Hayward Tyler Group plc - Results for the year ended 31 March 2017

Hamilton, Bermuda: July 3, 2017 - In a filing with the Bermuda Stock Exchange (“BSX”), Hayward Tyler Group plc ("HTG", the "Company" or "Group"), released their unaudited results for the year ended 31 March 2017.  The full filing stated:

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 its unaudited consolidated results for the year ended 31 March 2017.

Financial Highlights

§  Overall Group revenue was slightly higher at £62.7 million (FY2016: £61.6 million) with the increase due to the full-yearcontribution from Peter Brotherhood;

§  Hayward Tyler revenue was £46.5 million (FY2016: £49.1 million) and Peter Brotherhood revenue was £16.2 million (FY2016: £12.5 million);

§  Underlying gross profit marginwas strong at 43% (FY2016: 41%) ahead of the Group’s KPI target of 35%. Like for like gross profit margin at 28% (FY2016: 33%), which is lower y-o-y due to the lower revenue levels relative to the cost structure;

§  Order intake increased by 11% to £68.3 million, helped by a full year’s contribution from Peter Brotherhood of £16.2 million thus meaning that overall the Group’s order intake KPI target of 1.1x (ratio of order intake to historical revenue) was achieved;

§  The strong second half order intake contributed to a record order book as at 31 March 2017 which stood at £49.8 million, an increase of 38% over the prior year 

§  As at 31 March 2017 net debt comprised term borrowings of £8.2 million (FY2016: £5.9 million), Finance leases of £3.6 million (FY2016: £1.6 million); and drawings under revolving credit facilities of £11.5 million (FY2016: £6.2 million), offset by cash of £1.2 million (FY2016: £5.1 million).

Operational Highlights

§  Ended the year with a record order book and a clear strategy of how to drive further growth in order intake going into the new fiscal year;

§  Revitalisation of Peter Brotherhood already achieving good progress with the brand resurrected, over forty new customer approvals achieved and the first major order won and first significant order shipped;

§  Completion of the major investment in our global Centre of Excellence for specialist motor manufacture and the subsequent build, test and shipment of the world’s first permanent magnet subsea motor;

§  Created a new Group Commercial role and put in place a new structure to support the ‘win-order’ process;

§  Continued to invest in research and development (“R&D”) during the year spending £0.6 million and developing a new partnership with the University of Edinburgh to receive over £0.7 million of grant funding to support the development of a generator to harness wave energy and convert it to power;

§  Hayward Tyler was shortlisted for the Apprentice of the Year, for People and Skills and for World Class Manufacturing and was successful in winning both the Smart Factory Award and also the Leadership & Strategy Award;

§  Welcomed the Duke and Duchess of Cambridge to open the new facility and present Hayward Tyler with the Queen’s Award for Export (International Trade).

Corporate Activity

§  Announcement of recommended offer for the entire issued and to be issued share capital of HTG by Avingtrans PLC, a UK AIM listed engineering group.

Commenting on the performance, outlook and proposed acquisition, Ewan Lloyd-Baker, CEO, said:

“The last year was a challenging one, characterised by different conditions from one half to another. During the second half of the year, we began to see the benefit from the significant investment we have made over the past couple of years combined with improving market conditions beginning to be evident. Despite the first half loss, we have succeeded in communicating our improved service offering across HTG and this has resulted in the development of a healthy order book at £49.8 million.

I am pleased that in Avingtrans we have found a company that understands the long-term nature of our business and the significant opportunities for growth within Hayward Tyler and Peter Brotherhood on the back of our record order book and the improving market fundamentals.   With the major investment in our Luton-based Centre of Excellence now complete, the Peter Brotherhood brand gaining strength, momentum building in our end markets and now the financial security of the Avingtrans balance sheet, we have a solid foundation on which to grow significant shareholder value whilst continuing to develop and improve our people, our products and our processes.

I am incredibly proud of the work that the HTG team has delivered over the past number of years. They have worked tirelessly to deliver quality services and products to our customers, and on behalf of the Board I would like to thank them sincerely.”

For more 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

Akur Limited – Corporate Finance Adviser                              +44 (0) 20 7493 3631

David Shapton

Siobhan Sergeant

Buchanan Communications, Financial PR                              +44(0)207 466 5000

Charles Ryland

Chris Judd

The fill release can be found using the following link:

www.bsx.com/CompanyDocuments/1099938105/HT%20Unaudited%20results%202017.03.31.pdf