20 Feb 2017 07:00
20 February 2017
Hayward Tyler Group plc
("Hayward Tyler", the "Company" or "Group")
Update on trading and continued banking support
Hayward Tyler Group plc ("HTG", the "Company" or "Group"), the specialist engineering Group, comprising the operating companies of Hayward Tyler and Peter Brotherhood, provides the following update for its current and anticipated trading performance and associated banking support.
The Board indicated in its interim results statement that the current financial year would be very much second half weighted. This is, as expected, proving to be the case with aggregate order intake1 of £24.3 million secured in the four months to 31 January 2017, giving order intake for the 10 months to that date of £49.7 million and a significant increase in the order book2 to £52.2 million.
The Board's revenue3 expectations for 2H2017 relied on a number of additional contracts being secured across both Hayward Tyler and Peter Brotherhood in 4Q2017, however, to date there has been a delay in securing a number of these contracts to later in the quarter or FY2018, amounting to over £30 million in aggregate. As a result, the Board now anticipates reporting lower revenue for the financial year ending 31 March 2017. This revised revenue is expected to be £60-65 million, generating Trading4 EBITDA of £4-5 million in 2H2017 and around breakeven Trading4 EBITDA for the full year.
Looking ahead to the next financial year, the Group's pipeline of new business opportunities is very strong, presently amounting to over £500 million through to FY2019 with short-term prospects of over £40 million. Subject to securing further orders that are currently being tendered, the Board anticipates entering FY2018 with a record high order book.
The Group is operating within its current borrowing facilities and it continues to have constructive discussions with its bank, Royal Bank of Scotland, with respect to the repayment of £2.4 million of short term banking facilities, currently extended to 28 February 2017, and to ensure a suitable long term financing structure is in place to support the longer term prospects of the business.
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
1 Order intake means contracts for which purchase orders have been received from customers in a period
2 Order book means contracts for which purchase orders have been received from customers and have yet to be shipped by a period end
3 Revenue comprises (a) revenue recognised on contracts that were in the order book at the beginning of a period plus (b) revenue recognised on contracts in order intake received during the period
4 Trading represents the underlying performance of Hayward Tyler and Peter Brotherhood together with head office costs
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 / Emily Watts, Corporate Finance
Tim Redfern / Tony Quirke, Corporate Broking
Buchanan Communications, Financial PR +44(0)207 466 5000
Charles Ryland
Chris Judd
Jane Glover