------------------- ----- ------------------ ------------------ ----------------
EQUITY
Capital and reserves attributable
to owners of the Company
Share capital 12 9.8 9.8 9.8
Share premium 12 - 132.2 132.2
Other reserves - 8.9 -
Treasury reserve (4.3) (4.9) (4.9)
Hedging reserve (0.1) (0.4) (0.3)
Translation reserve 72.4 61.1 71.4
Retained earnings 349.5 206.0 225.5
TOTAL EQUITY 427.3 412.7 433.7
----------------------------------- ----- ------------------ ------------------ ----------------
Tyman plc
Condensed consolidated cash flow statement
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
Note GBPm GBPm GBPm
-------------------------------------------- ----- ------------------ ------------------ ----------------
Cash flow from operating activities
Profit before taxation 3 11.0 14.5 38.9
Adjustments 15 36.4 27.5 53.6
Changes in working capital(1)
:
Inventories (10.2) (9.5) (4.5)
Trade and other receivables (13.3) (14.3) (2.8)
Trade and other payables 4.7 5.9 3.3
Provisions utilised (4.7) (1.6) (2.5)
Pension contributions (0.5) (0.4) (1.1)
Income tax paid (7.1) (5.1) (12.3)
Net cash generated from operations 16.3 17.0 72.6
-------------------------------------------- ----- ------------------ ------------------ ----------------
Cash flow from investing activities
Purchases of property, plant
and equipment 10 (5.5) (6.9) (15.7)
Purchases of intangible assets 9 (0.4) (0.5) (1.6)
Proceeds on disposal of PPE 1.2 2.5 5.3
Acquisitions of subsidiary undertakings(2) 14 (0.8) (87.1) (106.4)
Interest received - - 0.1
Net cash used in investing activities (5.5) (92.0) (118.3)
-------------------------------------------- ----- ------------------ ------------------ ----------------
Cash flow from financing activities
Interest paid (7.4) (3.6) (9.1)
Dividends paid (16.1) (15.0) (22.4)
Net proceeds on issue of shares 12 - 50.3 50.4
Purchase of own shares for EBT (2.0) (3.2) (3.2)
Refinancing costs paid (0.3) (2.0) (2.0)
Drawdown of revolving credit
facility 25.4 243.0 272.7
Repayments of revolving credit
facility (8.7) (190.4) (229.6)
Principal element of lease payments (3.2) - -
Net cash generated (used in)/from
financing activities (12.3) 79.1 56.8
-------------------------------------------- ----- ------------------ ------------------ ----------------
Net (decrease)/increase in cash
and cash equivalents (1.5) 4.1 11.1
Exchange losses on cash (0.8) (1.0) (1.8)
Cash and cash equivalents at
start of period 51.9 42.6 42.6
Cash and cash equivalents at
the end of period 49.6 45.7 51.9
-------------------------------------------- ----- ------------------ ------------------ ----------------
(1) Excluding the effects of acquisition and exchange differences on consolidation.
(2) Net of cash acquired.
Tyman plc
Notes to the condensed consolidated financial statements
1. General information
Tyman is a leading international supplier of engineered door and
window components and access solutions to the construction
industry.
Tyman is a public limited company listed on the London Stock
Exchange, incorporated and domiciled in England and Wales. The
address of the Company's registered office is 29 Queen Anne's Gate,
London, SW1H 9BU.
These Interim Financial Statements were approved for issue on 25
July 2019 and have been reviewed, not audited, by PwC, the Group's
auditors.
These Interim Financial Statements do not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2018 were
approved by the Board of Directors on 5 March 2019 and delivered to
the Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under Section 498 of
the Companies Act 2006.
The financial information for the year ended 31 December 2018 is
extracted from the Group's consolidated financial statements for
that year.
2. Accounting policies and basis of preparation
2.1 Basis of preparation
The Interim Financial Statements have been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Conduct Authority and with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the
European Union. The Interim Financial Statements should be read in
conjunction with the annual financial statements for the year ended
31 December 2018, which have been prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union.
2.2 Changes in accounting policies and disclosures
2.2.1 New accounting standards effective in period
Certain new or amended standards became applicable for the
current reporting period and the Group changed certain accounting
policies and made adjustments to opening balances as at 1 January
2019 as a result of adopting IFRS 16 'Leases'.
The adoption of IFRS 16 had a material impact on the Group's
financial statements, and the impact of the adoption of this
standard is disclosed in note 17.
The other standards that became applicable in the period did not
impact on the Group's accounting policies and did not require
retrospective adjustments.
2. Accounting policies and basis of preparation (continued)
2.2.2 New, revised and amended accounting standards not yet
effective
None of the standards which have been issued by the IASB but are
not yet effective are expected to have a material impact on the
Group.
2.3 Going concern
The Directors are confident, based on current financial
projections and the banking facilities available to the Group, and
after considering sensitivities, that the Company and the Group
have sufficient resources for their operational needs that will
enable the Group to remain in compliance with its financial
covenants in its bank facilities for at least the next twelve
months. Accordingly, the Directors continue to adopt the going
concern basis in preparing the Interim Financial Statements.
2.4 Accounting policies
The accounting policies adopted are consistent with those of the
previous financial year, except for the changes made on adoption of
IFRS 16. The changes to accounting policies are described in note
17. Taxes on income in the interim periods are accrued using tax
rates that would be applicable to expected total annual profit or
loss.
2.5 Accounting judgements and estimates
The preparation of financial statements requires management to
exercise judgement in applying the Group's accounting policies. It
also requires the use of certain critical accounting estimates and
assumptions that affect the reported amounts of assets,
liabilities, income and expenses. Actual amounts may differ from
these estimates.
In preparing these Interim Financial Statements, the significant
judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the
same as those applied to the consolidated financial statements for
the year ended 31 December 2018, with the exception of judgements
made in applying IFRS 16. See note 17 for further details.
3. Segment reporting
The reporting segments reflect the manner in which performance
is evaluated and resources are allocated. The Group operates
through three clearly defined divisions: AmesburyTruth, ERA and
SchlegelGiesse.
