REG - TT Electronics PLC - Full Year Results
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RNS Number : 9835X TT Electronics PLC 25 March 2026
25 March 2026
TT Electronics plc
Results for the full year ended 31 December 2025
OPERATIONAL TURNAROUND
IMPROVED
FINANCIAL PERFORMANCE
Key Highlights:
· In a transitional year for the Group, actions taken to address
operational challenges and strengthen accountability supported improved
second-half performance.
· Strong cash generation and a significantly strengthened balance sheet,
with improved organic(1) profitability reflecting:
o Strong performance in Europe driven by momentum in Aerospace &
Defence.
o Actions taken to address underperformance in North America resulted in a
significant improvement in regional performance in 2025.
o Asia impacted by softer EMS demand and customer transfer activity, with
the region better positioned operationally entering 2026.
· Significant operational progress, including ceasing production at the
Plano site, continued improvement at Cleveland facility and completion of the
Components strategic review.
· Book to bill ratio has improved to 109% (2024: 102%), reflecting an
improvement in order intake relative to revenue compared to the previous
year.
Adjusted (1)
2025 2024 Change
Revenue (£m) (organic)(1) 481.4 494.8 (2.7)%
Operating profit (£m) (organic)(1) 37.2 36.4 2.2%
Operating profit margin(4) (%) (organic) 7.7% 7.4% 30bps
Profit before tax (£m) 28.7 27.2 5.5%
Basic earnings per share (p) 6.9 11.0 (37.3)%
Cash Conversion(4) (%) 150% 117% 33%pts
Return on invested capital(4) (%) 13.3% 10.0% 330bps
Statutory
Revenue (£m) 481.4 521.1 (7.6)%
Operating (loss) (£m) (28.2) (23.5) (20.0)%
Operating (loss) margin (%) (5.9)% (4.5)% (140)bps
(Loss) before tax (£m) (36.7) (33.4) (9.9)%
Basic (loss) per share (p) (28.5) (30.2) 5.7%
Net cash from operating activities (£m) 50.0 51.2 (2.3)%
Other KPIs
Free cash flow(4) (£m) 29.9 27.7 7.9%
Net debt (excl. lease liabilities)(4) (£m) (50.3) (80.1) (37.2)%
Leverage(4) 1.1x 1.8x (37.8)%
Financial Highlights:
· Revenue of £481.4 million (2024: £521.1 million), a 7.6% decline
on a statutory basis, reflecting the impact of FX movements and the absence of
revenue from divested businesses. On an organic basis, revenue declined by
2.7%.
· Adjusted operating profit up 2.2% on an organic basis, reflecting
actions taken in North America, including the significant benefit to Plano in
part from last-time-buys, continued strong demand in European Aerospace &
Defence markets, offset by softness in EMS demand.
· Statutory operating loss of £28.2 million (2024: £23.5 million
loss) driven by £65.4 million of one-off charges (2024: £60.6 million),
primarily relating to impairment charges of £41.4 million (2024: £52.2
million) in the North American business and restructuring and other costs of
£15.2 million (2024: £0.1 million credit), the majority of which are
non-cash.
· Adjusted basic earnings per share were 6.9 pence (2024: 11.0
pence), reflecting the increase in adjusted effective tax rate from the
inability to currently recognise a deferred tax asset in respect of US losses.
The statutory basic loss per share was 28.5 pence (2024: 30.2 pence loss).
· Free cash flow was £29.9 million (2024: £27.7 million), with much
improved cash conversion of 150% (2024: 117%), driven mainly by inventory
reduction initiatives. Net cash from operating activities remained strong at
£50.0 million (2024: £51.2 million).
· Net debt (excluding lease liabilities) reduced to £50.3 million
(2024: £80.1 million), with leverage of 1.1x (2024: 1.8x). Revolving Credit
Facility (RCF) expiry date has been extended by 12 months to June 2028 and
facility size reduced to £105.0 million.
Operational Highlights:
· Production at the Plano site ceased at the end of the year as
planned, with last-time buy profit contribution of c.£3.5 million in H2 which
drove a £1.2 million site contribution to group profit for the year. 2025
revenue from the Plano site was £13.0 million.
