LONDON (Alliance News) - Engineering group Hayward Tyler Group PLC on Tuesday said its pretax profit and revenue both fell as it took a hit from the downturn in the oil and gas industry, though it affirmed its expectations for the full year and said its results will be weighted to the second half.
Hayward Tyler, which makes motors and pumps for the power generation and oil and gas industries, said its pretax profit for the half to the end of September fell to GBP1.6 million from GBP1.8 million a year earlier, as revenue fell to GBP21.8 million from GBP24.0 million.
Revenue was dragged lower in part by adverse currency effects and would have risen in constant currencies, but also was hurt by a fall in orders from the oil and gas industry. Engineers serving the oil and gas market have hobbled by companies cutting spending and cancelling projects after the fall in the oil price forced them to cut costs to keep projects economically viable.
Aftermarket revenue was higher for Hayward Tyler, driven by a robust performance for its nuclear operations, but original equipment revenue was dragged lower by the tough conditions in oil and gas markets. Total order intake in the half fell to GBP26.6 million from GBP27.6 million.
The group said it will pay an interim dividend of 0.552 pence per share, up from 0.525 pence per share a year earlier, and said it remains on track to meet its expectations for the full year, albeit with its results weighted to the second half.
Hayward Tyler expects trading in the second half to be driven by a stronger performance in the US and by a higher revenue bias towards nuclear-related spares. It said the overall order outlook for the business remains positive, particularly in the conventional power market.
Shares in the company were down 7.8% to 86.25 pence on Tuesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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