Tyman pulls guidance, dividend as lockdowns affect trading

(Sharecast News) - Engineered components supplier Tyman pulled its guidance and final dividend on Friday as trading was progressively impacted by the Covid-19 pandemic and increasingly stringent lockdowns in its markets.
Tyman made the decision to cancel its final dividend payment of 8.35p per ordinary share proposed on 5 March, saving the group ?16m, and said future dividend decisions would be made as and when conditions normalise.

The AIM-listed group said it had responded to the pandemic by temporarily closing facilities in the UK and Italy, while sites in North America were currently operating but with "a marked reduction in order intake".

However, Tyman highlighted that it entered the period of volatility with a "robust" balance sheet and has already put in place a broad range of measures with a focus on optimisation of cash flow via cost savings, working capital reduction and tight management of capital expenditure.

Given the unprecedented levels of uncertainty, Tyman also withdrew its previous guidance on future performance but said with the actions being taken, it was "confident" that it was "well-placed" to withstand a prolonged period of reduced trading.

Chief executive Jo Dallas said: "Tyman's inherent strengths including market-leading brands and deep customer relationships position the group to emerge well-placed for future growth once the current crisis recedes."

As of 0930 BST, Tyman shares were down 1.47% at 147.60p.