AmesburyTruth comprises all the Group's operations within the
US, Canada and Mexico. ERA comprises the Group's UK and Ireland
hardware business, together with Ventrolla, Tyman Sourcing Asia,
Howe Green, Bilco UK, and Profab. During the period, ERA acquired
Y-cam and this business is now included in the ERA reporting
segment. SchlegelGiesse comprises all the Group's other businesses
outside of the US, Canada and Mexico as well as the two UK seal
manufacturing plants.
Centrally incurred functional costs that are directly
attributable to a Division are allocated or recharged to the
Division. All other centrally incurred costs and eliminations are
disclosed as a separate line item in the segment analysis.
Each reporting segment broadly represents the Group's
geographical focus, being the North American, UK and international
operations respectively. In the opinion of the Board, there is no
material difference between the Group's operating segments and
segments based on geographical splits. Accordingly, the Board does
not consider geographically defined segments to be reportable. For
completeness, the Group discloses certain financial data for
business carried on in the UK that is not accounted for in the ERA
Division in note 3.1.
The following tables present Group revenue and profit
information for the Group's reporting segments, which have been
generated using the Group accounting policies, with no differences
of measurement applied, other than those noted above.
3.1 Revenue
Six months Six months
ended ended Year ended
30 June 2019 30 June 31 December
(unaudited) 2018 (unaudited) 2018 (audited)
GBPm GBPm GBPm
---------------- -------------- ------------------ ----------------
AmesburyTruth 187.4 176.6 378.6
ERA 53.0 42.8 95.7
SchlegelGiesse 61.5 55.5 117.2
Total revenue 301.9 274.9 591.5
----------------- -------------- ------------------ ----------------
Included within the SchlegelGiesse segment is revenue
attributable to the UK of GBP10.2 million (six months ended 30 June
2018: GBP9.5 million; year ended 31 December 2018: GBP18.2
million).
3. Segment reporting (continued)
3.2 Profit before taxation
Six months Six months
ended ended Year ended
30 June 2019 30 June 2018 31 December
(unaudited) (unaudited) 2018 (audited)
Note GBPm GBPm GBPm
--------------------------- ----- -------------- -------------- ----------------
AmesburyTruth 31.2 30.0 62.3
ERA 6.9 4.8 12.5
SchlegelGiesse 7.6 6.8 15.0
--------------------------- ----- -------------- -------------- ----------------
Operating segment result 45.7 41.6 89.8
Centrally incurred costs (3.8) (3.4) (6.2)
--------------------------- ----- -------------- -------------- ----------------
Adjusted operating profit 41.9 38.2 83.6
Exceptional items 4 (9.9) (5.5) (7.3)
Amortisation of acquired
intangible assets 9 (13.5) (12.8) (25.8)
--------------------------- ----- -------------- -------------- ----------------
Operating profit 18.5 19.9 50.5
Net finance costs 5 (7.5) (5.4) (11.6)
Profit before taxation 11.0 14.5 38.9
--------------------------- ----- -------------- -------------- ----------------
4. Exceptional items
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
GBP'm GBP'm GBP'm
----------------------------------- ------------------ ------------------ ----------------
Footprint restructuring - costs (3.3) (2.5) (4.8)
Footprint restructuring - credits 0.6 0.2 0.9
----------------------------------- ------------------ ------------------ ----------------
Footprint restructuring - net (2.7) (2.3) (3.9)
M&A and integration - costs (1.9) (1.4) (1.7)
M&A and integration - credits - - -
----------------------------------- ------------------ ------------------ ----------------
M&A and integration - net (1.9) (1.4) (1.7)
Write-off of inventory fair value
adjustments - (2.4) (2.5)
Loss on disposal of business - - (0.1)
Impairment charges (5.3) - -
Other - 0.6 0.9
(9.9) (5.5) (7.3)
----------------------------------- ------------------ ------------------ ----------------
Footprint restructuring
As announced in March 2015 and reported in previous periods,
footprint restructuring principally relates to directly
attributable costs incurred in the ongoing North American footprint
project. Costs attributable to footprint restructuring in the
period amounted to GBP3.3 million, with credits of GBP0.6 million
related to gains on the disposal of assets. The North American
footprint project is expected to conclude by 2020.
4. Exceptional items (continued)
M&A and integration
M&A and integration costs of GBP1.9 million relate to costs
associated with the integration of businesses acquired in 2018,
predominantly Ashland, Zoo, and Reguitti.
Write-off of inventory fair value adjustments
The write-off of inventory fair value adjustments in 2018 of
GBP2.4 million related to non-cash adjustments relating to the IFRS
requirement that finished goods held in inventory must be revalued
to their market value on acquisition. This uplift in the book value
was considered to be of a one off nature and is of a magnitude that
would distort the underlying trading result of acquisitions in the
period and was therefore classified as exceptional.
Impairment charges
Impairment charges relate to the write down of assets and
inventory associated with the slower than expected uptake of the
new door seal product in North America. There is uncertainty over
the level of future cash flows that will be generated to support
these assets in the near term and therefore these have been written
down to their estimated recoverable value. As a result of the
magnitude and one off nature of this write down, it is considered
appropriate to draw this out as exceptional so that the underlying
performance of the business can be understood.
Other
In the year ended 31 December 2018, other includes the release
of excess legal provisions in connection with IP litigation and
receipt of settlement monies from a longstanding raw material class
action.
These items are regarded by the Group as exceptional as they are
significant and non-recurring in nature.
