(Alliance News) - Tyman PLC on Thursday said revenue decreased in the first four months of 2024 on tough market conditions, as its takeover by US peer Quanex Building Products Corp nears.
The London-based supplier of window and door components to the construction industry said group revenue fell 5% to GBP205 million on a reported basis, and by 4% on a like-for-like basis, from a year earlier.
Tyman said the fall in like-for-like basis revenue reflected an expected continuation of the "challenging market conditions experienced throughout 2023, during what is a seasonally less important period".
It said its financial performance continues to benefit from a contribution from Lawrence Industries, alongside the effect of previously announced self-help measures.
"The group is continuing to progress its strategic initiatives, including activities to grow market share, the roll-out of the new [enterprise resource planning] system across North America, and preparation for the consolidation of two sites into one in Owatonna," the company said.
Meanwhile, Tyman said it expects its GBP788 million takeover by Quanex to become effective during the second half of 2024, subject to shareholder approval, regulatory approvals, and other customary conditions. It agreed to the deal last month.
"The group continues to perform well against a subdued market backdrop and, whilst leading indicators for our major markets continue to signal a challenging near-term market outlook, the board continues to expect the group to make progress in 2024," said Chief Executive Officer Rutger Helbing.
"The structural growth drivers for the group remain attractive and our market-leading brands and differentiated portfolio of products leave Tyman well placed for the longer term. Our focus remains on taking market share and implementing our self-help measures whilst investing in the business for the future."
Shares in Tyman were down 0.5% to 380.51 pence each in London on Thursday morning.
By Greg Rosenvinge, Alliance News senior reporter
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Tyman (TYMN)