Hayward Tyler achieves “transformational” results

Specialist engineering business and the 2015 TMMX Awards Exporter of the Year, Hayward Tyler Group, has announced revenues of £61.6m for FY2015 - an increase of 27% over the previous year.

International finance Hayward Tyler
Hayward Tyler, winners of the 2015 TMMX Awards Exporter of the Year Award, saw trading profit (before tax) up 18% to more than £5m, alongside an expanding order book.

For the 12 months ending March 2015, Hayward Tyler similarly saw trading profit before tax up 18% to more than £5m, alongside an expanding order book.

According to CEO, Ewan Lloyd-Baker, there were a number of contributing factors behind the successful results, including the successful completion of Hayward Tyler’s second acquisition, that of Peter Brotherhood.

Finalised in early November 2015, Hayward acquired the UK manufacturer of steam turbines and gas compressors for US$15m from German industrial stalwart, Siemens.

The purchase complements Hayward’s existing business of electric motors and pumps, while bringing in a number of new customers, such as the Keppel Shipyard.    

Under the headline of “transformation for growth”, Lloyd-Baker explained: “The combination of the Peter Brotherhood acquisition, big investment in our centre of excellence, and a significant increase in our order intake are all positive messages and clear indicators of our plan for future growth for the overall group.”

The CEO continued: “The Hayward Tyler Group, and particularly now with the Peter Brotherhood business, continues to operate against a broad range of geographies and market segments.

Offshore oil platform on the North Sea, in the Norwegian sector
Despite the doom and gloom regarding global oil prices over the past 12 months, Hayward Tyler has actually seen an increase in activity.

“That’s what gives us the encouragement that the order intake that we saw grow significantly will be sustained and we can continue to focus on orders, developing a sales pipeline, and on the win-order process.”   

Hayward Tyler CoE

Building work has now completed at the Luton-based Centre of Excellence (CoE), a site which Hayward Tyler hopes will be the world’s most advanced facility for specialist fluid-filled motor manufacture.

Representing a £10m investment and a 40% expansion to 6,300 sqm, the CoE is expected to enable Hayward Tyler to double production capacity and become certified as Fit For Nuclear (F4N).

Lloyd-Baker explained: “This strategically planned investment will deliver an extended, fit-for-purpose facility and continuous improvement-based environment capable of designing and manufacturing performance-critical motors and pumps for our chosen growth markets.”

Operating markets

Artful is the third Astute class submarine to have been built by BAE Systems.
Peter Brotherhood has a beneficial relationship with Rolls Royce regarding Astute-class submarines – image courtesy of BAE Systems.

Despite the doom and gloom regarding global oil prices over the past 12 months, Hayward Tyler has actually seen an increase in activity, with oil and gas now making up 20% of its order intake.

Lloyd-Baker attributed that to: “Being focused on the sweet spot of performance critical capital equipment to the likes of FMC Technologies for brownfield subsea boosting.”

However, power remains the group’s largest contributing sector, with conventional power generation contributing around half of its business.

Lloyd-Baker added: “We are still seeing relatively consistent levels out of China. India has slowed somewhat, but we anticipate that growing faster moving forward.

“Civil  nuclear grew to 25% of our order intake, mainly off the back of some strong relationships with customers the likes of Sweden and South Korea, alongside the domestic North American market where we’ve got the Vermont facility.

“Peter Brotherhood also has a good relationship with Rolls Royce regarding Astute-class submarines, boats six and seven.” 

Outlook

Looking ahead to the coming 12 months, Lloyd-Baker is confident in Hayward Tyler Groups’ ability to meet market expectations, with a focus very much on the “win-order process” and “converting the business’ strong pipeline”.

He concluded: “We’ve seen some fantastic order wins over the past 12 months in sectors which historically haven’t been doing particularly well, like oil and gas; provided we can convert those  – and I’m sure that we can – I think the future for the Hayward Tyler Group is going to be a positive one.”