5. Finance income and costs
Six months Six months
ended ended Year ended
30 June 2019 30 June 31 December
(unaudited) 2018 (unaudited) 2018 (audited)
GBPm GBPm GBPm
----------------------------------------- -------------- ------------------ ----------------
Finance income
Interest income from short term
bank deposits - - 0.1
Gain on revaluation of fair value
hedge - 0.2 0.3
- 0.2 0.4
----------------------------------------- -------------- ------------------ ----------------
Finance costs
Interest payable on bank loans,
private placement notes and overdrafts (5.6) (4.8) (10.7)
Interest on lease liabilities (1.5) - -
Amortisation of borrowing costs (0.3) (0.7) (1.0)
Pension interest cost (0.1) (0.1) (0.3)
(7.5) (5.6) (12.0)
----------------------------------------- -------------- ------------------ ----------------
Net finance costs (7.5) (5.4) (11.6)
----------------------------------------- -------------- ------------------ ----------------
6. Taxation
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
GBPm GBPm GBPm
--------------------------------------- ------------------ ------------------ ----------------
Current taxation
Current tax on profit for the
period (3.5) (5.0) (15.6)
Prior year adjustments 0.2 (0.6) 0.2
Total current taxation (3.3) (5.6) (15.4)
--------------------------------------- ------------------ ------------------ ----------------
Deferred taxation
Origination and reversal of temporary
differences 0.2 1.1 4.0
US Federal tax rate change adjustment - - 1.0
Prior year adjustments - - (2.2)
Total deferred taxation 0.2 1.1 2.8
--------------------------------------- ------------------ ------------------ ----------------
Income tax charge in the income
statement (3.1) (4.5) (12.6)
--------------------------------------- ------------------ ------------------ ----------------
Total credit/(charge) relating
to components of other comprehensive
income
Current tax on translation - - (0.4)
Deferred tax on actuarial gains
and losses - - (0.3)
Deferred tax on share-based payments - - (0.1)
Deferred tax on translation - - (0.3)
Income tax credit in the statement
of other comprehensive income - - (1.1)
--------------------------------------- ------------------ ------------------ ----------------
Total current taxation (3.3) (5.6) (15.8)
Total deferred taxation 0.2 1.1 2.1
Total taxation (3.1) (4.5) (13.7)
--------------------------------------- ------------------ ------------------ ----------------
On 25 April 2019, the European Commission published its final
decision regarding its investigation into the UK CFC rules,
concluding that the exemption applied to income derived from UK
activities constituted a breach of EU State Aid rules. On 12 June
2019, the UK government applied to the EU General Court to annul
this decision. Like many other multinational Groups that have acted
in accordance with UK legislation, the Group may be affected by the
final outcome of this case. The Group estimates the potential range
of exposure is between GBPnil and GBP4 million. The Group does not
consider that a provision is required at this stage based on the
level of uncertainty that exists over the potential liability. This
is considered to be a contingent liability at 30 June 2019.
7. Earnings per share
7.1 Basic and diluted earnings per share
Six months Six months
ended ended Year ended
30 June 2019 30 June 31 December
(unaudited) 2018 (unaudited) 2018 (audited)
---------------------------- -------------- ------------------ ----------------
Basic earnings per share 4.06p 5.35p 13.76p
Diluted earnings per share 4.04p 5.31p 13.66p
----------------------------- -------------- ------------------ ----------------
Basic earnings per share amounts are calculated by dividing net
profit for the period attributable to ordinary equity holders by
the weighted average number of ordinary shares outstanding during
the period.
Diluted earnings per share amounts are calculated by dividing
the net profit attributable to ordinary equity holders by the
weighted average number of ordinary shares outstanding during the
period plus the weighted average number of ordinary shares that
would be issued on the conversion of all the diluted potential
ordinary shares into ordinary shares.
7.2 Weighted average number of shares
Six months Six months
ended ended Year ended
30 June 2019 30 June 31 December
(unaudited) 2018 (unaudited) 2018 (audited)
m m m
--------------------------------------- -------------- ------------------ ----------------
Weighted average number of shares
(1) 196.8 189.5 193.2
Treasury and Employee Benefit
Trust shares (1.9) (1.6) (1.8)
--------------------------------------- -------------- ------------------ ----------------
Weighted average number of shares
- basic 194.9 187.9 191.4
Effect of dilutive potential ordinary
shares (2) 0.6 1.4 1.5
Weighted average number of shares
- diluted 195.5 189.3 192.9
--------------------------------------- -------------- ------------------ ----------------
(1) Including treasury shares
(2) LTIP awards and options
7.3 Non-GAAP alternative performance measure: Adjusted earnings
per share
The Group presents an adjusted earnings per share measure which
excludes the impact of exceptional items, certain non-cash finance
costs, amortisation of acquired intangible assets and certain
non-recurring items. Adjusted earnings per share has been
calculated using the Adjusted profit before taxation and using the
same weighted average number of shares in issue as the earnings per
share calculation. See Alternative Performance Measures on page
44.
Six months Six months
ended ended Year ended
30 June 2019 30 June 31 December
(unaudited) 2018 (unaudited) 2018 (audited)
----------------------------------- -------------- ------------------ ----------------
Basic adjusted earnings per share 13.14p 13.11p 27.68p
Diluted adjusted earnings per
share 13.10p 13.01p 27.47p
----------------------------------- -------------- ------------------ ----------------
8. Goodwill
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
GBPm GBPm GBPm
----------------------------------- --- ------------------ ------------------ ----------------
Net book amount at the beginning
of the period 382.1 323.8 323.8
Acquisitions of subsidiaries 14 2.3 33.7 40.8
Exchange difference 1.5 6.5 17.5
Net book amount at the end of the
period 385.9 364.0 382.1
----------------------------------- --- ------------------ ------------------ ----------------
Taking into account current trading conditions and future
projections, the Board believes that the carrying amount of
goodwill and intangible assets in each of the Group's CGUs remains
appropriate at the half year.
9. Intangible assets
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
Note GBPm GBPm GBPm
------------------------------------ ------ ------------------ ------------------ ----------------
Net book amount at the beginning
of the period 134.8 103.4 103.4
Additions 0.4 0.5 1.7
Acquisitions of subsidiaries 14 2.5 41.0 50.4
Amortisation charge for the period (14.2) (13.4) (27.3)
Software impairment charge - (0.1) (0.1)
Transfers to property, plant
and equipment - - (0.1)
Exchange difference (0.1) 2.7 6.8
Net book amount at the end of
the period 123.4 134.1 134.8
------------------------------------ ------ ------------------ ------------------ ----------------
The amortisation charge for the period includes GBP13.5 million
relating to amortisation of acquired intangible assets (six months
ended 30 June 2018: GBP12.8 million; year ended 31 December 2018:
GBP25.8 million) and GBP0.7 million relating to amortisation of
other intangible assets (six months ended 30 June 2018: GBP0.6
million; year ended 31 December 2018: GBP1.4 million). The
amortisation charge for the period is included in administrative
expenses in the income statement.
