14 Nov 2016 14:49
14 November 2016
Hayward Tyler Group plc
Contract Wins
and
Update on New Banking Facilities
Hayward Tyler Group plc ("HTG", the "Company" or "Group"), the specialist engineering group, comprising the operating companies of Hayward Tyler and Peter Brotherhood, today announces a number of contract wins at both of its operating companies together with revised banking facilities and an intention to increase the Company's loan note programme.
Peter Brotherhood
Peter Brotherhood, which HTG has relaunched since its acquisition in October 2015, has continued to develop and grow its pipeline and begun to convert this into contract wins. Some recent key successes which will contribute towards delivering the "book and fill" requirement for the current financial year include:
- A c.£2.0m contract win due for delivery in FY2018 for a single 10.5mw steam turbine generator set for a waste heat recovery project for a cement plant in Saudi Arabia;
- £1.5m of orders for a number of gearboxes for use in UK based Radar control towers;
- A number of smaller orders totalling c.£0.4m for ongoing spares and support for combined heat and power units of which Peter Brotherhood has a total installed base of over 60 units. These units provide localised power generation for a variety of customers and corporations such as Airbus, Royal Mail, McCains Foods, Peterborough Hospital and in some cases have been for over 20 years with an average fleet availability of over 92%;
- A replacement rotor for a steam turbine in a fertiliser plant in the Middle East valued at over £1.0m for delivery within this fiscal year.
Hayward Tyler
Additionally there has been a recent increase in activity levels at Hayward Tyler, combined with some strategically important contract wins which will also contribute towards delivering the "book and fill" requirement for the current financial year including:
- Multiple new order wins valued at over £2.5m for HT's boiler circulating pumps for boiler makers in China and India, including strategically important customers such as Shanghai Boiler Works and NTPC Ltd (India's largest energy conglomerate) for delivery in FY2018;
- An order valued at over £2.5m from FMC Technologies Inc for permanent magnet subsea motors for deployment in an offshore oil field off the West coast of Africa. This demonstrates further encouraging progress on the back of the previously awarded motors for an offshore oil field in Brazil and further underpins the investment made in the Luton based Centre of Excellence;
- A new order from Southern Company valued at $0.8m for the largest Canned Motor Pump which will ever have been delivered by HT's US facility based in Colchester, Vermont.
Update on revised banking facilities
HTG is also pleased to announce that it has reached agreement with its principal bank, Royal Bank of Scotland, to amend and restate the Company's multicurrency committed borrowing facilities agreement (the "Agreement"). The main changes are a short-term increase in the revolving credit facility ("RCF") of £3.0m to £11.9m and a relaxation of quarterly financial covenants, which will now be measured from 31 March 2017 onwards, to give the Group the financial flexibility to deliver the expected improvement in trading of the business in 2H2017. The new repayment schedule under both facilities is detailed below, and the maturity dates of the committed facilities remain unchanged as follows:
§ £2.9 million term facility1 matures on 30 September 2020; and
§ £11.9 million RCF2 matures on 30 November 2018.
1 repayments of £216,000 on 30 June and 31 December of each year with a final repayment of £1,176,000 on 30 September 2020
2 limit reduces by £600,000 on 31 December 2016, £3,000,000 on 31 January 2017 and £300,000 on 31 March 2017 with a final maturity on 30 November 2018
Loan note programme
HTG established a secured loan note programme of £3.0m in 2015 ("Loan Note Programme") to provide a diversified source of funding. The Company is seeking to increase the Loan Note Programme, initially by £3.0m, in order to maintain a more appropriate maturity profile on the Company's borrowings and repay £3.0m of short-term borrowings due under the RCF by 31 January 2017. The RCF was used to purchase fixed assets for the Centre of Excellence and, accordingly, the new issue under the Loan Note Programme enables the Group to match long-term assets with medium to long-term debt. HTG intends to increase the overall Loan Note Programme from £3.0m to £10.0m, leaving £4.0m already authorised, but not issued, available for further growth opportunities.
Ewan Lloyd-Baker, Chief Executive Officer, commented:
"We are encouraged by the increasing momentum we are seeing in terms of our sales pipeline converting into order intake across both the Hayward Tyler and Peter Brotherhood businesses since the interim period end. A combination of our growing order book and the continuing strong support provided to the Group by our principal bank, Royal Bank of Scotland, provides a solid foundation on which to deliver against management's expectations both this year and beyond."
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
For further information:
Hayward Tyler Group plc +44 (0)1582 731144
Ewan Lloyd-Baker, CEO
Nick Flanagan, CFO
FinnCap Limited-NOMAD and Broker +44(0)20 7220 0500
Matt Goode, Corporate Finance
Emily Watts, Corporate Finance
Tim Redfern, Corporate Broking
Tony Quirke, Corporate Broking
Akur Limited - Corporate Finance Adviser +44 (0) 20 7493 3631
David Shapton
Tom Frost
Siobhan Sergeant
Buchanan Communications, Financial PR +44(0)207 466 5000
Charles Ryland
Chris Judd
Jane Glover