1 Feb 2017 10:30
1 February 2017
Hayward Tyler Group plc
Update on Order Intake
Update on Banking Facilities and Loan Notes
Senior Executive Hire
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 an update on order intake growth, an update on the Group's banking facilities and loan notes programme and a senior non board appointment.
Good Momentum on Order Intake
Hayward Tyler is pleased to announce that order intake has continued to grow. At the end of December 2016, the increase in order intake contributed to an increase in the order book to £54.6m, a 14% increase from £48.0m at the end of September 2016. As previously highlighted the additional orders have come from both the Hayward Tyler and Peter Brotherhood operating businesses across the power generation, oil and gas and nuclear sectors.
Update on Loan Notes Programme and Banking Facilities
On 14 November 2016 the Group announced that it had reached agreement with its main bank, Royal Bank of Scotland (the "Bank") to amend and restate the Company's multicurrency committed borrowing facilities agreement (the "Revised Agreement"). The amendments included a new repayment schedule including the repayment of £0.6m on 31 December 2016, £3.0m on 31 January 2017 and £0.3m on 31 March 2017. The Group also announced its intention to increase its secured loan note programme (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 Agreement by 31 January 2017.
On 21 December 2016 the Group announced that it had raised £2.1m (of the £3.0m required to be repaid to the Bank by 31 January 2017) following the closing of the 3rd issue of loan notes pursuant to its Loan Note Programme and its intention to conduct a further loan note issue in January 2017. The facility has subsequently been reduced by £0.6m in accordance with the Revised Agreement.
The Group is pleased to announce that it has received expressions of interest in a subsequent Loan Note issue from a number of sophisticated and high net worth investors amounting to over £0.4m. The expressions of interest relate to a 1 year short term note paying an interest rate coupon of 6.75% (the "New Loan Note").
The Group continues to have a supporting relationship with the Bank, which has now agreed to extend the repayment date of the £3.0m short term borrowings under the Group's Revolving Credit Facility due for repayment by 31 January 2017. Further updates regarding the completion of the New Loan Note issue and the repayment of the £3.0m short term borrowings will be made in due course.
Senior Appointment
The Group is also pleased to announce that it has made the senior appointment of Dr Colin Elcoate to the newly created non board position of Chief Commercial Officer ('CCO'). Colin, who will report directly to Ewan Lloyd Baker, CEO, will be responsible for global commercial activity across the Group, a position that is becoming more important with the focus on driving order intake. Colin joins Hayward Tyler from ClydeUnion Pumps and has previously held senior positions at Babcock and Rolls Royce. He is a Fellow of the Institute of Mechanical Engineers and a nuclear expert with over 25 experience. Hayward Tyler's corporate development will undoubtedly benefit from Colin's considerable experience.
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 731 144
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
Tony Quirke, Corporate Broking
Lesmoir-Gordon, Boyle & Co. Ltd - loan note arrangers +44 (0) 20 7518 9892
Andrew Boyle
Angus Grierson
Buchanan Communications, Financial PR +44(0)207 466 5000
Charles Ryland
Chris Judd
Jane Glover