10. Property, plant and equipment
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
Note GBPm GBPm GBPm
------------------------------------ ----- ------------------ ------------------ ----------------
Net book amount at the beginning
of the period 77.0 68.4 68.4
Change in accounting policy 17 (0.8) - -
------------------------------------ ----- ------------------ ------------------ ----------------
Restated amount at the beginning
of the period 76.2 68.4 68.4
Additions 5.5 6.9 15.7
Acquisitions of subsidiaries 14 (0.1) 5.4 6.3
Disposals (1.1) (1.3) (4.0)
Depreciation charge for the period (6.4) (5.9) (12.5)
Impairment charge for the period 15 (3.9) - -
Transfers from intangible assets - - 0.1
Exchange difference 0.1 1.1 3.0
Net book amount at the end of
the period 70.3 74.6 77.0
------------------------------------ ----- ------------------ ------------------ ----------------
The depreciation charge for the period is included in
administrative expenses in the income statement. The impairment
charge is included in exceptional items (note 4).
11. Interest-bearing loans and borrowings
31 December
30 June 30 June 2018
2019 (unaudited) 2018 (unaudited) (audited)
GBPm GBPm GBPm
------------- --- ------------------ ------------------ ------------
Current - (2.3) (1.5)
Non-current (277.6) (261.5) (259.2)
(277.6) (263.8) (260.7)
----------------- ------------------ ------------------ ------------
Movements in interest-bearing loans and borrowings are analysed
as follows:
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
Note GBPm GBPm GBPm
----------------------------------- ----- ------------------ ------------------ ----------------
Balance at the beginning of the
period (260.7) (205.4) (205.4)
Change in accounting policy 17 0.2 - -
----------------------------------- ----- ------------------ ------------------ ----------------
Restated balance at the beginning
of the period (260.5) (205.4) (205.4)
Acquisitions of subsidiaries 14 - (1.8) (2.6)
Refinancing costs paid 0.3 2.0 2.0
Drawdown of revolving credit
facility (25.4) (243.0) (272.7)
Repayment of revolving credit
facility 8.7 190.4 229.6
Amortisation of borrowing costs (0.3) (0.7) (1.0)
Exchange difference (0.4) (5.3) (10.6)
Balance at the end of the period (277.6) (263.8) (260.7)
----------------------------------- ----- ------------------ ------------------ ----------------
There were no defaults in interest payments in the period under
the terms of existing loan agreements. The Group has the following
undrawn committed multi-currency revolving credit facility:
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
GBPm GBPm GBPm
------------------------- ------------------ ------------------ ----------------
Floating rate
Expiry beyond 12 months (56.1) (53.2) (58.5)
-------------------------- ------------------ ------------------ ----------------
The Group also has access to the uncommitted GBP70.0 million
accordion facility and at 30 June 2019 held aggregate cash balances
of GBP49.6 million (30 June 2018: GBP45.7 million; 31 December
2018: GBP51.9 million).
12. Share capital
Number of Ordinary
shares shares Share premium
'000 GBPm GBPm
--------------------------------- ---------- --------- --------------
At 1 January 2018 178.6 8.9 81.4
Shares issued 18.2 0.9 50.8
---------------------------------- ---------- --------- --------------
At 30 June 2018 and 31 December
2018 196.8 9.8 132.2
Capital reduction - - (132.2)
At 30 June 2019 196.8 9.8 -
---------------------------------- ---------- --------- --------------
13. Financial risk management and financial instruments
13.1 Financial risk factors and fair value estimation
The Group is exposed to risks arising from the international
nature of its operations and the financial instruments which fund
them, in particular to foreign currency, interest rate and
liquidity risks. Full details of the Group's policies for managing
these risks are disclosed in the Group's annual financial
statements for the year ended 31 December 2018.
Since the date of that report there have been no significant
changes in:
-- the nature of the financial risks to which the Group is exposed;
-- the nature of the financial instruments which the Group uses;
-- the Group's contractual cash outflows and the committed
facilities available to fund them; or
-- difference between book value and fair value of any financial instruments.
During the period the Group held no level 1 financial
instruments, there were no transfers between levels and no changes
were made to valuation techniques.
Derivatives shown at fair value in the Group's balance sheet
comprise level 2 interest rate swaps fair valued using forward
interest rates extracted from observable yield curves. The effects
of discounting are generally insignificant for level 2
derivatives.
The Group's other financial instruments are measured on bases
other than fair value.
13.2 Level 2 and level 3 fair values
The Group has the following financial assets and liabilities
categorised at levels 2 and 3:
31 December
2018
30 June 2019 30 June
(unaudited) 2018 (unaudited) (audited)
GBPm GBPm GBPm
---------------------------------- ------------- ------------------ ------------
Level 2
Derivative financial assets 0.4 0.3 0.3
Derivative financial liabilities (0.1) (0.4) (0.3)
Level 3
Financial assets at fair value
through profit or loss 1.2 1.1 1.2
---------------------------------- ------------- ------------------ ------------
13.3 Fair value of financial assets and liabilities measured at
amortised cost
The fair values of borrowings are as follows:
31 December
2018
30 June 30 June
2019 (unaudited) 2018 (unaudited) (audited)
GBPm GBPm GBPm
------------- --- ------------------ ------------------ ------------
Non-current - (2.3) (1.4)
Current (276.8) (263.1) (258.0)
(276.8) (265.4) (259.4)
----------------- ------------------ ------------------ ------------
The fair values of trade and other receivables, cash and cash
equivalents, and trade and other payables approximate their
carrying amounts.
