Tyman — Update 25 August 2016

Tyman (LN: TYMN)

Last close As at 28/03/2024

318.50

−4.50 (−1.39%)

Market capitalisation

625m

More on this equity

Research: Industrials

Tyman — Update 25 August 2016

Tyman

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Written by

Industrials

Tyman

Increasing commercial attractions

H116 results

Construction & materials

25 August 2016

Price

279.5p

Market cap

£499m

US$1.32/£

Net debt (£m) as at end June 2016

143.5

Shares in issue

178.6m

Free float

91%

Code

TYMN

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

5.0

5.1

(0.2)

Rel (local)

2.5

(3.6)

(13.2)

52-week high/low

303.0p

225.5p

Business description

Tyman’s product portfolio substantially addresses the residential RMI and building markets with increasing commercial sector exposure following acquisitions. It manufactures and sources window and door hardware and seals, reporting in three divisions: AmesburyTruth (North America 62%), ERA (UK 16%) and Schlegel International (RoW 22%). (Percentages are pro forma FY15 revenue of c £439m, including acquisitions announced in 2016.)

Next events

Scheduled trading update

8 November

Analysts

Toby Thorrington

+44 (0)20 3077 5721

Roger Johnston

+44 (0)20 3077 5722

Tyman is a research client of Edison Investment Research Limited

Strategically, Tyman has taken some important steps in FY16, making acquisitions that have expanded the commercial offer in both existing and new geographies. Programmes to enhance existing operations are ongoing and the market conditions and FX movements are favourable overall. We consider that US exposure is relatively attractive and the rating has scope for expansion given the earnings growth on offer.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

12/14

350.9

41.6

18.4

8.0

15.2

2.9

12/15

353.4

44.9

19.2

8.8

14.8

3.2

12/16e

451.5

54.6

22.0

9.3

12.7

3.3

12/17e

511.6

62.2

24.5

10.3

11.4

3.7

Note: *PBT and EPS (fully diluted) are normalised, as defined by Tyman, excluding intangible amortisation and exceptional items.

Strong H1 performance

H116 results contained a very strong financial performance from AmesburyTruth, with margin progress also achieved by ERA and Schlegel International despite more mixed market conditions. Acquisition activity has supplemented headline reported results and update comments on Giesse, Response and, most recently, Bilco (which will contribute from H2) were all positive. A 12.8% DPS increase was also notable. An underlying free cash inflow was driven by stronger profitability and control of working capital; allowing for the wash through of new equity proceeds, Bilco consideration and seasonally strong H2 trading, net debt:EBITDA is expected to be c 2.1x by the year end.

Estimates raised by Bilco and FX effects

Tyman’s largest markets (the US and Europe) are stable to good currently, though we acknowledge that others (eg Canada, UK) are more challenging. Our underlying estimates are little changed (modestly higher in FY16, modestly lower thereafter). Updated FX assumptions and the inclusion of Bilco (acquired 1 July) support raised group PBT estimates in all three years, being up c 7% for FY16 and c 11% thereafter. The three-year EPS CAGR is now 11.3%. The acquisition of Bilco brings a new focal point for Tyman’s commercial sector aspirations in North America in conjunction with Giesse (acquired in March 2016) and AmesburyTruth and will fit into the strategic footprint change programme that is currently underway there.

Valuation: Clear growth attractions

Tyman’s share price has seen a fairly wide trading range over the year (225p-302p) and until the last month has typically underperformed the FTSE All Share (over three, six and 12 months). We find this a little surprising given that the company’s largest market – the US – is performing well and offers good US dollar exposure. On our revised estimates, Tyman’s rating reduces to a P/E of 10.6x and EV/EBITDA of 6.9x by FY18 (compared to 12.7x and 8.8x, respectively, for the current financial year). With visible and sustained growth to come from operational improvements and completed acquisitions, we see clear attractions for investors.

H116 results overview

There were a lot of moving parts behind the good progress seen in Tyman’s headline H116 results Underlying year-on-year revenue progress was supplemented by improved margins, achieved by all three divisions. Positive acquisition and FX effects added to this, with further gains to come in H2. Strategic M&A activity is the primary driver behind higher net debt levels in FY16.

Exhibit 1: Tyman divisional and interim splits

Year end 31 December, £m

H1

H2

2015

H1

Reported

CER

CER/LFL

Group revenue

175.438

177.987

353.425

201.040

14.6%

3.8%

AmesburyTruth

113.733

124.246

237.979

126.762

11.5%

4.9%

5.8%

ERA

41.963

36.132

78.095

35.413

-15.6%

4.8%

1.5%

Schlegel International

19.742

17.609

37.351

38.865

96.9%

91.9% 

-4.2%

Group operating profit

22.213

29.212

51.425

27.170

22.3%

8.7%

AmesburyTruth

18.776

24.765

43.541

21.784

16.0%

9.2%

7.8%

ERA

6.119

5.459

11.578

5.772

-5.7%

10.9%

11.4%

Schlegel International

0.719

0.855

1.574

3.324

362.3%

382.0% 

17.7%

Central costs

(3.401)

(1.867)

(5.268)

(3.710)

Source: Tyman

North America – AmesburyTruth (AT): Favourable FX translation effects (average US$1.4336/£ versus US$1.5287/£ in H115) broadly doubled the underlying US dollar revenue and EBIT rate of growth, resulting in double-digit percentage increases on both metrics. Headline comparative performance was influenced also by the absence of discontinued extrusion activities (H115 revenue c US$2.5-3.0m, FY15 c US$6.5m) and inclusion of Giesse’s North American distribution activities (H116: four-month revenue contribution of c US$0.5-1.0m).

The existing AT businesses sustained their leading group margin position and made further progress with a 68bp improvement to 17.2% on 5.8% underlying sales growth. Top-line progress was driven by good residential window and door fabricator OEM demand in a US market showing good year-on-year increases in building data especially in single dwellings. Harvard’s LIRA measure of RMI activity was at or above its long-term average in H116 and AT’s initiatives in the commercial construction segment accelerated revenue growth here despite some market softness in large projects. The smaller Canadian market began to improve, but remained below prior year levels, with US-based suppliers including AT also facing relative US dollar strength/Canadian dollar weakness. AT profitability benefited from higher volumes, pricing effects (+c 2% y-o-y) and lower input costs versus last year. Against this, the absorption of some line relocation costs will have weighed on reported profitability though the net margin impact was clearly positive overall.

The North American strategic footprint change programme looked to be more focused on capital projects during H1, including a new facility at Sioux Falls, South Dakota, and an extension to the Juarez, Mexico, site (partly to accommodate lines from elsewhere in AT). The roll-out of a new ERP system to additional locations is also ongoing. Additional projects included the absorption of Giesse’s Tennessee distribution facility into an existing one at Sioux Falls and preparatory work on the strategic acquisition of Bilco (which completed on 1 July). The minor movement in short-term provisions suggests that, line relocation aside, operational impacts of the footprint programme were relatively light in the period. P&L benefits were always expected to flow from the change programme from FY17 onwards; this appears intact and the profile of operational execution is likely to increase.

Looking ahead, US market segments’ lead indicators remain positive, and while Canadian markets have shown some signs of improvement, they are likely to lag the prior year. AT entered H2 with order books c 2% up year-on-year against a comparatively strong exit rate at the end of H115. While some input costs have started to rise, we still expect to see a good seasonal increase in underlying profitability in H2, supplemented by a maiden contribution from Bilco.

UK – ERA: The reported trading performance was partly affected by the disposal of EWS (a non-core reinforcer business) last year and, to a lesser extent, the acquisition of Response Electronics (sales, marketing and distribution of electronic/electro-mechanical security products) in March this year. Response chipped in c £1.2m sales in its 15 weeks of ownership and, implicitly, a small loss.

Stripping these items out, the underlying operations achieved a good EBIT uplift on modest sales progress (+11.4% and +1.5%, respectively). There were pockets of good top-line progress; the distributor channel (+4.4%) benefited from increased focus while Ventrolla (+7.2%) continued recent positive momentum underpinned by business investment. Implicitly, the OEM sales channel was pretty flat with volumes probably slightly down year-on-year after taking into account price inflation following input cost pricing pressure from Q1. ERA’s primary sub-sector focus is RMI spending and market conditions were subdued. While new housebuilding demand has been firmer to date, this forms less than 20% of divisional revenue currently. A 90bp increase in divisional EBIT margin was very creditable and partly reflected steps taken to reduce costs in the prior year ahead of the intended consolidation of three facilities onto one site (scheduled for H117).

