Tyman aims to be a market leader in each of the segments that the divisions serve.
Tyman’s strategy creates value for shareholders by:
- increasing revenue through consistent market share gain and pricing discipline;
- maximising margins by eliminating cost and waste from processes; and
- focusing on capital allocation and cash generation.
The Group measures success through a focus on its KPIs which are measured, reported on and challenged at all levels of its business.
Increasing customer value through:
- providing customers with the engineered components they need to add form and function to their end products;
- providing the highest quality product for the relevant price point;
- offering industry-leading levels of service; and
- investing in products and processes such that Tyman is the partner of choice.
Increasing value for Tyman's people through:
- giving employees a modern and safe operating environment and opportunities for career development;
- investment in facilities across all three divisions;
- commitment to improving health and safety across the Group; and
- enhanced training and development programmes.
Increasing value for Tyman's suppliers through:
- the development of strong long term relationships with partner suppliers which adhere to the Group's values and innovation ethos; and
- a number of the Group's products being manufactured by partner suppliers in the Far East under the supervision of Tyman Sourcing Asia.
Increasing shareholder value through:
- focusing on returns through capital allocation and cash generation;
- profitable growth in market share year on year;
- pricing discipline to ensure a fair return on investment; and
- year on year dividend growth.
Substantially all of the components supplied to Tyman’s customers – whether manufactured by divisions in their own plants or sourced externally – are engineering-led, value-added products made to Tyman’s designs, protected where possible and practical by patents and intellectual property and manufactured on the Group’s proprietary tooling.
Tyman believes in establishing an honest and fair long term relationship with suppliers and customers based on value, quality and range of products, industry-leading service and value-added technical support.
Expertise and experience
Tyman invests in its people through employee training, career path development, and improvement of working practices and conditions. Training schemes around the Group include apprenticeship schemes and vocational training, as well as personal development programmes.
Quality and service
The manufacturing decision for Tyman comes back to the Group's desire to differentiate its product offering from the Group's competitors by providing customers with the highest quality product at the relevant price point, delivered to specification on time and in full.
Tyman chooses to manufacture certain products, such as complex balances, extrusions and seals, close to the customer base when flexibility, variety or complexity are key to the component manufacturing process and the customer.
Tyman focuses on financial disciplines that encompass margin targets for each product, close scrutiny of the cost base, optimisation of working capital, and a rigorous approach to return on capital and its allocation, both internally in the form of capital investment and externally in the form of M&A.
Market share gain
Tyman aims to secure profitable market share increases annually through deeper penetration of the existing customer base, the development of new products and winning new customers. The breadth of the Group’s product offering and Tyman's ability to offer engineered solutions to customers means that in each market there remain opportunities for the Group to continue to increase its market share.
Divisions target minimum gross margin thresholds for each product line, and in pricing consider the end to end cost of providing the necessary product and service to customers. For the ultimate customer, wherever they are located, Tyman’s aim is to provide a differentiated product offering at an appropriate price, delivered to specification, on time and in full.
Divisions scrutinise Tyman’s manufacturing and sourcing processes to ensure that they are providing products to the customer in the most efficient manner. Divisions operate rolling programmes of process improvement engineering designed to eliminate unnecessary cost from Tyman's processes and reduce scrap levels.
The Group adopts a rigorous appraisal process for all items of capital expenditure, including system development, in order to ensure that investments are supported by a robust business case. Divisional investment plans are required to provide an attractive return to the Group overall, while also ensuring that Divisions continue to invest in making facilities safe, leading edge and attractive working environments that are fit for purpose for an international manufacturing organisation.
Each division is targeted on conversion of 100.0 per cent. of its underlying operating profit into operating cash.
In any one year, a division may need to invest in working capital in order to support customers’ needs; however, a focus on cash conversion ensures that working capital investment receives the necessary scrutiny.