14. Business combinations
Changes to 2018
acquisition
Y-cam fair values Total
Note GBPm GBPm GBPm
--------------------------------- ----- ------ ---------------- ------
Intangible assets 9 2.5 - 2.5
Property, plant and equipment 10 - (0.1) (0.1)
Inventories 0.1 0.1 0.2
Trade and other receivables (0.1) - (0.1)
Cash and cash equivalents 0.1 - 0.1
Trade and other payables (0.1) - (0.1)
Current tax liabilities (0.1) (0.3) (0.4)
Deferred tax liabilities (0.4) - (0.4)
--------------------------------- ----- ------ ---------------- ------
Total identifiable net assets 2.0 (0.3) 1.7
Goodwill arising on acquisition 8 2.0 0.3 2.3
Total consideration 4.0 - 4.0
--------------------------------- ----- ------ ---------------- ------
Satisfied by:
Cash 1.0 - 1.0
Deferred consideration 3.0 - 3.0
Total consideration 4.0 - 4.0
--------------------------------- ----- ------ ---------------- ------
Net cash outflow arising on
acquisition:
Cash consideration 1.0 - 1.0
Net cash and cash equivalents
acquired (0.1) - (0.1)
Net cash outflow 0.9 - 0.9
--------------------------------- ----- ------ ---------------- ------
14.1 Acquisition of Y-cam
On 18 February 2019, ERA completed the acquisition of Y-cam
Solutions Limited, a UK-based smart home security pioneer for
initial cash consideration of GBP1.0 million. The agreement
includes provision for additional consideration of up to GBP10
million, subject to reaching certain performance targets, to be
paid in instalments over a three-year period.
Intangible assets acquired relate to technology assets and
residual goodwill is attributable to the expected benefits of using
the acquired technology platform in conjunction with ERA smartware
products and the acquired workforce. The estimated value of
intangibles, including goodwill, deductible for tax purposes is
nil.
Acquisition related costs of GBP0.2 million have been included
in exceptional costs in the Group's consolidated income statement
(note 4).
The fair value of trade and other receivables at the acquisition
date, revenue and profit in the consolidated income statement since
18 February 2019 are not material. Had Y-cam been acquired on 1
January 2019, the Groups' revenue and profit would not have been
materially different.
14.2 Changes to 2018 acquisition fair values
A number of changes have been made to the fair values of assets
and liabilities in relation to Ashland, Zoo, and Reguitti which
were acquired in 2018 as part of the finalisation of the
acquisition accounting. These adjustments are not material and have
therefore been recognised as adjustments to goodwill in the current
period without restating prior periods.
15. Adjustments to cash flows from operating activities
The following non-cash and financing adjustments have been made
to profit before taxation to arrive at operating cash flow:
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
Note GBPm GBPm GBPm
--------------------------------- ----- ------------------ ------------------ ----------------
Net finance costs 5 7.5 5.4 11.6
Depreciation of PPE 10 6.4 5.9 12.5
Depreciation of right of use
assets 17 3.5 - -
Amortisation of intangible
assets 9 14.2 13.4 27.3
Impairment of computer software 9 - 0.1 0.1
Impairment of PPE 10 3.9 - -
Profit on disposal of PPE (0.1) 0.1 -
Write-off of inventory fair
value adjustments 4 - 2.4 2.5
Pension costs 0.2 0.3 0.6
Non-cash provision movements 0.1 (0.8) (2.0)
Share-based payments 0.7 0.7 1.0
36.4 27.5 53.6
--------------------------------- ----- ------------------ ------------------ ----------------
16. Capital commitments
At 30 June 2019 the Group has capital commitments of GBP1.0
million for the purchase of property, plant and equipment (30 June
2018: GBP2.5 million; 31 December 2018: GBP0.2 million).
17. Changes in accounting policies
This note explains the impact of the adoption of IFRS 16
'Leases' on the Group's financial statements.
The Group has adopted IFRS 16 from 1 January 2019, but has not
restated comparatives for the 2018 reporting period, as permitted
under the specific transitional provisions in the standard. The
reclassifications and adjustments arising from the new standard are
recognised in the opening balance sheet as at 1 January 2019.
17.1 Impact on the balance sheet
The change in accounting policy affected the following items in
the balance sheet on 1 January 2019:
Increase/
decrease GBPm
------------------------------- ----------- -------
Property, plant and equipment Decrease (0.8)
Right of use assets Increase 65.0
Deferred tax liability Increase (0.5)
Prepayments Decrease (0.5)
Borrowings Decrease 0.2
Other payables Decrease 2.9
Lease liabilities Increase (63.7)
------------------------------- ----------- -------
The net impact on retained earnings on 1 January 2019 was an
increase of GBP2.4 million.
17. Changes in accounting policies (continued)
17.1 Impact on the balance sheet (continued)
a) Lease liabilities
On adoption of IFRS 16, the Group recognised lease liabilities
in relation to leases which had previously been classified as
'operating leases' under the principles of IAS 17 Leases. These
liabilities were measured at the present value of the remaining
lease payments, discounted using the lessee's incremental borrowing
rate as of 1 January 2019.
The lease liabilities at 30 June 2019 and 1 January 2019 were as
follows:
30 June 1 January
2019 (unaudited) 2019 (unaudited)
GBPm GBPm
------------------------- ------------------ ------------------
Current liabilities (5.9) (5.5)
Non-current liabilities (55.9) (58.2)
(61.8) (63.7)
------------------------- ------------------ ------------------
Lease liabilities recorded at 1 January 2019 can be reconciled
to operating lease disclosures as at 31 December 2018 as
follows:
1 January
2019 (unaudited)
GBPm
--------------------------------------------------------- ------------------
Operating lease commitments disclosed as at 31
December 2018 91.5
(Less): short-term leases recognised on a straight-line
basis as expense (0.7)
(Less): low-value leases recognised on a straight-line
basis as expense (0.4)
--------------------------------------------------------- ------------------
Gross future lease cashflows 90.4
Effect of discounting (26.5)
Add: finance lease liabilities recognised as at
31 December 2018 (0.2)
Lease liability recognised as at 1 January 2019 63.7
--------------------------------------------------------- ------------------
b) Right of use assets
Right of use assets were measured at the amount equal to the
lease liability, adjusted by the amount of prepaid or accrued lease
payments relating to leases and dilapidations assets recognised in
the balance sheet as at 31 December 2018. There were no onerous
lease contracts that would have required an adjustment to the right
of use assets at the date of initial application.
