REG - TT Electronics PLC - Trading Update

TT electronicsAnnouncement

10/11/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221110:nRSJ8935Fa&default-theme=true

RNS Number : 8935F  TT Electronics PLC  10 November 2022

 

 

 

10 November 2022

 

TT Electronics plc

 

In Line Trading Update

 

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 29
October 2022 ("the Period").

 

Strong demand continues

 

The continued strength in our focus end markets, together with our customer
positioning, is reflected in the Group's year-to-date organic(1) constant
currency revenue growth of 18 per cent. Revenue growth has accelerated in the
four months to October as expected, with strong volume growth augmented by
pricing and material pass through costs.

 

Our order intake continues to run ahead of our accelerating revenue growth,
with book to bill of 106% in the four months to October. Overall, for the year
to date, our book to bill is 127%. The order book remains well above historic
levels across the business and provides excellent visibility for 2023.

 

Execution

 

Global supply chain constraints persist alongside continued inflation pressure
from wages, material costs and energy.  Prices are under continuous review to
recover these costs; the ongoing nature of inflation dynamics will mean some
lag in recovery.

 

Balance sheet

 

The Group remains on track to deliver improved cash generation and a year-end
leverage position within our target 1-2x net debt to adjusted EBITDA range.

 

Outlook

 

Despite the challenging backdrop, given the strong performance of the Group,
we expect to report adjusted profit before tax in line with the Board's
expectations for the full year, with benefits of foreign exchange offsetting
the headwinds from increased interest costs.

 

Richard Tyson, TT Chief Executive Officer commented:

 

"Momentum across the Group continues to be strong reflecting our successful
positioning in structural growth markets. The team is executing well against
the ongoing challenging backdrop, and we continue to expect to deliver margin
improvement in the second half.

 

While mindful of the wider macroeconomic backdrop, the continued growth in
order book extends our visibility of revenues for 2023."

 

 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 / 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.   Analyst consensus expectations for 2022 adjusted profit before tax are
in a range of £35.4m to £39.8m.

 

3.   TT will announce its full year results on 8 March 2023.

 

 

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 information, future events or otherwise.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBKCBBOBDDKDK