Tyman : 2017 Interim results announcement

TYMAN PLC

("Tyman" or the "Group" or the "Company")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

Tyman plc, a leading international supplier of engineered components to the door and window industry, announces unaudited interim results for the six months ended 30 June 2017.

Financial highlights £'m unless stated H1 2017 H1 2016Change CC LFL(1)

Revenue	260.4	201.0	+ 30 %	+ 2 %
Underlying Operating Profit	35.5	27.2	+ 31 %	+ 4 %
Underlying Operating Margin	13.6 %	13.5 %	+ 10 bps	+ 20 bps
Underlying Profit before Taxation(2)	31.4	23.8	+ 32 %	+ 4 %
Underlying EPS(2)	12.09p	9.69p	+ 25 %
Dividend per share	3.50p	3.00p	+ 17 %
Underlying Net Debt	190.4	144.9	+ 31 %
Reported Leverage	2.05x	1.81x	+ 0.24x
Pro forma Leverage(3)	2.05x	2.35x	(0.30)x
Return on Capital Employed	13.8 %	13.1 %	+ 70 bps

1. CC LFL = Constant Currency Like for Like (see Alternative Performance Measures on page 41)

2. H1 2016 comparatives for Underlying Profit before Taxation and Underlying EPS have been restated (see Alternative Performance Measures on page 41)

3. Pro forma Leverage comparator is the Leverage on 1 July 2016, the date of completion of the Bilco acquisition

Statutory financial highlights £'m unless stated H1 2017 H1 2016Change

Profit before	Taxation	17.8	7.8	+ 130 %
Basic EPS	6.65p	3.13p	+ 113 %
Net Debt	189.5	143.5	+ 32 %

Business highlights

• Solid underlying trading performance against a relatively strong comparator period and in line with expectations

• Synergy expectations for the Giesse acquisition increased by 50 per cent. to

  €6.0 million by March 2018

• Continued strong cash generation and year on year deleveraging

• Indications of input cost inflation moderating during the second quarter

• North American and International markets remain positive, UK more subdued

• Well positioned for further progress in the second half

Louis Eperjesi, Chief Executive, commented:

"In the first half, Tyman has delivered a solid trading performance against a relatively strong comparator period and made further progress in the integration of the businesses acquired in 2016 and 2017. As a consequence, we are now in a position to raise the cumulative synergy guidance for the Giesse acquisition by 50 per cent. to €6.0 million by March 2018.

"North American markets showed modest growth in the period with Canadian markets improving and, while UK markets remain relatively subdued, there continues to be consistent and sustained growth in Continental Europe.

"Trading across the Group continues to be in line with management expectations with good cash generation. Tyman is well positioned for further progress in the second half."

Enquiries:

Tyman plc 020 7976 8000

Louis Eperjesi - Chief Executive Officer www.tymanplc.com James Brotherton - Chief Financial Officer

MHP Communications 020 3128 8100

Reg Hoare Ivana Petkova Nessyah Hart

Tyman will host an analyst and investor presentation at 09h30 a.m. today, Tuesday 25 July 2017, at the offices of MHP Communications, 6 Agar Street, London, WC2N 4HN.

The presentation will be webcast at the Group's website - www.tymanplc.com - and the audio conference call details are set out below.

Conference Call Dial In Details

Toll number [phone]

Toll-free number 0800 358 9473

Participant PIN 81445389#

Forthcoming dates

Ex-dividend date 3 August 2017

Dividend record date 4 August 2017

DRIP elections last day 11 August 2017

Dividend payment date 7 September 2017

Autumn trading update 7 November 2017

Full year results announcement 6 March 2018

Notes to editors

Tyman plc is a leading international supplier of engineered components to the door and window industry. The Group's three Divisions - AmesburyTruth, ERA and Schlegel International - are market leaders in their respective geographies.

The Group employs over 3,500 people and operates facilities in 19 countries worldwide. Tyman is listed on the London Stock Exchange under the ticker TYMN.

Further information on the Group and the Group's products are available at the Group's website -www.tymanplc.com.

RESULTS OVERVIEW

Tyman delivered a solid trading performance in the first half against a relatively strong comparator period and made further progress in the integration of the businesses acquired in 2016 and 2017. Trading across the Group continues to be in line with management expectations with good cash generation.

North American markets showed modest growth in the period with Canadian markets improving and, while UK markets remain relatively subdued, there continues to be consistent and sustained growth in Continental Europe.

Revenue recorded in the period was £260.4 million (H1 2016: £201.0 million) an increase of 29.5 per cent. on a reported basis and 2.0 per cent. on a constant currency, like for like basis, with the difference due to the relative weakness of Sterling compared with H1 2016 and contributions from acquisitions.

Underlying Operating Profit increased to £35.5 million (H1 2016: £27.2 million), an increase of 30.6 per cent. on a reported basis and 3.9 per cent. on a constant currency, like for like basis. The Group's Underlying Operating Margin increased slightly to 13.6 per cent. (H1 2016: 13.5 per cent.), despite the dilutive impact of the lower margin Bilco business, with the constant currency like for like Underlying Operating Margin increasing by 20 bps.

During the period, ERA completed the acquisition of Howe Green and responsibility for Bilco UK was transferred to ERA as part of the development of a meaningful commercial offering for the UK market.

Synergy benefits were recorded from both the Bilco and Giesse acquisitions and the Group has increased the targeted cumulative synergies for the Giesse acquisition by 50 per cent. to €6.0 million over the two years to March 2018. These increased synergies will more than offset the reduced savings expected to be derived in 2017 from the North American footprint consolidation project. AmesburyTruth remains committed to the targeted savings from this project of US$10.0 million from 2020.

Input costs increased in most of the Group's markets in the first quarter; with some signs of input cost inflation moderating during the second quarter. The consequent impact on profitability continues to be managed proactively through a combination of effective purchasing, price management and cost reduction programmes.

Operational cash generation was strong in the period, in part due to the Group's 2017 capital investment programme being more weighted towards the second half of the year. Operating Cash Conversion in the twelve months to 30 June 2017 was 99.3 per cent. (LTM to H1 2016: 96.9 per cent.).

Leverage at the period end was 2.05x (H1 2016: 1.81x) which compares favourably with the pro forma Leverage of 2.35x at 1 July 2016, the date the Bilco acquisition completed; and demonstrates the cash generative nature of the Group's businesses.

Leverage is projected to reduce over the second half of the year to within the Group's year end target range of 1.5x to 2.0x.