Tyman PLC Annual General Meeting Trading and COVID-19 Update (4021N)

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RNS Number : 4021N

Tyman PLC

20 May 2020

TYMAN PLC

Annual General Meeting Trading and COVID-19 Update

Tyman plc ("Tyman" or the "Group"), a leading international supplier of engineered components and access solutions to the construction industry, is today providing a further update on the business impact of COVID-19 to coincide with the Annual General Meeting being held later today.

Trading and COVID impact

The Group's priority continues to be ensuring the health and safety of our employees, their families and our communities. We have implemented enhanced hygiene, social distancing and other best practice measures across the Group.

Following changes in government guidance, our facilities in Italy re-opened in the middle of April and our UK operations have progressively restarted in May. Our sites in North America are still operating with the exception of our two facilities in Juarez, Mexico. Shift patterns have been adjusted to observe social distancing measures and reflect the lower order intake.

On a reported basis, Group revenue declined by 12% for the four months to 30 April 2020 compared with the corresponding period in 2019, with a decline of 39% in April. Trading was in line with our expectations until the middle of March. Since then, government lockdowns have severely disrupted construction and renovation activity across Europe, including the UK. In the US, construction has been regarded as an essential industry and activity has largely continued but with a marked reduction in demand.

Given the ongoing levels of uncertainty at this time, the Group is unable to resume guidance which was withdrawn on 3 April 2020.

Balance sheet and liquidity

The Group has a good level of liquidity headroom. At 30 April 2020, net debt excluding leases was GBP172 million and net debt to EBITDA ratio on a covenant basis was 1.8x (31 December 2019: 1.7x) compared with the covenant limit of 3.0x. The Group has a cash balance of GBP132 million as at 30 April 2020 representing an increase of GBP11 million since 31st March 2020. As previously reported, the majority of our revolving credit facility of GBP240 million has been drawn down, with GBP13 million remaining undrawn as at 30 April 2020.

The Group continues to focus on the optimisation of cashflow through disciplined management of cost, working capital and capital expenditure. As part of these measures and as announced on 3 April 2020, the Group has withdrawn the final dividend for the FY19 financial year. We have undertaken a number of other cost containment and cash preservation measures including progressing the self-help initiatives announced in March and utilising government support schemes where available. We continue to monitor the situation closely given the fluidity of the crisis.

Board

As previously announced, progress is being made recruiting a new chair; this process is inevitably affected by the social distancing measures but we hope to appoint a successor in the coming months.

Jo Hallas, CEO, commented:

"We are pleased to be carefully and safely reopening our operations in Italy and the UK, although this remains against a background of significantly lower demand globally. We have maintained good liquidity and a strong focus on cost and cash management.

We believe that the actions we are taking, coupled with our inherent strengths, will allow us to emerge from the crisis in an even stronger position as the economy recovers."

20 May 2020

Enquiries

 
Tyman plc                                     020 7976 8000 
Jo Hallas - Chief Executive Officer        www.tymanplc.com 
Jason Ashton - Chief Financial Officer 
 
MHP Communications                            020 3128 8100 
Reg Hoare / Rachel Mann / Ailsa Prestige 
 
 
 

Notes to editors

Tyman (TYMN: LSE) is a leading international supplier of engineered fenestration components and access solutions to the construction industry. The company designs and manufactures products that enhance the comfort, sustainability, security, safety and aesthetics of residential homes and commercial buildings. Tyman's portfolio of leading brands serve their markets through three divisions: North America (AmesburyTruth), UK and Ireland (ERA) and International (SchlegelGiesse). Headquartered in London, the Group employs approximately 3,900 people with facilities in 18 countries worldwide. Further information is available at www.tymanplc.com .

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May 20, 2020 02:00 ET (06:00 GMT)