· Cleveland turnaround is on track, with significant improvements in
operational and financial performance leading to the site breaking even on an
adjusted basis in Q4.
o Future profitability at Cleveland will be supported by ongoing improvement
initiatives together with a drive for growth in order volumes from new and
existing customers to increase factory utilisation.
· Improved inventory management led to £14.8 million of underlying
inventory reductions over the year; this will remain a priority into 2026.
Outlook:
· We enter 2026 with strengthened operational discipline and a more
robust financial position, with structural Aerospace & Defence demand
supporting growth. Targeted actions are underway to improve EMS performance,
however demand in EMS end markets remains mixed, reflecting broader
macroeconomic uncertainty and customer caution.
· Reorganisation to divisional structure of Power, EMS and Components,
which better aligns the business to our customers, markets and operations.
· Cost reduction programme expected to deliver approximately £3 million
net benefit in 2026, with medium-term annualised savings double this level.
· Strategic review of Components business completed, with the Board
assessing a range of options, including a potential disposal subject to market
conditions.
· The Board expects 2026 revenue and adjusted operating profit to be in
line with Company compiled consensus(5).
Eric Lakin, Chief Executive Officer, commented:
"2025 was a year of transition for TT Electronics, and I am pleased to report
an improved financial position of the Group in my first set of annual results
as Chief Executive Officer. During the year, we addressed operational
challenges, strengthened accountability and restored control across the
business, resulting in a materially improved performance in the second half.
We enter the new financial year with a clearer strategic direction and a
stronger platform for growth, underpinned by our four priorities of divisional
realignment, cost reduction, sales transformation and portfolio optimisation.
Whilst we are mindful of the current elevated geopolitical uncertainty, we
remain confident in our ability to deliver further operational and financial
progress over time."
Notes
(1) Throughout this announcement we refer to a number of alternative
performance measures which provide additional useful information. Organic
revenue and organic operating profit are revenue and adjusted operating profit
on a constant currency basis(2) and excluding the impacts of business
disposals (e.g. Project Albert)(3), see APM 1 and APM 2 on page 43. The
Directors have adopted these measures to provide additional information on the
underlying trends, performance and position of the Group with further details
set out in Note 2 on page 30. The adjusted measures are set out in the
reconciliation of KPIs and non IFRS measures on pages 39 to 45.
(2) Constant currency performance is calculated by translating prior period
performance at the current period's FX rates.
(3) Adjusted results exclude the impact of Project Albert, being the
divestment of the Group's business units in Cardiff and Hartlepool, UK, and
Dongguan, China, which completed in Q1 2024.
(4) A reconciliation of KPIs and non-IFRS measures can be found on pages 39 to
45.
(5) Company compiled consensus for 2026 is a range of £477.1m to £487.1m for
revenue, and for adjusted operating profit in a range of £31.9 million to
£37.6million.
For further information, please contact:
TT Electronics
Eric Lakin, Chief Executive Officer
Richard Webb, Interim Chief Financial Officer
Matthew Lee, Investor
Relations
Email: ttelectronics@equitory.com
Jack Bradshaw, Investor Relations
Tel: +44 (0)1932 827
779
Berenberg
Harry Nicholas / Ciaran Walsh
Tel: +44
(0) 2032 077 800
MHP
Tim Rowntree / Ollie Hoare
Tel: +44 (0)
7817 458804
A management presentation for analysts and investors will be held today at
09.00 at Berenberg's offices at 60 Threadneedle Street, London and a webcast
can be accessed at:
https://brrmedia.news/TTG_FY25 (https://brrmedia.news/TTG_FY25)
A recording of the presentation and Q&A session will be available on the
website later in the day.
A PDF of this announcement is available for download from:
https://www.ttelectronics.com/investors/results-reports-presentations/
(https://www.ttelectronics.com/investors/results-reports-presentations/)
About TT Electronics
TT Electronics is a global provider of electronics for performance critical
applications. TT engineers and manufactures electronic solutions enabling a
safer, healthier and more sustainable world. TT benefits from historically
high-growth markets including Healthcare, Aerospace, Defence, Automation and
Electrification. 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 and Asia.