In the near term, management is anticipating RMI market softness and expects 2017 volume to be flat to down. Ongoing input price pressures following post-Brexit sterling weakness is an additional challenge; ERA is substantially hedged for the remainder of the current financial year so success in passing on materials inflation is a flag for FY17 financial performance. Competition faces the same pressures and smaller players are already understood to be adjusting prices. ERA will continue to control its cost base including intended site consolidation, which should also bring customer service benefits. Construction of the new combined light assembly and distribution facility is expected to start in Q416. So, ongoing self-help measures are already well in hand to help to mitigate any deterioration in market conditions. To benchmark FY17, revenue and EBIT for the ongoing businesses in FY15 (ie prior to Response) were £66.7m and £10.3m, respectively. Response reported £3.4m revenue and £0.15m EBIT for the same period prior to acquisition.

Other/RoW – Schlegel International: The acquisition of Giesse (an Italy-based window and door hardware business) was the most significant event for this division during H116. In the 15-week period following acquisition, Giesse contributed £20.4m revenue and £3.0m EBIT (compared to c £58.7m/€80.8m and c £7.8m/€10.8m EBITDA, respectively, for the 12 months to December 2015) the majority of which is included in Schlegel’s result. The divisional head office has been relocated to Bologna, where Giesse is based, and Schlegel’s Milan distribution facility has been closed.

Excluding Giesse, the underlying Schlegel businesses delivered a softer year-on-year sales performance but much improved profitability. These two aspects are related through the FY15 closure of a loss-making Barcelona pile seal factory and more gradual ramp-up of the relocated production equipment in the UK. Lower trading volumes in Brazil compounded by local currency weakness were also a factor behind the underlying divisional revenue performance. More positively, demand across European markets improved, with relative euro strength also boosting the outturn in sterling terms. In monetary terms, the financial value of the underlying EBIT uplift was small in the context of the incremental contribution from Giesse but welcome nonetheless.

In addition to the market comments above, Giesse generated increased commercial hardware sales in the Middle East, feeding into a ‘high single digit’ percentage point revenue increase year-on-year (ie compared to pre-acquisition trading). There has also clearly been some margin improvement in this business. Management maintained previous guidance for €4m synergy benefits to be generated from being integrated with Tyman by 2018 and we believe that some of this should become apparent by the end of the current financial year.

In outlook terms, Giesse will be a key driver of Schlegel’s performance with a full six-month contribution in H216 and annualised effects to come in FY17. Commercial orders can be lumpy and there was some benefit from distributor re-stocking in H1 so management guided to a slower rate of growth in H2. That said, UK pile seal manufacturing should make a more positive impact.

Acquisitions raise net debt levels

Tyman ended FY15 with £81.6m net debt. The H116 period end position was distorted by M&A activity. In underlying terms – excluding M&A – Tyman generated positive free cash flow approaching £4m in the first six months, paid the £10.3m FY15 final dividend and made £1.9m Employee Benefit Trust (EBT) purchases, leaving a net outflow of just over £8m. In addition, there was an adverse US dollar translation effect on net debt of c £12m in sterling terms.

Positive free cash flow in H116: Tyman’s normal annual working capital cycle features a build phase during Q2 and into Q3 and flow back over the remainder of the year, reflecting a stronger H2 seasonal trading pattern in most of its larger markets. In H116, the working capital outflow of £9.8m was almost £8m below the prior year level (which itself was an improvement on H114) and this was largely attributable to the timing impact of US holidays on payables and, to a lesser extent, input price deflation and some site consolidation effects. Together with a stronger EBITDA result (up c £6m y-o-y), trading cash inflow was a very healthy £20m in the first half. Below this line, increased cash tax payments tracking rising profitability and capex also stepped up – being well above depreciation – reflecting US projects as referenced earlier. However, taking all of these items together, Tyman saw a positive H1 FCF performance for the first time in the last four years, during the group’s building products buy and build phase under this management team.

