10 May 2018 – AGM statement and acquisition
Trading in the year so far has been in line with expectations as the first four months of the year typically see lower absolute levels of activity in the company’s end markets. On a reported basis revenue increased by approximately 1% versus the previous year. Input costs, particularly for metals, remain volatile and each division continues to monitor input pricing closely. The company has also announced the acquisition of Zoo Hardware by its UK Division, ERA. Zoo Hardware is a designer and supplier of architectural hardware for the UK residential and commercial markets, principally sold through the trade distribution channel. In the year ended 31 March 2018, Zoo Hardware reported unaudited revenue of £17.8m and EBITDA of £2.8m. Cost synergy benefits from the acquisition of not less than £0.75m. The Enterprise Valuation for Zoo Hardware is £19.0m on a debt free, cash free basis and subject to adjustments). Of the consideration £1.5m is deferred for two years and £1.4m is in the form of ordinary shares in Tyman. The deal should provide a boost to earnings. Interim result are due out on 25 July 2018. The shares are a BUY.