Tyman PLC COVID-19 and Dividend Update (6614I)
03 April 2020 - 5:00PM
UK Regulatory
TIDMTYMN
RNS Number : 6614I
Tyman PLC
03 April 2020
TYMAN PLC
COVID-19 and Dividend Update
Tyman plc ("Tyman" or the "Group"), a leading international
supplier of engineered components and access solutions to the
construction industry, provides an update on the impact of the
Covid-19 pandemic on its business and the actions being taken to
manage this situation.
Business impact
Since the announcement of our 2019 preliminary results on 5(th)
March 2020, the crisis situation with the COVID-19 pandemic has
changed significantly.
The Group's priority continues to be ensuring the health and
safety of our employees, their families and our communities,
especially at the current time. We have acted quickly to implement
enhanced hygiene and social distancing measures across the Group,
including moving employees to remote home working where
possible.
The Group's 2020 trading performance was in line with our
expectations until the middle of March. Since then, trading has
progressively been impacted as increasingly stringent lockdowns
have taken effect in our markets. We have responded accordingly,
temporarily closing our facilities in the UK and Italy. Our sites
in North America are currently operating but with a marked
reduction in order intake now being seen. The situation however
remains fluid and is being closely monitored and actively
managed.
Balance sheet and liquidity
The Group enters this period of volatility and uncertainty with
a robust balance sheet. At 31(st) December 2019, net debt excluding
leases was GBP163m and net debt to EBITDA ratio on a covenant basis
was 1.7x (2018: 2.3x) compared with the covenant limit of 3.0x. The
Group has a cash balance of GBP121m as at 31(st) March 2020, having
recently drawn down against our revolving credit facility of GBP240
million, with GBP4m remaining undrawn. The earliest maturing debt
is a $55m tranche of our US Private Placement that is due for
repayment in November 2021.
Focus on cash preservation and withdrawal of final dividend
The Group has put in place a broad range of measures with focus
on optimisation of cash flow via cost savings, working capital
reduction and tight management of capital expenditure. The Group is
also making use of government employee programmes, tax relief and
other measures as they become available in all our geographies. For
example, in the UK, 80% of the workforce are currently
furloughed.
As part of the leadership's response, the Board and senior
management have elected to take a base salary reduction of 25% and
20% respectively, effective from 1(st) April 2020. In addition, the
Group has decided to cancel the 2020 management bonus scheme.
Given the considerable level of uncertainty, the Board has taken
the decision to cancel the final dividend payment of 8.35p per
ordinary share that was proposed with the 2019 results announcement
on 5 March 2020. The cash impact of this decision is GBP16m in H1
2020. Future dividend decisions will be made as and when conditions
normalise.
We have assessed the impact on both profitability and cash flow
of various potential scenarios of different durations and severity.
We will continue to monitor the evolution of the crisis and remain
flexible to adjust plans as necessary. With the actions being
taken, we are confident that we are well-placed to withstand a
prolonged period of reduced trading.
Outlook
Given the unprecedented levels of uncertainty at this time,
previous guidance on the Group's future performance is being
withdrawn. The Group will provide further updates when there is
greater clarity on the impact of COVID-19 on the trading
environment. This will include an update at the AGM, which is
planned to proceed on 20(th) May 2020 while adhering to government
movement restrictions.
Jo Hallas, CEO, commented:
"Since the start of the crisis, we have taken decisive action to
protect our employees, reduce costs and preserve cash. These
actions combined with our headroom and operational flexibility give
us confidence that we can manage through the uncertainties ahead.
Tyman's inherent strengths including market-leading brands and deep
customer relationships position the Group to emerge well-placed for
future growth once the current crisis recedes."
3 April 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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