M&A activity expands commercial sector exposure: Tyman has now made three acquisitions in FY16. Two of these (ie Giesse and the smaller Response Electronics deal) were announced with the FY15 results and completed during the half with a combined cash cost of £44.5m during the period (plus c £15m loans acquired). The second significant step into the commercial segment in 2016 came via the acquisition of Bilco, a North American manufacturer of engineered building access and egress products. Around 20% of Bilco’s revenue is in AT’s traditional core residential RMI space, but it also brings greater exposure to the (largely newbuild) commercial cycle. We view Bilco as a highly complementary business that will enable Tyman to build a scale commercial platform in North America. In the 12 months (to March 2016), Bilco generated US$56.9m revenue and US$8.1m EBITDA. Tyman paid a US$71m cash free/debt free consideration, representing 8.8x historic EBITDA, funded from existing facilities and a c 5% placing of new equity at 225p in June (raising £19.1m gross). The deal completed on 1 July.

We expect FY16 year-end net debt to be c £184m: Before acquisition consideration and FX effects, we expect Tyman to be modestly cash positive in FY16 as a whole. This is struck after c £12m non-trading cash costs, including site consolidation moves, transaction fees and integration costs. We summarise the movement in group net debt in H116 and our expectations for H2 and FY16e in Exhibit 2.

Exhibit 2: Tyman net debt bridge for H116 actual and FY16e

H116

H216e

FY16e

Net cash / (debt) – start

(82)

(143)

(82)

Underlying free cash flow

4

18

22

Dividends

(10)

(5)

(16)

EBT purchases

(2)

0

(2)

Underlying cash movement – sub total

(8)

13

4

FX movement (non cash)

(12)

0

(12)

Acquisitions*

(60)

(54)

(114)

New equity

19

0

19

Net cash / (debt) – end

(143)

(184)

(184)

Source: Tyman accounts, Edison Investment Research. Figures are rounded. *Inc. loans acquired/assumed

Our expected year-end debt position of £184m is equivalent to c 2.1x FY17e EBITDA (a proxy pro forma number, including full year acquisition effects), though we may be on the high side for AT capex and restructuring cash costs depending on project phasing. With bank interest cover of c 7x (c 8x on a cash basis), we are comfortable with the current financing position, especially given good momentum and outlook for the company’s largest markets in the US currently.

US (market, acquisitions and FX) supports raised estimates

On recent readings, US employment trends remain positive and consumer confidence broadly stable. In new housebuilding (single dwellings), permitting activity has been largely at healthy levels (though July was lower), while a strong Q2 period for starts and completions continued into July. Existing home sales were on a rising trend during Q2, though available for sale inventory has declined. The aforementioned Harvard LIRA metric suggests that RMI activity is going to accelerate over the next three quarters. Taken together, we believe that the data suggests that spending in Tyman’s US markets will remain firm. The S&P Homebuilders Select Industry Index (comprising US-listed housebuilders, building products suppliers and retailers) has risen by c 15% since the latter stages of June, indicating market confidence in the industry outlook also.

The UK economic outlook is less certain and GfK’s Consumer Confidence survey readings dipped sharply in July following the Brexit result. Alongside reductions in GDP growth expectations, the July UK base rate cut together with other prospective monetary support reinforced perceptions of downside risk. European indicators have generally been more benign with moderate levels of economic growth anticipated.

With regard to our company-level expectations for Tyman, there are three primary elements to our upward revisions compared to our last published estimates, as follows:

Bilco acquisition: earnings enhancement from strategic deal – Tyman has indicated expected integration synergy benefits of “at least” US$2.5m pa attained by 2019 (at a cash cost of US$2.5m), though we see scope for this to grow over time. Bilco lifted our PBT estimates for the three years 2016-18 by £1.6m, £3.5m and £4.3m sequentially. After taking the placing into account, the earnings impact was more marginal.

FX assumptions updated: our model now incorporates US$1.37/£ for FY16 and US$1.32/£ for the following two years (from US$1.43/£ for all three years previously) for the translation of AT revenue, profits and US dollar denominated interest. This has added just over £4m to our group EBIT estimates in a full year and around half of that in FY16. At the PBT level this nets down to additions of c £3m and c £1.4m, respectively.

Underlying: following the H116 results announcement we made a modest increase to EBIT expectations for AT and assumed lower margins at ERA from FY17 to allow for upward input cost pressure. The net result was a minor increase to underlying PBT estimates for FY16 and minor reductions for FY17 and FY18.

