Overview
Tyman plc is a
leading supplier of engineered components to the door and window industry. The company operates in three business units: AmesburyTruth, ERA, and Schlegel International.
The housing market has gone through some
turbulent times since we invested in April 2022. However, Tyman has retained a strong financial position, a healthy balance sheet and continues to produce solid returns despite a
challenging climate. The liklihood is that the short term will be a little
rocky for the housing market, and possibly we may see a further
decline in share price in the
short term. However, based on our metrics, Tyman is more
undervalued now than when we last bought in, and has some
attributes which make it a good long term investment.
Tyman's business model is
well-diversified across regions and products; the company operates in various geographies and serves a
broad range of customer segments, providing a
varied product portfolio that caters to the needs of
many different end markets.
The business has shown its commitment to
sustainability and reducing its environmental impact, setting
ambitious targets to reduce its carbon footprint and increase the use of
sustainable materials in its products. We believe this focus on sustainability will help Tyman plc meet the
evolving needs of customers who are increasingly demanding environmentally responsible products.
The company also has a
strong track record of innovation and
quality, positioning it well to capture
growth opportunities in the door and window industry. The increasing demand for energy-efficient homes and buildings is driving the
demand for high-performance doors and windows, and Tyman plc's products are well-suited to meet these demands.
- Revenue growth of
13%, with like-for-like (LFL) growth of
5% reflecting successful pricing actions and share gains, partially offset by lower market volumes, including losses from exiting the Russian market
- Adjusted operating profit growth of
5%
- Full-year dividend increase of
6%.
Jo Hallas, Chief Executive Officer, commented: "The Group delivered a solid trading performance in 2022 against increasingly challenging market conditions. Our continued focus on share gains and improving our operational platform, together with successful implementation of pricing actions and strong cost control, enabled us to deliver full year adjusted operating profit at the upper end of market expectations.
We made further progress on our sustainability roadmap and the issuance of new sustainability-linked financing bolsters the Group's commitments to a more sustainable world. Pleasingly, this progress has been recognised by external agencies, most recently with Tyman's inclusion in the FTSE4Good UK Index.
In 2023, pricing carryover, self-help measures and benefits from strategic initiatives are expected to partially mitigate lower volumes and ongoing cost inflation as we navigate the near-term economic challenges. The underlying fundamentals of the markets the Group operates in remain strong. Building on our portfolio of differentiated products, market-leading brands, deep customer relationships and sustainability credentials, together with our agile and resilient business model, Tyman is well positioned to take advantage of the positive structural industry growth drivers as housing market conditions improve."
Reading between the lines here, TYMN are
streamlining their business and expect a
difficult short-term period. We are buying while market sentiment is
against them and will be holding for the medium term, collecting
dividends, and will be selling when times are good. Patience is an investor's friend - and this company isn't going anywhere.
- Revenue growth of 13%, with like-for-like (LFL) growth of 5% reflecting successful pricing actions and share gains, partially offset by lower market volumes, including losses from exiting the Russian market
- Adjusted operating profit growth of 5%
- Full-year dividend increase of 6%.
Conclusion
Based on Tyman's most recent financial report, the company has delivered a
solid trading performance in 2022 despite increasingly
challenging market conditions. The company has made progress on their sustainability roadmap, and their external recognition has
boosted their commitment to a more sustainable world. While they expect difficult short-term periods, they are well-positioned to take
advantage of
positive structural industry growth drivers in the
medium term. We are reinvesting in the company while market sentiment is
against them, collecting our
6% dividend, and holding for
better times ahead.
Conclusion
