Despite challenging market conditions and some stiff currency headwinds, supplier of engineered components to the door and window industry Tyman (TYMN) has delivered a healthy set of full-year results and shares in the £484.9 million cap are up 1.5% at 286p. It is however the group's recent acquisitions that are likely to have piqued market interest.


Tyman's ERA division should benefit from the Response Electronics deal which should help accelerate the development of the group's wireless alarms, electronic access and smart home capabilities as well as enhancing distribution channels.

The more eyecatching of the two deals unveiled on results day is the Giesse acquisition which is expected to significantly augment Tyman's European business Schlegel International. Giesse represents the group's first European hardware acquisition but also offers the potential to access a wider market purview.

The Bologna-based aluminium window and door hardware maker gives Tyman local presence for the first time in markets including Argentina, France, Greece, India, Portugal, Turkey and the United Arab Emirates as well as a hardware offer in Brazil, a North American commercial offer and a factory in mainland China. Tyman will doubtless be hoping that they can replicate success of the 2013 Amesbury Truth deal which has proved transformative in the group's North American markets. During 2015, the integration of the Amesbury and Truth businesses generated approximately $8.5 million of cumulative cost and revenue synergies; some 70% higher than the original synergy target announced at the time of the acquisition.

Group revenue in the year to the end of December only edged 0.4% higher to £353.4 million but underlying profit still nudged 11.6% higher while Tyman managed to raise its dividend by 9.4% to 8.75p. Underlyinig net debt fell 12.6% to £83.2 million and Tyman is leveraged 1.35 times. Management did however warn that rationalisation of the group's UK operations and the group's North American footprint project should debt creep higher again in 2016.

Issue Date: 08 Mar 2016