The recognised right-of-use assets relate to the following types
of assets:
30 June 1 January
2019 (unaudited) 2019 (unaudited)
GBPm GBPm
--------------------- ------------------ ------------------
Properties 59.8 62.8
Plant and equipment 1.2 1.1
Vehicles 0.9 1.0
Other 0.1 0.1
Total 62.0 65.0
--------------------- ------------------ ------------------
17. Changes in accounting policies (continued)
17.2 Impact on the income statement and earnings per share
For the six-months ended 30 June 2019, Adjusted Operating Profit
was GBP0.8 million higher as a result of applying IFRS 16 due to a
portion of the lease expense now being recorded as interest
expense. Profit before tax was GBP0.7 million lower due to interest
expenses being higher at the beginning of the lease term. This also
reduced Earnings Per Share by 0.37p.
The impact on Adjusted Operating Profit by operating segment for
the period was:
GBPm
---------------- -----
AmesburyTruth 0.6
ERA 0.1
SchlegelGiesse 0.1
Total 0.8
---------------- -----
17.3 Impact on the cash flow statement
Payments in respect of leases which were previously recognised
within cash flows from operating activities are now recorded within
cash flow from financing activities, separated between payment of
interest and payment of principal elements. This has increased net
cash generated from operations and increased net cash used in
financing activities by GBP4.7 million.
17.4 Judgements and estimates
Critical judgements in determining the lease term
Extension and termination options
Extension and termination options are included in a number of
property and equipment leases across the Group. These terms are
used to maximise operational flexibility in terms of managing
contracts. The extension and termination options held are
exercisable only by the Group and not by the respective lessor.
In determining the lease term, management considers all facts
and circumstances that create an economic incentive to exercise an
extension option, or not exercise a termination option. Extension
options (or periods after termination options) are only included in
the lease term if the lease is reasonably certain to be extended
(or not terminated). Potential gross future cash outflows of
GBP64.5 million have not been included in the lease liability
because it is not reasonably certain that the leases will be
extended (or not terminated).
The assessment is reviewed if a significant event or a
significant change in circumstances occurs which affects this
assessment and that is within the control of the lessee. During the
current period, there were no leases where this assessment was
changed.
The revised leases accounting policy will be disclosed in the
2019 annual report.
17. Changes in accounting policies (continued)
17.4 Practical expedients applied
In applying IFRS 16 for the first time, the Group has used the
following practical expedients permitted by the standard:
-- reliance on previous assessments on whether leases are onerous
-- the accounting for operating leases with a remaining lease
term of less than 12 months as at 1 January 2019 as short-term
leases
-- the exclusion of initial direct costs for the measurement of
the right-of-use asset at the date of initial application, and
-- the use of hindsight in determining the lease term where the
contract contains options to extend or terminate the lease.
The Group has also elected not to reassess whether a contract
is, or contains a lease at the date of initial application.
Instead, for contracts entered into before the transition date the
Group relied on its assessment made applying IAS 17 and IFRIC 4
Determining whether an Arrangement contains a Lease.
18. Related party transactions
There were no material related party transactions requiring
disclosure, other than compensation of key management personnel
which will be disclosed in the Group's Annual Report and Accounts
for the year ending 31 December 2019.
Statement of Directors' responsibilities
Each of the Directors of Tyman plc confirms, to the best of his
or her knowledge, that:
-- the Interim Financial Statements have been prepared in
accordance with IAS 34 'Interim Financial Reporting' as issued by
the IASB and endorsed and adopted by the EU and give a true and
fair view of the assets, liabilities, financial position and profit
and loss of Tyman plc;
-- the interim report includes a fair review of the information required by:
-- DTR 4.2.7R of the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
interim financial statements; and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
-- DTR 4.2.8R of the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority,
being related party transactions that have taken place in the first
six months of the current financial year and that have materially
affected the financial position or performance of the Group during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
The Directors of Tyman plc are listed in the Group's Annual
Report and Accounts for the year ending 31 December 2018, with the
exception of the following changes in the Board:
-- Jo Hallas joined the Board as Chief Executive Officer and
Jason Ashton joined the Board as Chief Financial Officer; and
-- Louis Eperjesi and James Brotherton stepped down from the Board.
A list of the current Directors is maintained at the Tyman
website: www.tymanplc.com.
By order of the Board
Jo Hallas Jason Ashton
Chief Executive Officer Chief Financial Officer
25 July 2019
Independent review report to Tyman plc
Report on the Interim Financial Statements
Our conclusion
We have reviewed Tyman plc's Interim Financial Statements (the
"interim financial statements") in the Interim Report of Tyman plc
for the six month period ended 30 June 2019. Based on our review,
nothing has come to our attention that causes us to believe that
the interim financial statements are not prepared, in all material
respects, in accordance with International Accounting Standard 34,
'Interim Financial Reporting', as adopted by the European Union and
the Disclosure Guidance and Transparency Rules sourcebook of the
United Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
-- the Condensed consolidated balance sheet as at 30 June 2019;
-- the Condensed consolidated income statement and Condensed
consolidated statement of comprehensive income for the period then
ended;
-- the Condensed consolidated cash flow statement for the period then ended;
-- the Condensed consolidated statement of changes in equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim Report
have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the
European Union and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority.
As disclosed in note 2 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The Interim Report, including the interim financial statements,
is the responsibility of, and has been approved by, the directors.
The directors are responsible for preparing the Interim Report in
accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the Interim Report based on our review.
This report, including the conclusion, has been prepared for and
only for the company for the purpose of complying with the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility
for any other purpose or to any other person to whom this report is
shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim
Report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
London
25 July 2019
Alternative Performance Measures
The Group uses a number of Alternative Performance Measures.
