REG - TT Electronics PLC - Change to Reporting Segmentation <Origin Href="QuoteRef">TTG.L</Origin>

TT electronicsAnnouncement

01/08/2017 12:05

RNS Number : 7467M
TT Electronics PLC
01 August 2017
1 August 2017
TT Electronics plc
Change to Reporting Segmentation
TT Electronics ("TT" or the "Group"), a global provider of engineered electronics for performance critical applications, is today announcing changes to the names and constituent business of its external reporting segments to better reflect how the businesses are managed and organised to address their markets.
Following the announcement on 19 July 2017 that TT has entered in to a conditional agreement for the sale of its Transportation Sensing and Control division, the results of this division will be transferred to discontinued operations.
TT has re-organised its continuing operations to move the Passive Components business from the Advanced Components division into the Industrial Sensing and Control division, with the division being renamed Sensors and Specialist Components. The main driver for bringing these two businesses together is to allow a joined-up approach in their routes to market, facilitating key account management with our distributors and to support future growth. 
The remainder of the Advanced Components division will be renamed Power Electronics, to reflect the change in business mix following the integration of Aero Stanrew into the Group. No change has been made to the Integrated Manufacturing Services division, apart from it being renamed Global Manufacturing Solutions. 
Previously all costs managed centrally were allocated to the divisional segments. Following a review it is now considered more appropriate for head office costs which are not related to the operating activities of the trading units to be held centrally. 
As a result of this change, the continuing operations will be reported under the following divisional segments:
 Sensors and Specialist Components
 Power Electronics
 Global Manufacturing Solutions
The make-up of the new segments and the associated revenues are shown below
Old Segment
Business Unit
New Segment
Industrial Sensing & Control
FY 2016 64.4m
Industrial Sensing & Control
FY 2016 64.4m
Sensors and Specialist Components
FY 2016 129.5m
Advanced Components
FY 2016 121.3m
Passive Components
FY 2016 65.1m
Power Electronics
FY 2016 56.2m
Power Electronics
FY 2016 56.2m
IMS
FY 2016 147.0m
IMS
FY 2016 147.0m
Global Manufacturing Solutions
FY 2016 147.0m


For the purpose of comparison, the Group is today publishing its segmental results for the financial year 2016 and the first half of 2016 on the new basis, as shown below:
Income statement information



2016


million
Sensors and Specialist Components
Power Electronics
Global Manufacturing Solutions
Total
Segments
Corporate
Total Continuing Operations
Sales to external customers
129.5
56.2
147.0
332.7
-
332.7
Segment underlying operating profit 
15.6
5.0
6.3
26.9
(6.3)
20.6







Margin 
12.0%
8.9%
4.3%
8.1%
-
6.2%



H1 2016


million
Sensors and Specialist Components
Power Electronics
Global Manufacturing Solutions
Total
Segments
Corporate
Total Continuing Operations
Sales to external customers
60.6
26.3
72.3
159.2
-
159.2
Segment underlying operating profit 
7.1
1.9
2.4
11.4
(3.1)
8.3







Margin 
11.7%
7.2%
3.3%
7.2%
-
5.2%
Segment assets and liabilities

Assets
Liabilities
million
2016
2016
Sensors and Specialist Components
127.3
21.7
Power Electronics
71.2
11.2
Global Manufacturing Solutions
82.8
25.6
Segment assets and liabilities
281.3
58.5
Discontinued operations
115.4
39.6
Pension liability
-
5.7
Unallocated assets and liabilities
72.7
132.2
Total assets and liabilities
469.4
236.0

Capital expenditure
Depreciation & amortisation
million
2016
2016
Sensors and Specialist Components
8.1
6.3
Power Electronics
2.3
2.4
Global Manufacturing Solutions
5.2
3.5
Total continuing operations
15.6
12.2
For further information please contact:

TT Electronics plc 
Tel: +44 (0)1932 825 300
Mark Hoad, Chief Financial Officer
Emma Darke, Head of Investor Relations and Communications


MHP
Tel: +44 (0)20 3128 8100
Tim Rowntree / Katie Hunt / Ivana Petkova / Hannah Winter

Notes: 
The Group's interim results will be announced on 11 August 2017

This information is provided by RNS
The company news service from the London Stock Exchange
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