Positive year end outlook

Increasing momentum

 Hayward Tyler encouraged by increasing momentum 

14 November 2016, 14:59 

Source – SMW

Specialist engineering group Hayward Tyler is encouraged by the increasing momentum it is seeing in terms of its sales pipeline converting into order intake.

It says this is across both the Hayward Tyler and Peter Brotherhood businesses since the interim period end.

The group says that Peter Brotherhood, which HTG has relaunched since its acquisition in October 2015, has continued to develop and grow its pipeline and begun to convert this into contract wins.

Additionally there has been a recent increase in activity levels at Hayward Tyler, combined with some strategically important contract wins which will also contribute towards delivering the “book and fill” requirement for the current financial year.

HTG is also pleased to announce that it has reached agreement with its principal bank, Royal Bank of Scotland, to amend and restate the Company’s multicurrency committed borrowing facilities agreement.

The main changes are a short-term increase in the revolving credit facility of £3.0m to £11.9m and a relaxation of quarterly financial covenants, which will now be measured from 31 March 2017 onwards, to give the Group the financial flexibility to deliver the expected improvement in trading of the business in 2H2017.

HTG established a secured loan note programme of £3.0m in 2015 to provide a diversified source of funding. The company is seeking to increase 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 RCF by 31 January 2017.

The RCF was used to purchase fixed assets for the centre of excellence and, accordingly, the new issue under the loan note programme enables the Group to match long-term assets with medium to long-term debt.

HTG intends to increase the overall loan note programme from £3.0m to £10.0m, leaving £4.0m already authorised, but not issued, available for further growth opportunities.

Chief executive Ewan Lloyd-Baker said: “We are encouraged by the increasing momentum we are seeing in terms of our sales pipeline converting into order intake across both the Hayward Tyler and Peter Brotherhood businesses since the interim period end. A combination of our growing order book and the continuing strong support provided to the Group by our principal bank, Royal Bank of Scotland, provides a solid foundation on which to deliver against management’s expectations both this year and beyond.”

The Duke and Duchess of Cambridge bestow the Queens’ Award for Enterprise: International Trade at official opening of Hayward Tyler’s new Centre of Excellence facility

Hayward Tyler Group plc, is delighted to announce the official opening by the Duke and Duchess of Cambridge of its Centre of Excellence. Additionally the Duke and Duchess also made the presentation of the Queen’s Award for Enterprise: International Trade, to Ewan Lloyd-Baker, the Chief Executive of the Hayward Tyler Group.

The Duke and Duchess yesterday opened Hayward Tyler’s new “fit-for-nuclear” facility in Luton, which recently underwent a multi-million pound refurbishment which will support the Group’s long-term growth plans across its international markets. The Centre of Excellence is now the world’s most advanced facility for specialist fluid-filled motor manufacturing.

Commenting on the event, Ewan Lloyd-Baker said; “It was a great pleasure to host the Duke and Duchess to officially open the facility and also to present us with the Queen’s Award, an award that demonstrates the significant progress the Hayward Tyler Group has made, and will continue to make, with the help of everyone at the company.”

“It was a pleasure to have so many of our customers and other stakeholders  witness the Royal visit, and see the outcome of all the hard work we have delivered over the past few years. We were proud to showcase the new facility to our strategic partners and loyal customers who will benefit from our enhanced capabilities.”

R&D Investment up 64%

R&D is a key tenet of our strategy for growth. During FY2016 we increased our expenditure on R&D by 65% to £1.1 million, of which £0.8 million was capitalised (FY2015: £0.4 million).

This R&D was focused on a number of areas that included:

  • New product development
  • Developing a renewable testing system for subsea motors
  • Enhancing our existing product range
  • Finding new applications for existing products in new markets
  • Developing new markets

Investor Relations

HTFH Transformation Project, East Kilbride, Scotland – Phase 1

While HTG is investing in the development of a Centre of Excellence (CoE) in Luton, continuing support for its other global sites (Peter Brotherhood (England), HTFH (Scotland), HTInc (USA), HTK (China) and HTI (India) are being planned on a benefits/cost basis.

In order to future proof the HTFH facility in Scotland a degree of upgrading is required in order to bring its systems, processes, infrastructure and machinery to the desired ISO9 / Fit 4 Nuclear Group level. Using Lean Sigma techniques and processes HTG’s “Transformation Team” have instigated a future proofing improvement project at its HTFH facility in Scotland, supported by the Scottish Enterprise.

The future proofing plan is to modernise the shop floor and systems first by way of consolidating all manufacturing into 2 bays,  allowing the team to bring bay 1 & there after bay 2 up to ISO9 / Fit 4 N particulate level compliance, in order to be able to manufacture Subsea, Nuclear Power and Oil and Gas component parts to the same level of quality as the CoE in Luton.

Several events are being run throughout the year including a Mega 5s event, a Creative-Destructive event, clean lean certification events and site wide communication events. The first phase of the transformation was a Mega 5S event, attended by Rhona Alison, Head of Business Development at Scottish Enterprise.

Marketing, Sales & Operational Planning (M,S&OP) award winning information systems

We are constantly driving operating efficiencies, both internally and in supply chain partnerships – to generate enhanced quality assurance, exceptional peace of mind and confidence for our customers.

Central to HTG’s Centre of Excellence is the continued development of our Marketing, Sales & Operational Planning (M,S&OP) award winning information systems. We have embedded “What-if” scenario planning capability through highly customised Witness Simulation software, to benefit our strategic partners throughout the entire supply chain using predictive simulation technology proven to maximise performance, optimise throughput and resource utilisation. Witness Simulation software also provides significant advantages over real life experimentation in terms of cost, time and repeatability when variability, disruption and complexity exist.

M,S&OP links our sales function with engineering, manufacturing, supply partners and production departments via an in-house, best-in-class, innovative ‘all-in-one’ Epicor (ERP) contract management system. Through a single process flow, we drive all business operations with the flow line system designed and dedicated to each product application. In addition we have developed a unique factory transportation system to optimise fl ow and provide safer working.

Innovation hubs

Driving and facilitating internal processes to drive through our strategy of innovation across the business, the SPEAR (Strategy, Pace, Engagement, Achieving Results) has been formulated. Comprising teams of specialists across Design, Manufacturing, Production, Logistics, Communications and IT, teams are built to collaborate on specific tasks to investigate, analyze, overcome key business issues and facilitate innovation throughout the business.

Within each of our global locations, ‘innovation hubs’ have been designed and built to provide a central ‘operations’ facility to be on hand and local to each of the businesses.