The headline changes to group estimates are summarised in Exhibit 3.

Exhibit 3: Tyman estimate revisions

EPS (FD) norm (p)

PBT norm (£m)

EBITDA (£m)

Old

New

% chg.

Old

New

% chg.

Old

New

% chg.

2016e

21.1

22.0

+4.3

51.0

54.5

+6.9

70.0

75.5

+7.9

2017e

23.2

24.5

+5.6

56.1

62.1

+10.7

76.4

86.1

+12.7

2018e

24.8

26.4

+6.5

60.1

67.0

+11.5

80.6

91.3

+13.3

Source: Edison Investment Research. Note: Edison norm includes ‘other’ finance (including borrowing cost amortisation) and excludes ‘other’ (pension net finance costs).


Exhibit 4: Financial summary

£'m

2010

2011

2012

2013

2014

2015

2016e

2017e

2018e

December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

 

 

Group

Continuing

Continuing

 

 

 

 

 

 

Revenue

 

 

266.2

216.3

228.8

298.1

350.9

353.4

451.5

511.6

525.2

Cost of Sales

 

 

(173.4)

(145.2)

(154.0)

(198.8)

(236.1)

(234.0)

(305.6)

(360.7)

(370.5)

Gross Profit

 

 

92.8

71.1

74.7

99.3

114.8

119.4

145.9

151.0

154.7

EBITDA

 

 

40.2

27.7

28.5

39.4

54.6

60.4

75.5

86.1

91.3

Operating Profit (Edison)

 

 

33.7

22.4

23.4

33.0

46.9

52.4

64.9

74.3

79.0

Net Interest

 

 

(8.9)

(5.9)

(3.3)

(3.4)

(4.5)

(6.0)

(9.0)

(10.8)

(10.5)

Other Finance

 

 

(2.9)

(3.6)

(0.9)

0.2

(2.2)

(0.6)

(0.5)

(0.5)

(0.5)

Share Based Payments

 

 

(0.1)

(0.2)

(0.5)

(0.7)

(0.9)

(1.0)

(1.0)

(1.0)

(1.0)

Intangible Amortisation

 

 

(11.7)

(10.6)

(10.8)

(16.6)

(17.8)

(19.6)

(19.6)

(19.6)

(19.6)

Exceptionals

 

 

(0.4)

0.7

(33.4)

(11.4)

(9.3)

(9.4)

(12.0)

(4.0)

(4.0)

Other

 

 

(0.3)

(0.1)

(0.4)

(0.4)

(0.3)

(0.4)

(0.4)

(0.4)

(0.4)

Profit Before Tax (Edison norm)

 

21.9

12.7

18.7

29.2

39.3

44.9

54.5

62.1

67.0

Profit Before Tax (Company norm)

 

24.8

17.4

21.3

28.6

41.6

44.9

54.6

62.2

67.1

Profit Before Tax (FRS 3)

 

 

9.5

2.6

(25.8)

0.8

11.9

15.6

22.6

38.2

43.1

Tax

 

 

(2.5)

6.4

3.7

0.2

(2.6)

(7.9)

(10.5)

(12.8)

(14.2)

Profit After Tax (norm)

 

 

19.4

19.1

22.4

29.4

36.8

37.0

44.0

49.3

52.8

Profit After Tax (FRS 3)

 

 

7.0

9.1

(22.1)

1.0

9.3

7.7

12.1

25.5

28.9

 

 

 

 

 

 

 

 

 

 

 

 

Average Number of Shares Outstanding (m)

 

129.8

129.7

129.7

152.8

167.8

168.2

172.7

177.0

177.0

EPS - Edison normalised (p) FD

 

 

10.7

6.7

9.6

13.9

17.1

19.1

22.0

24.5

26.4

EPS - Company normalised (p) FD

 

 

11.4

9.4

10.2

13.5

18.4

19.2

22.0

24.5

26.4

EPS - FRS 3 (p)

 

 

5.3

6.8

(16.7)

0.6

5.6

4.6

7.0

14.4

16.3

Dividend per share (p)

 

 

2.0

3.4

4.5

6.0

8.0

8.8

9.3

10.3

11.0

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin (%)

 

 

34.9

32.9

32.7

33.3

32.7

33.8

32.3

29.5

29.5

EBITDA Margin (%)