APMs provide additional useful information to shareholders on the
underlying performance of the business. These APMs are consistent
with how business performance is measured internally by the Group,
align with the Group's strategy, and remuneration policies. These
measures are not recognised under IFRS and may not be comparable
with similar measures used by other companies. APMs are not
intended to be superior to or a substitute for GAAP measures.
The following table summarises the key APMs used, why they are
used by the Group, and how they are calculated. Where appropriate,
a reconciliation to the nearest GAAP number is presented. Details
of other APMs are included on the Group's website. Measures
formerly referred to as 'Underlying' are now referred to as
'Adjusted'.
Adjusted operating profit and adjusted operating margin
Definition
Operating profit before amortisation of acquired intangible
assets, impairment of acquired intangible assets, impairment of
goodwill, and exceptional items.
Adjusted operating margin is calculated as adjusted operating
profit divided by revenue, expressed as a percentage.
Purpose
This measure is used to evaluate the trading operating
performance of the Group.
Exceptional items are excluded from this measure as they are
largely one off and non-trading in nature and therefore create
volatility in reported earnings.
Amortisation of acquired intangible assets is excluded from this
measure as this is a significant non-cash fixed charge that is not
affected by the trading performance of the business.
Impairment of acquired intangible assets and goodwill is
excluded, as this is a significant non-cash charge.
Reconciliation/calculation
Adjusted operating profit is reconciled on the face of the
income statement on page 21.
Like-for-like or LFL revenue and adjusted operating profit
Definition
The comparison of revenue or operating profit, as appropriate,
excluding the impact of IFRS 16, any acquisitions made during the
current year and, for acquisitions made in the comparative year,
excluding from the current year result the impact of the equivalent
current year pre-acquisition period. For disposals, results are
excluded for the whole of the current and prior period. The prior
period comparative is retranslated at the current period average
exchange rate. The result of Y-cam is not adjusted as it is not
material.
Change in current year
This measure has been amended in the current period to exclude
the impact of applying IFRS 16. The Group considers this amendment
provides shareholders with a comparable basis from which to
understand the organic trading performance in the year.
Purpose
This measure is used by management to evaluate the Group's
organic growth in revenue and adjusted operating profit, excluding
the impact of M&A and currency movements.
Reconciliation/calculation
Six months Six months
ended ended
30 June 30 June
2019 (unaudited) 2018 (unaudited)
GBP'm GBP'm
---------------------------------------- ------------------ ------------------
Reported revenue 301.9 274.9
Equivalent period for prior year
acquisitions (22.2) -
Disposals - (3.0)
Effect of exchange rates - 9.8
Like-for-like revenue 279.7 281.7
------------------------------------------ ------------------ ------------------
Adjusted operating profit 41.9 38.2
Operating profit for equivalent period
from entities acquired in prior year (3.3) -
Impact of IFRS 16 (0.8) -
Disposals - (0.7)
Effect of exchange rates - 1.7
Like-for-like adjusted operating
profit 37.8 39.2
------------------------------------------ ------------------ ------------------
Adjusted profit before and after tax
Definition
Profit before amortisation of acquired intangible assets,
deferred tax on amortisation of acquired intangible assets,
impairment of acquired intangible assets, impairment of goodwill,
exceptional items, gains and losses on the fair value of derivative
financial instruments, amortisation of borrowing costs and
associated tax effects.
Purpose
This measure is used to evaluate the profit generated by the
Group through trading activities. In addition to the items excluded
from operating profit above, the gains and losses on the fair value
of derivative financial instruments, amortisation of borrowing
costs, and the associated tax effect are excluded. These items are
excluded as they are of a non-trading nature.
Reconciliation/calculation
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 (unaudited) 2018 (unaudited) 2018 (audited)
GBPm GBPm GBPm
------------------------------------- ------------------ ------------------ ----------------
Profit before taxation 11.0 14.5 38.9
Exceptional items 9.9 5.5 7.3
(Loss) on revaluation of fair
value hedge - (0.2) (0.3)
Amortisation of borrowing costs 0.3 0.7 1.0
Amortisation of acquired intangible
assets 13.5 12.8 25.8
-------------------------------------- ------------------ ------------------ ----------------
Adjusted profit before taxation 34.7 33.3 72.7
Income tax charge (3.1) (4.5) (12.6)
Add back: Adjusted tax effect(1) (6.0) (4.2) (7.1)
Adjusted profit after taxation 25.6 24.6 53.0
-------------------------------------- ------------------ ------------------ ----------------
(1) Tax effect of exceptional items, amortisation of borrowing
costs, amortisation of acquired intangible assets, and gain or loss
on revaluation of fair value hedge.
Adjusted earnings per share
Definition
Adjusted profit after tax divided by the basic weighted average
number of ordinary shares in issue during the year, excluding those
held as treasury shares.
Purpose
This measure is used to assess the trading operating performance
per share in issue. This is used as the basis of the Group's
long-term incentive plan targets and is the measure used in
determining the level of dividend to be paid under the Group's
dividend policy.
Reconciliation/calculation
Adjusted profit after tax is reconciled above and the number of
shares can be found in note 7.
Leverage
Definition
Adjusted net debt translated at the average exchange rate for
the year divided by Adjusted EBITDA, calculated using the
prevailing GAAP at February 2018 (excluding the impact of IFRS 15,
9, and 16). This calculation is the covenant calculation defined in
the Group's banking facility and private placement debt
documents.
Purpose
This measure is used to evaluate the ability of the Group to
generate sufficient cash flows to cover its contractual debt
servicing obligations and to provide users of the accounts with
details of whether the Group remains in compliance with its lending
covenants.
Reconciliation/calculation
Six months Six months
ended ended
30 June 30 June
2019 (unaudited) 2018 (unaudited)
GBP'm GBP'm
--------------------------------------------- ----------------- -----------------
Adjusted Net Debt (at average exchange rate) 225.6 216.2
Adjusted EBITDA 102.3 102.7
--------------------------------------------- ----------------- -----------------
Leverage 2.21x 2.11x
--------------------------------------------- ----------------- -----------------
Return on Capital Employed (ROCE)
Definition
LTM adjusted operating profit as a percentage of the LTM average
capital employed (expressed as a 13 point average).
