Tyman sees FY underlying pre-tax profit below analysts' expectations

AIM-listed Tyman said on Tuesday that underlying pre-tax profit for the full year is now expected to be slightly below the current range of analyst expectations, mostly due to increased input costs and the previously reported temporary operational issues in the North American AmesburyTruth division.

According to company-compiled estimates, analysts were expecting underlying pre-tax profit of between £69.6m and £72.3m.

Tyman, which supplies engineered components to the door and window industry, said input costs have continued to increase in the second half of the year, most notably zinc, paint and oil derivatives. In addition, it said that given this year's operational issues, the North American division has not fully recovered the impact of these increases through price.

Still, revenue and underlying pre-tax profit for the year are expected to be ahead of 2016, thanks to full-year contributions from the acquisitions of Giesse and Bilco, synergy benefits and favourable exchange rates.

Chief executive Louis Eperjesi said: "The year to date has seen an encouraging performance from Schlegel International with the expanded product offering gaining traction, most notably in Continental Europe, and Middle East and Latin American trading also improving in Q3.

"We expect to make further progress in 2018 with the market outlook in North America and Continental Europe remaining positive and will continue with our programme of self-help initiatives, including price recovery, to improve margins."

At 0920 GMT, the shares were down 4.7% to 335.50p.