Investment case

A compelling way to benefit from an attractive market backdrop.

Our business model and strategy, with sustainability at the core, create high barriers
to entry, and our strong operating margins and cash generation enable us to invest
for growth, whilst maintaining a strong balance sheet and providing a healthy return
to shareholders.

Favourable Market Backdrop
  • Long-term demographics, social change and shift to greater working from home provides a healthy underpin to market growth
  • Housing market fundamentals are supportive over the medium term:
    • Structural housing deficits
    • Ageing housing stock
  • Augmented by favourable window and door market trends in the near term:
    • Sustainability/energy efficiency
    • Compliance and buildingregulations/codes
    • Larger windows, slimmer profiles, contemporary look
    • Smart applications
    • Affordability
Leading position in an attractive North American market
  • US housing market offers very attractive growth prospects despite near-term headwinds:
    • More than 17 million new homes needed in 2020s
    • 24 million homes will reach “prime remodelling” age by 2027
    • 30% increase in new household formation in the 2020s vs. 2010s
  • Tyman is well placed to respond to this attractive market:
    • Leading brands with 40–45% share of served markets
    • National coverage, enabling improved customer service via optimised distribution network and manufacturing redundancy
Sustainability: an increasingly important growth driver
  • Sustainability increasingly important in new product development, capital investment and M&A
  • Energy efficiency, safety and security, and inclusive living all offer Tyman growth opportunities
Proven customer value proposition creates high barriers to entry
  • Deep, integrated customer relationship; strategic partner for customers
  • Broadest portfolio of hardware and sealing solutions in the window and door market
  • Well invested businesses with scale and resilience
  • Leader in customer-centric and market-driven innovation
Healthy operating margins with expansion opportunities
  • Our products comprise just 5–15% of the installed cost of a window or door but deliver significant value to the end user
  • Operating margins set to recover following period of supply chain disruption and inflation
  • Each division has delivered double-digit margins on average since 2018 and each has a clear path to margin expansion
Strong cash generation and balance sheet
  • Adjusted operating cash conversion averages over 100% since 2018 compared to target of 90%
  • Free cash flow as a percent of sales averages 9% since 2018
  • Target net debt:EBITDA range of 1.0–1.5x