REG - TT Electronics PLC - AGM Trading Update

TT electronicsAnnouncement

13/05/2022 07:00

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RNS Number : 3507L  TT Electronics PLC  13 May 2022

 

 

13 May 2022

 

TT Electronics plc

 

AGM Trading Update

 

Continued strong order intake, with full year outlook unchanged

 

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 for the four months to the end of
April 2022 (the 'period'), ahead of the AGM taking place later today.

 

Strong Demand Continuing

 

Trading in the period reflects the ongoing healthy growth trends in TT's focus
end-markets and the strength of our customer relationships. Group revenue was
6 per cent higher than the previous year on a constant currency basis and 5
per cent higher on an organic(1) basis.

 

Order intake continues to run well ahead of revenue with book to bill for the
four months running at 151 per cent.

 

Good Operational Execution

 

Overall, the business continues to execute well in the face of COVID
disruption and the well-documented supply chain issues. In the period, our
Power and Connectivity facility in Dongguan was temporarily closed, but our
larger GMS facility in Suzhou, near Shanghai, has remained open.

 

Our Sensors and Specialist Components and GMS divisions are performing well,
whilst the results of our Power and Connectivity division are expected to be
second half weighted. Our well-established self-help initiatives and our
decisive action on pricing continue to effectively offset current cost
inflation.

 

The integration of the Ferranti acquisition is progressing to plan and the
team have already been successful with new business opportunities.

 

Balance Sheet

 

Given the high levels of demand and supply chain constraints, we have
continued to invest in inventory to support the growth of the business. As a
result, our net debt and leverage at the end of June are expected to increase
from the year-end position before reducing to more normalised levels by the
year end.

 

Full year expectations unchanged

 

Whilst macroeconomic conditions remain uncertain, the year has started well,
with continued growth in our end markets, and good execution against the
well-documented challenges.

 

Accordingly, management's outlook for the year as a whole is unchanged.

 

 For further information please contact:

 TT Electronics plc                       Tel: +44 (0)1932 827 779
 Richard Tyson, 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 / Pete Lambie

 ( )

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.   TT will announce its half year results on 4 August 2022.

3.   Latest company compiled view of market expectations shows a consensus
adjusted operating profit of £43.7 million within a range of £41.6 million
to £44.8 million for the year ended December 2022.

 

About TT Electronics

TT Electronics is a global provider of engineered electronics for performance
critical applications.

TT solves electronics challenges for a sustainable world. TT benefits from
enduring megatrends in structurally high-growth markets including healthcare,
aerospace, defence, electrification and automation. TT invests in R&D to
create designed-in products where reliability is mission critical. Products
designed and manufactured include sensors, power management and connectivity
solutions. TT has design and manufacturing facilities in the UK, North
America, Sweden and Asia.

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 information, future events or otherwise.

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