 

 

15.1

12.8

12.5

13.2

15.6

17.1

16.7

16.8

17.4

Operating Margin (before GW and except.) (%)

12.7

10.4

10.2

11.1

13.4

14.8

14.4

14.5

15.0

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

Group

Continuing

Continuing

 

 

 

 

 

 

Fixed Assets

 

 

367.4

352.8

298.1

404.2

410.6

398.4

531.1

526.0

517.5

Intangible Assets

 

 

328.2

312.7

258.7

354.4

355.7

340.5

441.0

424.4

407.7

Tangible Assets

 

 

31.5

30.5

29.8

39.9

42.9

42.8

77.2

85.9

94.1

Investments

 

 

7.7

9.6

9.5

9.8

12.1

15.0

12.9

15.7

15.7

Current Assets

 

 

86.7

96.361

90.7

118.9

124.0

111.0

193.0

220.2

244.1

Stocks

 

 

26.0

26.6

27.6

40.7

47.6

46.0

72.5

85.6

87.9

Debtors

 

 

28.2

24.1

23.7

29.9

31.5

31.7

53.0

60.0

61.6

Cash

 

 

27.7

20.4

35.9

43.6

39.3

30.0

64.1

71.3

91.3

Current Liabilities

 

 

(51.8)

(55.1)

(44.2)

(60.8)

(52.3)

(44.4)

(67.6)

(79.2)

(85.5)

Creditors

 

 

(46.6)

(42.2)

(36.7)

(54.0)

(52.3)

(44.4)

(67.6)

(79.2)

(85.5)

Short term borrowings

 

 

(5.2)

(12.9)

(7.5)

(6.8)

0.0

0.0

0.0

0.0

0.0

Long Term Liabilities

 

 

(163.7)

(144.8)

(96.9)

(161.7)

(176.2)

(156.7)

(314.2)

(313.2)

(312.3)

Long term borrowings

 

 

(114.3)

(100.2)

(63.6)

(115.5)

(128.0)

(111.6)

(248.5)

(248.5)

(248.5)

Other long term liabilities

 

 

(49.4)

(44.6)

(33.3)

(46.2)

(48.2)

(45.1)

(65.6)

(64.7)

(63.8)

Net Assets

 

 

238.6

249.2

247.7

300.6

306.1

308.3

342.3

353.7

363.9

 

 

 

 

0.000

 

 

 

 

 

 

 

CASH FLOW

 

 

Group

Continuing

Continuing

 

 

 

 

 

 

Operating Cash Flow

 

 

38.6

32.6

23.6

38.9

40.1

48.9

62.4

69.4

85.4

Net Interest

 

 

(9.3)

(6.7)

(4.2)

(2.6)

(4.6)

(6.2)

(9.0)

(10.8)

(10.5)

Tax

 

 

(2.3)

(1.9)

(4.9)

(6.2)

(6.3)

(8.9)

(9.0)

(11.3)

(12.7)

Capex

 

 

(3.5)

(4.9)

(6.8)

(8.1)

(10.2)

(10.9)

(22.4)

(23.4)

(23.4)

Acquisitions/disposals

 

 

0.0

(10.3)

51.2

(131.2)

(6.5)

6.8

(98.3)

0.0

0.0

Financing

 

 

0.0

(0.3)

(1.1)

68.1

(4.3)

(2.6)

16.7

(0.0)

0.0

Dividends

 

 

0.0

(2.6)

(5.8)

(7.0)

(10.9)

(14.6)

(15.5)

(16.9)

(18.8)

Net Cash Flow

 

 

23.5

6.0

51.9

(48.2)

(2.8)

12.5

(75.0)

7.1

20.0

Opening net debt/(cash)

 

 

111.0

91.7

92.7

35.2

78.7

88.7

81.6

184.4

177.3

HP finance leases initiated

 

 

(0.0)

(2.7)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

 

 

(4.2)

(4.4)

5.6

4.7

(7.2)

(5.4)

(27.8)

(0.0)

(0.0)

Closing net debt/(cash)

 

 

91.7

92.7

35.2

78.7

88.7

81.6

184.4

177.3

157.2

Source: Company accounts, Edison Investment Research

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals work with leading companies, fund managers and investment banks worldwide to support their capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2016 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Tyman and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

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