TIDMTTG
RNS Number : 2038U
TT Electronics PLC
22 November 2023
22 November 2023
TT Electronics plc
Positive underlying trading momentum
TT Electronics plc ("TT", "the Group"), a global provider of
engineered electronics for performance critical applications,
publishes the following trading update on the Group's performance
in the four-month period ended 28 October 2023 ("the Period").
Trading update
The Group continues to show good year over year improvement with
year-to-date organic(1) revenue growth of 4 per cent (5 per cent
excluding the pass-through revenue in GMS). As previously guided,
TT is returning to a more normal H1:H2 weighting of revenue(2) ,
with sales in the four months to October reducing by 8 per cent
organically (5 per cent reduction excluding pass through) against a
strong 2022 comparator.
The performance of our Power & Connectivity division
continues to show good year over year improvement, and GMS is
sustaining its strong margin performance. Trading in Sensors and
Specialist Components has been in line with our expectations other
than the one-off impact of the previously highlighted machinery
breakdown experienced in one of our facilities, which continued for
longer than anticipated, impacting profit in Q3 by circa GBP2m.
As anticipated, we have seen order intake normalisation during
the second half as lead times have reduced, however, order
visibility across the Group remains above historic levels.
Positive financial position
The Group remains on track to deliver much improved cash
generation over last year and a further reduction in leverage.
Outlook
While the Board still expects good year on year improvement in
revenue and profit, as a result of the machinery breakdown in
S&SC we now expect to report Group adjusted profit before tax
towards the lower end of current market expectations for 2023(3)
.
We are mindful of the wider macroeconomic backdrop, but see
continued positive momentum in the business, with a robust order
book providing good visibility of revenues for 2024.
Peter France, TT Chief Executive Officer commented:
"Having joined in October, I have now visited the majority of
our sites, spent time with colleagues and met a number of our
customers and other stakeholders. I have been greatly impressed by
the quality of our people, the strength of our culture and the
depth of our customer relationships.
I am excited about the potential for TT and can already see
opportunities to unlock further value across the business, driving
growth, efficiencies and performance through capitalising on our
positions in the structural growth markets in which we operate. I
look forward to sharing more detailed thoughts shortly after our
FY23 results, as we plan the next phase of our disciplined growth
strategy.
The business continues to show good year over year improvement
and I look forward with confidence."
For further information please
contact:
TT Electronics plc Tel: +44 (0)1932 827 779
Peter France, Chief Executive Officer
Mark Hoad, Chief Financial Officer
Kate Moy, Head of Investor Relations and Communications
MHP Tel: +44 (0)20 3128 8100
Tim Rowntree / Ollie Hoare
Notes:
1. Organic growth is stated at constant currency and is
calculated by comparing current year actual results to prior year
results retranslated at current year actual exchange rates. Organic
revenue excludes the impact of acquisitions and disposals.
2. H1:H2 revenue weighting in FY22 was 44:56, versus a historic norm of 49:51
3. Analyst consensus expectations for 2023 adjusted profit
before tax are in a range of GBP43.1m to GBP46.0m.
4. TT will announce its full year results on 7 March 2024.
About TT Electronics
TT Electronics is a global provider of engineered electronics
for performance critical applications.
The company operates in industries where there are structural
growth drivers, working with market-leading customers primarily in
the industrial, medical, aerospace and defence sectors. Products
designed and manufactured include sensors, power management devices
and connectivity solutions. TT has design and manufacturing
facilities in the UK, US, Sweden and Asia.
The company has three divisions. The Power and Connectivity
division designs and manufactures power application products and
connectivity devices which enable the capture and wireless transfer
of data. We collaborate with our customers to develop innovative
solutions to optimise their electronic systems. The Global
Manufacturing Solutions division provides manufacturing services
and engineering solutions for our product divisions and to
customers that often require a lower volume and higher mix of
different products. We manufacture complex integrated product
assemblies for our customers and provide engineering services
including designing testing solutions and value-engineering. The
Sensors and Specialist Components division works with customers to
develop standard and customised solutions including sensors and
power management devices. Our solutions improve the precision,
speed and reliability of critical aspects of our customers'
applications.
Cautionary statement
This update contains forward-looking statements. These have been
made by the directors in good faith based on the information
available to them up to the time of their approval of this update.
The directors can give no assurance that these expectations will
prove to have been correct. Due to the inherent uncertainties,
including both economic and business risk factors underlying such
forward-looking information, actual results may differ materially
from those expressed or implied by these forward-looking
statements. The directors undertake no obligation to update any
forward-looking statements whether as a result of new inf ormation,
future events or otherwise.
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