CHIEF EXECUTIVE OFFICER'S REVIEW
2025 was a transitional year for TT Electronics, during which important
strategic progress was made against a backdrop of continued market
uncertainty, leadership transition and a period of increased corporate
activity. The approach by Cicor in the second half of the year demonstrates
the perceived value of the business in our market. Throughout this period, the
business remained focused on meeting customer needs, delivering on its
objectives and building a foundation for future growth.
As outlined at the half year, strong performance in Europe, driven by
Aerospace & Defence (A&D) markets, was offset by challenges in parts
of North America and softer demand in certain Electronic Manufacturing
Services (EMS) end markets, as anticipated. Actions taken in the first half
contributed to the improved performance in the second half, putting the Group
on much stronger footing as we enter 2026.
OPERATIONAL PROGRESS
In North America, we made significant progress in addressing the site-specific
operational issues highlighted earlier in the year. At our Cleveland facility,
the deployment of specialist operational support, together with strengthened
site leadership and tighter operational controls, led to improvements in
productivity, yield, rework, customer service and cost performance. Losses
reduced materially through the year, and performance improved in the second
half, positioning the site for a return to profitability in the medium-term.
At our Plano site production ceased at the end of the year with final product
testing and customer deliveries currently being completed and production
equipment from the site now divested. The site made a positive contribution to
adjusted group profit of £1.2 million in the year as a result of the
last-time-buy profit contribution of c.£3.5 million in H2. Across North
America overall, adjusted operating profit improved to £1.2 million, compared
with a loss of £2.7 million in 2024.
In addition, we completed the transfer of some production from our Suzhou site
in China to our facility in Kuantan, Malaysia, in response to a major customer
requirement to diversify its supply chain. This complex transfer included both
EMS and cable harness programmes and required close collaboration with the
customer to ensure continuity of supply. The successful execution of this
project demonstrates our ability to support customers as they adapt to
changing geopolitical and regulatory environments.
Kuantan is now positioned to support higher production volumes for this
customer and others as supply chains continue to regionalise. Suzhou remains
an important part of our Asia footprint, focused on supporting local and
regional customers as well as new programme opportunities, and continues to
play a key role in our Asia-for-Asia manufacturing strategy. This customer
transfer activity and softer EMS demand meant Asia's adjusted operating profit
reduced by 24% year-on-year but enters 2026 on a stronger operational footing
having completed the production transfer.
Performance in Europe was particularly encouraging, underpinned by sustained
demand in A&D and strong execution across the region. Adjusted operating
profit increased by 17% in Europe, delivering a Group-leading margin of 15.3%,
reflecting improved operational leverage and programme mix. The region secured
several significant long-term programme awards during the year, including new
contracts supporting European defence platforms and next-generation aerospace
applications, reinforcing our position as a trusted supplier on
mission-critical systems.
Renewed organisational focus
Over the year we strengthened the Group's leadership and governance
arrangements. We established a clearer Executive Committee structure,
clarified accountability at site and regional level and improved operational
oversight across the business, which has been central to the progress made in
2025 and to support ongoing execution going into 2026.
Throughout the period of corporate activity in the second half of the year,
management remained focused on the business, our customers and underlying
performance. The Board also used this period to review the Group's
organisational structure and cost base, reinforcing the focus on operational
discipline and performance improvement and creating renewed momentum behind
the Group's strategic and operational priorities.
Strategic assessment of Components business
As announced at the half year, we undertook a strategic assessment of our
Components activities across all four active sites. This work considered the
strategic positioning of the business within the Group's broader portfolio and
its long-term role within TT Electronics.
During 2025, the business was under separate management oversight to ensure
appropriate focus and oversight while the assessment was completed. This
structure contributed to improved operational performance in the second half.
Following completion of the assessment, the Board is evaluating a range of
strategic options for the Components business, including a potential disposal,
with any decision to be guided by value and prevailing market conditions.