Purpose
This measure is used to evaluate how efficiently the Group's
capital is being employed to improve profitability.
Reconciliation/calculation
12cmonths 12 months
ended ended
30 June 30 June
2019 (unaudited) 2018 (unaudited)
GBP'm GBP'm
------------------------------ ----------------- -----------------
LTM adjusted Operating Profit 87.3 79.5
LTM average capital employed 688.3 573.2
------------------------------ ----------------- -----------------
ROCE 12.7% 13.9%
------------------------------ ----------------- -----------------
Return on acquisition investment (ROAI)
Definition
Adjusted operating profit attributable to the acquired business
divided by the gross cost of investment (original cost plus
acquisition and integration costs), plus the change in fair value
of controllable capital employed between the date of acquisition
and the date of measurement. The denominator is adjusted for
seasonality where appropriate.
For acquisitions made within the last 12 months, adjusted
operating profit is an annualised measure. For acquisitions made
more than 12 months ago, adjusted operating profit is measured over
the last 12 months. ROAI is measured for 2 years following
acquisition.
Purpose
This measure is used to evaluate the efficiency and returns
achieved by the Group from its investments in recent material
business acquisitions and allows users of the accounts to compare
the relative performance of each acquisition made by the Group.
ROAI is measured over a two year period following acquisition.
Reconciliation/calculation
Howe Green Ashland Zoo Profab Reguitti
GBPm $m GBPm GBPm EURm
-------------------------------- ----------- -------- ------ ------- ---------
Adjusted operating profit 1.2 14.9 3.9 0.7 1.6
Gross cost of investment 6.4 104.4 19.1 4.2 16.4
Change in controllable capital
employed 0.6 1.9 0.5 (0.4) (0.2)
-------------------------------- ----------- -------- ------ ------- ---------
7.0 106.3 19.6 3.8 16.2
--------------------------------
ROAI 17.0% 14.0% 19.8% 18.4% 9.9%
-------------------------------- ----------- -------- ------ ------- ---------
Operating cash conversion and operational cash flow
Definition
Operational cash flow
Net cash generated from operations before Income tax paid,
exceptional costs cash settled in the year and Pension
contributions, and after proceeds on disposal of property, plant
and equipment, payments to acquire property, plant and equipment
and payments to acquire intangible assets.
Adjusted operational cash flow
Operational cash flow, less lease payments.
Operating cash conversion
Operational cash flow divided by adjusted operating profit.
Purpose
These measures are used to evaluate the cash flow generated by
the business operations in order to pay down debt, return cash to
shareholders and invest in acquisitions. Cash conversion provides
users of the accounts with a measure of the extent that the Group's
profitability converts into cash.
Reconciliation/calculation
A reconciliation is included in the financial review on page
15.
DEFINITIONS AND GLOSSARY OF TERMS
Access 360 The Access Solutions business of ERA, constituting
Bilco UK, Profab and Howe Green
APM Alternative Performance Measure
ASEAN Association of Southeast Asian Nations
Ashland or Ashland Ashland Hardware Holdings Inc, acquired by
Hardware AmesburyTruth on 15 March 2018
Bilco The Bilco Company acquired by the Group's AmesburyTruth
Division on 1 July 2016
bps Basis points
CGU Cash Generating Unit
EBITDA Earnings before Interest, Taxation, Depreciation
and Amortisation
EBT Employee Benefit Trust
EMEAI Europe, Middle East and Africa and India region
EPS Earnings per Share
FENSA A government-authorised scheme that monitors
building regulation compliance for replacement
windows and doors.
Giesse Giesse Group acquired by the Group's Schlegel
International Division on 7 March 2016.
Howe Green Howe Green Limited acquired by the Group on
3 March 2017
IFRS International Financial Reporting Standards
Interim Financial The condensed consolidated interim financial
Statements statements of Tyman plc for the six months
ended 30 June 2019
Interim Report The interim report of Tyman plc for the six
months ended 30 June 2019
LIRA Leading Indicator of Remodelling Activity published
by the Joint Centre for Housing Studies of
Harvard University
LTM Last twelve months
M&A Mergers and acquisitions
NAHB The National Association of Home Builders
NPD New Product Development
OEM Original equipment manufacturer
PPE Property, plant and equipment
Profab Profab Access Solutions Limited acquired by
ERA on 31 July 2018
Reguitti Reguitti S.P.A acquired by SchlegelGiesse on
31 August 2018
RMI Renovation, maintenance and improvement
Tyman Any references to Tyman, the Group, or the
Company refer to Tyman plc and its subsidiaries.
Y-cam Y-cam Solutions Limited acquired by ERA on
18 February 2019
Zoo or Zoo Hardware Zoo Hardware Limited acquired by ERA on 10
May 2018
EXCHANGE RATES
The following foreign exchange rates have been used in the
financial information to translate amounts into Sterling:
Closing Rates: H1 2019 H1 2018 FY 2018
-------------------- -------- -------- --------
US Dollars 1.2697 1.3207 1.2736
Euros 1.1167 1.1305 1.1128
Australian Dollars 1.8082 1.7831 1.8055
Canadian Dollars 1.6622 1.7348 1.7360
Brazilian Real 4.8865 5.1215 4.9410
-------------------- -------- -------- --------
Average Rates: H1 2019 H1 2018 FY 2018
-------------------- -------- -------- --------
US Dollars 1.2938 1.3760 1.3350
Euros 1.1453 1.1366 1.1302
Australian Dollars 1.8319 1.7841 1.7862
Canadian Dollars 1.7255 1.7577 1.7293
Brazilian Real 4.9757 4.7067 4.8643
-------------------- -------- -------- --------
ROUNDINGS
Percentage numbers have been calculated using unrounded figures,
which may lead to small differences in some figures and percentages
quoted.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BZLLLKDFLBBV
(END) Dow Jones Newswires
July 25, 2019 02:01 ET (06:01 GMT)
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