20 April 2017
Hayward Tyler Group plc
("Hayward Tyler", the "Company" or "Group")
Trading Update
and
Notice of Results
Trading Update
Hayward Tyler Group plc, the specialist engineering Group comprising the operating companies of Hayward Tyler and Peter Brotherhood, is pleased to provide the following update on trading for the year ended 31 March 2017. The Group expects to report revenue for the year of c.£63m which is in line with revised expectations. As expected, trading in FY2017 was strongly weighted to the second half of the year and the Group's previously communicated profit guidance remains valid. As announced on 20 February 2017, the Group expects to report a return to Trading EBITDA1 profitability during 2H2017 with a Trading EBITDA1 of £4m-£5m. The Group therefore expects to report that the Group was breakeven at the Trading EBITDA1 level for the full year in line with revised expectations.
Further to the recent updates on new order wins, the Group is delighted to report that order intake2 increased significantly in 2H2017 when compared to 1H2017 with order intake2 of £42.9m in 2H2017, an increase of 68.9% on order intake2 of £25.4m in 1H2017. On an annual basis order intake2 was up 11.2% to £68.3m (FY2016: £61.4m). The order book3 at 31 March 2017 was also encouraging, with an annual increase of 38.0% to £49.8m (at 31 March 2016: £36.1m). By comparison the order book3 at the end of 1H2017 was £48.0m.
Net debt at £22.1m (at 30 September 2016: £18.3m, at 31 March 2016: £8.6m) mainly reflects increased working capital as a result of a significant increase in activity during the final quarter and capital expenditure. Net debt at 31 March 2017 was in line with revised expectations and the Group continues to have constructive discussions with its bank, Royal Bank of Scotland. A further announcement will be made in due course regarding the repayment of the £2.4m of short term banking facilities and annualised measurement of the financial covenants.
Chief Executive Ewan Lloyd-Baker commented:
"The Board and I feel very encouraged by a strong return to Trading EBITDA1 profitability in 2H2017. The robust order book entering the new financial year and the continued strong pipeline, combined with our recent investments in our front-end win order processes and renewed focus on taking cost out of the business, will stand us in good stead to get back on track and deliver significant and cash generative revenue growth to our shareholders."
Notice of Results and Analyst Briefing
The Company will announce its results for the year ended 31 March 2017 on Wednesday 28 June 2017.
An analyst briefing will be hosted by the management team at 10.00am, Wednesday 28 June 2017, at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN. Analysts who wish to attend should contact Buchanan by email at: haywardtyler@buchanan.uk.com to register.
Profit Forecast
The following statement was made by the Company in the announcement made on 20 February 2017 and constitutes a profit forecast for the purposes of Rule 28 of the Code:
"….the Board now anticipates reporting lower revenue for the financial year ending 31 March 2017. This revised revenue is expected to be £60m-£65m, generating Trading EBITDA1 of £4m-£5m in 2H2017 and around breakeven Trading EBITDA1 for the full year."
Hayward Tyler Directors' Confirmation
The Hayward Tyler Directors confirm that the profit forecast remains valid and has been properly compiled based on the unaudited half year financial statements of the Company for the six months ended 30 September 2016 and the unaudited management accounts of the Company for the six months ended 31 March 2017.
The profit forecast has been prepared on a basis consistent with the accounting policies of the Company, which are in accordance with IFRS and are those which the Company applied in the preparation of its financial statements for the year ended 31 March 2016.
1 Trading EBITDA represents the underlying EBITDA performance of Hayward Tyler Group plc
2 Order intake represents contracts for which purchase orders were received from customers in a reporting period
3 Order book represents contracts that had yet to be shipped to customers as at a reporting date
Publication on Website
A copy of this announcement will be made available, subject to certain restrictions relating to persons resident in restricted jurisdictions, at http://htg.global/investor-relations/takeover-code-requirements/ no later than 12.00 noon (London time) on 21 April 2017 (being the business day following the date of this announcement) in accordance with Rule 26.1(a) of the Code. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.
For further information:
Hayward Tyler Group plc +44 (0)1582 731 144
Ewan Lloyd-Baker, CEO
Nick Flanagan, CFO
FinnCap Limited, NOMAD and Broker +44 (0)20 7220 0500
Matt Goode / Emily Watts, Corporate Finance
Tim Redfern / Tony Quirke, Corporate Broking
Buchanan Communications, Financial PR +44(0)207 466 5000
Charles Ryland
Chris Judd
Jane Glover
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.