Investing in innovation
Engineering is key to our competitive advantage and customer value
proposition. We are committed to investing in technology, products and
capability, especially in power electronics, value-added EMS and specialist
components. During the year, we launched several products and reached key
development milestones including:
· AX-FORCE - a family of smarter, more efficient, flexible power
conversion and control solutions for harsh environments in the A&D market.
This is addressing rapidly growing demand in electrification of systems and
platforms and positions TT with world class, differentiated technology.
· Delivered bespoke power conditioning units designed and developed
by TT for an ultra-long range business jet programme, now undergoing flight
qualification. This reinforces our position as a trusted supplier for
high-performance aviation platforms.
· Expanded capability to manufacture high-power transformers for
classified military applications, establishing significant new capability and
creating a foundation that can be applied to broader high-growth sectors such
as data centre and energy infrastructure.
· Developed manufacturing process capability for high power density
Silicon Carbide (SiC) power modules utilising silver sintering technology,
with delivery of first prototype modules to a major aerospace customer.
· Leverage of our global engineering resources to support a new
customer's nearshoring strategy, establishing local manufacturing and NPI
capability with rapid execution.
· Expansion of our system integration offering to include advanced
precision-machined components, supporting complex assembly and testing for a
global life sciences instrument OEM.
FINANCIAL PROGRESS
For the year ended 31 December 2025, Group revenue was £481.4 million (2024:
£521.1 million), a 7.6% decline on a statutory basis and 2.7% decline on an
organic basis compared with the prior year. This reflected continued strength
in Europe, driven by A&D markets, a contribution from last-time-buy
revenue at our Plano site, offset by softer demand in certain EMS end markets
in North America and Asia.
Adjusted operating profit increased by 2.2% on an organic basis to £37.2
million (2024(2): £36.4 million), with the adjusted operating margin
improving by 30 basis points on an organic basis to 7.7% (2024: 7.4%). This
represented the benefits of operational actions taken earlier in the year
which led to stronger execution in the second half, including improvements in
North America and the decision to close our site at Plano. Strong demand in
European Aerospace & Defence was offset by softness in EMS markets.
Last-time-buy activity in Plano in H2 contributed c.£3.5 million to adjusted
operating profit, which drove a £1.2 million site contribution to Group
profit for the year. In what was a transitional year for the Group, it was
particularly pleasing to deliver results in line with market expectations.
The statutory operating loss was £28.2 million (2024: £23.5 million loss)
driven by £65.4 million of one-off charges (2024: £60.6 million), primarily
relating to restructuring and Goodwill impairment in the North American
business, the latter following a re-assessment of future growth rates and
timing for certain North American businesses where end market demand remains
soft. The majority of the one-off charges are non-cash. The statutory
operating loss margin was 5.9% (2024: operating loss margin 4.5%).
Cash generation was strong, supported by disciplined working capital
management, including significant inventory reduction and improved receivables
performance. Net debt (excluding leases) reduced to £50.3 million at 31
December 2025 (31 December 2024: £80.1 million), with improved leverage of
1.1x (31 December 2024: 1.8x), at the lower end of the Group's target range.
Further detail on the Group's financial performance and cash flow is set out
in the Chief Financial Officer's review.
STRATEGIC PRIORITIES
Following actions taken during 2025, the Group is aligned around a clear set
of strategic priorities focused on improving execution, strengthening margins,
and delivering sustainable free cash flow. Our approach is centred on
disciplined implementation while building on the Group's core engineering and
manufacturing capabilities. Our four strategic priorities are set out below.
Divisional realignment
We are reorganising the Group during 2026 to better align our structure with
our customers, end markets, products and capabilities. This will involve
moving from the current regional structure towards clearer alignment around
Power, EMS and Components. This approach better reflects how the Group
operates and will improve collaboration across sites, support more effective
deployment of resources and align more closely with how customers engage with
the Group.
Sales transformation
Strengthening business development and commercial execution is a key priority
as we enter 2026.
