LONDON (Alliance News) - Engineer Hayward Tyler Group PLC on Tuesday said exceptional charges and tough end markets held back its profit in its 2016 financial year, but it anticipates an improvement will emerge in the current year.
Hayward Tyler said pretax profit for the year to the end of March was GBP3.0 million, down from the GBP4.4 million it made a year earlier. In the recent year, the company booked exceptional charges related to the acquisition of Peter Brotherhood, a UK-based engineer, and costs on the sale and leaseback of its property in Peterborough. Stripping out the one-off charges, pretax profit grew to GBP5.1 million from GBP4.4 million.
Revenue grew to GBP61.6 million from GBP48.6 million, up 27% primarily due to the contribution from Peter Brotherhood. On a like-for-like basis, revenue was up 1.0%. Hayward Tyler said it was trading in a difficult market in the financial year, in particular the continued softness in the oil and gas sector, for which the company makes motors and pumps.
But the company said it anticipates a brighter trading picture in the current financial year, helped by improving conditions in the US and a beneficial impact from its Centre of Excellence in Luton, which will help by increasing throughput rates and boosting manufacturing capacity.
Hayward Tyler declared a final dividend of 0.83p, meaning its total payout rises 5.0% to 1.38p from 1.315p.
"The group is well placed to achieve the board's growth ambitions and provided the recent political and economic uncertainty does not dramatically affect all our end markets, the board remains confident in the prospects for the business," said Chief Executive Ewan Lloyd-Baker.
Hayward Tyler shares were up 1.2% to 84.50p Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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