Tyman lifts dividend as H1 profits grow

In the six months to 30 June, pre-tax profit increased 9% to £37.4m on revenue of £360m, up 15% on the same period a year ago. Adjusted pre-tax profit was up 5% at £45.4m and the company lifted its dividend by 5% to 4.2p a share.

Tyman said like-for-like revenues grew 11% during the half, driven by pricing actions to recover input cost inflation.

The company said volume growth remains constrained by industry-wide supply chain issues and labour shortages that took effect from May, although these issues are progressively improving.

Underlying demand in most of its major markets started the year strongly, it said, supported by a continuation of the Covid-related trends that have led to increased repair, maintenance and improvement (RMI) activity. Government fiscal stimulus programmes, mainly in Italy, have also boosted residential and commercial activity.

However, the company noted that since May, when the cost-of-living crisis and rising interest rates really began to have an impact on consumers, demand levels began to moderate in certain markets. "The group has remained agile in implementing pricing actions, but the inevitable, albeit reducing, lag in offsetting input cost inflation contributed to a slight decline in LFL adjusted operating profit of 1%," it said.

Chief executive Jo Hallas said: "Tyman traded robustly in the first half of the year against an exceptionally strong comparative period, with pricing actions taken to mitigate further cost inflation.

"We will continue to focus on taking market share and enhancing our operational platform to improve productivity and working capital management. Notwithstanding a more challenging market in the second half, our flexible cost base will allow us to adapt to potential changes in demand, and full year adjusted operating profit is expected to be in line with market expectations excluding the benefit of foreign exchange."

Market expectations are for £91.8m to £96.0m.