REG - TT Electronics PLC - AGM Trading Update

TT electronicsAnnouncement

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RNS Number : 8582O  TT Electronics PLC  30 June 2025

 

 

30 June 2025

 

TT Electronics plc

 

AGM Trading Update

 

 

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 five months to 31 May 2025
(the "period"), ahead of the AGM taking place later today.

 

Trading update

 

Group revenue in the period was 5.5 per cent lower than the prior year on an
organic(1) basis, with strong performance in Europe offset by headwinds in
Asia and North America.

 

Book to bill in the period for the Group was 101%, underpinned by a strong
performance in Europe driven largely by Aerospace and Defence customers,
offset by continued softness in our North American business and some recent US
order deferrals impacting the Asia region as customer uncertainty around
tariffs continues.

 

Operational progress

 

The initial phase of the strategic review of the Components(3) business
announced in April is progressing well. From 1 July 2025, this business will
be managed separately to provide greater oversight and focus. Following a
detailed review the Board has decided to close the Group's operations in
Plano, Texas. In 2024, the Plano site incurred an operating loss before Group
recharges of £5.7m. We will support customers, employees and suppliers during
the closure process, which is expected to complete by the end of year.

 

We continue to execute the operational improvement plan at our Cleveland, Ohio
site, leveraging specialist external expertise, with an initial focus on
contract profitability, operational efficiency and a review of inventory.  As
noted previously, the full benefits of the improvement plan are expected to be
realised over the longer term.  This is driven by the need for increased
manufacturing volumes in addition to productivity improvements.

 

Outlook

 

The Aerospace and Defence sector remains strong in the current climate.
Elsewhere, the Board remains mindful of the uncertainty created by the
continued challenging market backdrop.  The Board continues to expect
adjusted operating profit for the year to be in line with previous
guidance.(2)

 

The Board notes that given the forecast second half weighting of profits and
cash collection, it is likely that the June 2025 leverage will be slightly
above 2x.

 

 

Commenting Eric Lakin, Acting CEO, said:

"We remain resolutely focused on operational delivery of customer contracts,
building the order book, continuous efficiency actions, and driving overall
performance across the business to maximise shareholder value."

 

Board update

 

The Board will provide an update on the appointment of a permanent CEO in the
second half.

 

Results date

 

The Interim results for the six months to 30 June 2025 will be announced on 24
September 2025. At this time the Company will provide a fuller update on the
workstreams from the Cleveland and Plano projects and the overall Components
review.

 

 

 For further information please contact:

 TT Electronics plc                       Tel: +44 (0)1932 827 779
 Eric Lakin, Acting Chief Executive Officer

 Richard Webb, Interim Chief Financial Officer

 Kate Moy, Head of Investor Relations and Communications

 MHP                                      Tel:  +44 (0)7817 458804
 Tim Rowntree / Ollie Hoare

Notes:

1.   Organic growth is calculated by excluding the impact of exchange rates,
acquisitions and disposals.

2.   The guidance provided at the full year results on 10 April 2025 was
adjusted operating profit for the year within the range of £32 million to
£40 million. Latest company compiled view of market expectations shows a
consensus adjusted operating profit of £34.7 million within a range of £32.0
million to £37.6 million for the year ended December 2025.

3.   The Components business comprises the entirety of the Plano, Texas and
Juarez, Mexico sites, the majority of Mexicali, Mexico and the resistors part
of the Bedlington, UK site.

 

 

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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