Tyman sees FY profit in line with market expectations

Tyman said on Thursday that full-year profits were set to be in line with market expectations against "a continued challenging demand environment", as pricing actions have helped the group to offset cost inflation.

Consensus expectations are for FY adjusted operating profit of £81.3m.

Tyman pointed to its flexible cost base, the success of its pricing actions in offsetting cost inflation, and the continued implementation of its strategic initiatives "to gain market share and structurally improve gross margin".

"The board expects to revert to a greater weighting of profit generation in the second half of the year, as was usual pre-Covid; this is in contrast with 2022, when the first half of the year benefitted from a continuation of the strong post-Covid rebound in market activity," it said.

In the four months to the end of April, group revenue fell 8% to £215m on a reported basis, and by 13% on a like-for-like basis versus a "strong" comparative last year. As expected, the weakness in volumes seen in the final quarter of 2022 continued and this more than offset the benefit of the carryover of prior-year pricing actions in recovering cost inflation.

Interim chief executive Jason Ashton said: "The group has delivered a solid overall performance against a strong comparative period and despite the subdued market backdrop.

"Our focus on taking market share, managing our cost base and reducing inventory, together with the benefit of prior-year pricing actions, leaves us well placed to navigate the ongoing macroeconomic challenges."