REG - TT Electronics PLC - AGM Trading Update

TT electronicsAnnouncement

10/05/2024 07:00

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RNS Number : 8736N  TT Electronics PLC  10 May 2024

 

 

10 May 2024

 

TT Electronics plc

 

AGM Trading Update

 

Full year outlook unchanged, on track for 10% operating margin target

 

TT Electronics plc ("TT", "the Group"), a global engineer and manufacturer of
electronic solutions for critical applications, publishes the following
trading update on the Group's performance for the four months to 30 April 2024
(the "period"), ahead of the AGM taking place later today.

 

Trading update

 

Group revenue in the period was 2 per cent lower than the previous year on an
organic(1) basis, but 1 per cent higher excluding the impact of pass-through
revenues which continue to reduce.

 

Book to bill in the period was positive at 102 per cent with good performance
in the Europe and Asian regions however, de-stocking continues and is now
expected to normalise during H2. This is impacting our shorter cycle component
products, primarily in North America. We have taken cost action to offset the
lower demand and as a consequence expect the H2 profit weighting to be more
pronounced than normal.

 

We also continue to unlock significant value through our self-help programme,
Project Dynamo, as outlined at our recent Capital Markets Event.

 

The Board's expectations for the year remain unchanged and the business
remains on track to deliver 10 per cent adjusted operating margin in 2024.

 

Commenting Peter France, Chief Executive Officer said:

 

"Whilst there is continuing global macro-economic uncertainty, the outlook for
our markets remains good. The significant orderbook coverage and our prompt
actions across the business underpin the Board's confidence in an unchanged
outlook for the year and the delivery of the 10 per cent operating margin
target.

 

Project Dynamo is progressing at pace and the new organisational structure is
already helping to optimise resources, drive operational standards and
increase customer intimacy as we remain laser focused on efficiency, growth
and innovation."

 

 

 

 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 calculated by excluding the impact of exchange rates,
acquisitions and disposals.

2.   TT will announce its half year results on 8 August 2024.

3.   Latest company compiled view of market expectations shows a consensus
adjusted profit before tax of £46.2 million within a range of £45.0 million
to £47.3 million for the year ended December 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, North America 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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