Building products manufacturer Tyman expects full-year adjusted operating profits to be in line with internal expectations, reflecting “a successful response” to weakened demand.
Tyman said group revenue increased by 16% to £614.3m on a reported basis and by 9% on a like-for-like basis over the ten months ended 31 October as the company benefitted from pricing actions implemented in order to recover cost inflation, partially offset by lower volumes.
The London-listed group also noted that in response to the war in Ukraine, it had discontinued business with Russia and Belarus from February onwards – with the markets making up just 1% of 2021 group revenue and contributing £3.0m to adjusted operating profits.
Tyman, which acknowledged that a recent moderation in demand had become more pronounced as the year progressed, said it was continuing to focus on its strategic initiatives to gain market share and structurally improve gross margins.
Chief executive Jo Hallas said: “The group has delivered a solid trading performance despite the challenging market conditions. Our continued focus on taking market share and enhancing our operational platform, together with our agility in implementing pricing actions and cost reduction initiatives, leaves us well placed to navigate the ongoing macroeconomic challenges.
“We remain confident in the positive structural industry growth drivers across the group’s markets. Building on our portfolio of differentiated products, market-leading brands and deep customer relationships, our resilient business model and strategic initiatives position Tyman well to capture these growth opportunities when the current near-term housing market constraints dissipate.”
As of 1100 GMT, Tyman shares were up 1.81% at 210.75p.
Reporting by Iain Gilbert at Sharecast.com