During 2025, we began implementing a sales transformation programme focused on
people, tools and processes, aimed at improving pipeline visibility, order
intake and pricing discipline. This has been supported by investing in the
business development team, enhanced use of CRM, clearer sales accountability
and a renewed drive for new customers and business opportunities. Initial
benefits are being seen with a significant improvement in order intake in H2
compared to H1, driven in part by strength in the A&D market. The
programme remains focused on strengthening performance across the Group,
particularly within EMS in North America and Asia.
Cost reduction
In addition to ongoing continuous improvement activity, we are implementing a
targeted cost reduction programme to simplify the Group's cost base and
support a leaner operating model. This is focused on reducing structural
overheads, devolving greater responsibility to operating sites and improving
efficiency, while maintaining the engineering, manufacturing and customer
service capabilities required to support our core markets.
We expect the programme to deliver a benefit of approximately £3.0 million in
2026, net of contingencies and implementation costs. Over the medium term, we
expect the annualised benefit to increase to double this level as the
programme is fully implemented.
Portfolio optimisation
We continue to review the Group's portfolio on an ongoing basis to ensure it
remains aligned with our strategic priorities and areas of competitive
advantage. This includes maintaining a disciplined, value-led approach to any
potential disposals, including the Components business, as well as considering
selective bolt-on opportunities that enhance capability, technology or market
access in our core sectors. Disciplined capital allocation will remain an
important element of the Group's longer-term objective of improving margin
quality and strengthening returns, including consideration of future
shareholder distributions as performance and leverage allow.
DIVIDEND
Looking ahead, the Board will balance strategic investment in growth with the
objective of building a more financially robust business capable of supporting
shareholder returns. Dividends remain an important component of the Group's
capital allocation framework. No dividend will be paid in respect of 2025;
however, the Board recognises the importance of dividends to shareholders and
will keep the position under review.
GOING CONCERN
In determining the appropriate basis of preparation of the financial
statements, the Directors are required to consider whether the Group can
continue in operational existence for the foreseeable future.
After making enquiries and having considered forecasts and appropriate
sensitivities, the Directors have formed the judgement that there is a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future, being at least 12 months
from the date of these financial statements. More information on the going
concern judgement can be found in Note 2. Accordingly, the financial
statements have been prepared on a going concern basis.
2026 OUTLOOK
Demand in A&D continues to be strong, providing good visibility and
supporting ongoing margin improvement, particularly in Europe. Demand in EMS
end markets remains mixed, reflecting broader macroeconomic uncertainty and
customer caution. Nevertheless, the actions taken during 2025 have
strengthened the Group's operational discipline and financial position.
Entering 2026, the Board is confident that the Group is better positioned to
manage current market conditions and to make further progress through
continued focus on execution and commercial effectiveness. Delivery of the
recently announced cost reduction programme is a key priority and is expected
to provide further support during the year.
The Board expects 2026 revenue and adjusted operating profit to be in line
with Company compiled consensus.
CHIEF FINANCIAL OFFICER'S REVIEW
Adjusted (1)
2025 2024 Change
Revenue (£m) (organic) 481.4 494.8 (2.7)%
Operating profit (£m) (organic) 37.2 36.4 2.2%
Operating profit margin(4) (%) (organic) 7.7% 7.4% 30bps
Net finance expense (£m) (8.5) (9.9) 14.1%
Profit before tax (£m) 28.7 27.2 5.5%
Tax (£m) (16.4) (7.7) (113.0)%
Tax rate (%) 57.1% 28.3% 28.8%pts
Profit after tax (£m) 12.3 19.5 (36.9)%
Weighted average number of shares (m) 177.8 176.9 0.9
Basic earnings per share (p) 6.9 11.0 (37.3)%
Statutory (4)
Revenue (£m) 481.4 521.1 (7.6)%
Operating (loss) (£m) (28.2) (23.5) (20.0)%
Operating (loss) margin(4) (%) (5.9)% (4.5)% (140)bps
Net finance expense (£m) (8.5) (9.9) 14.1%
(Loss) before tax (£m) (36.7) (33.4) (9.9)%
Tax (£m) (13.9) (20.0) 30.5%
Tax rate (%) 37.9% 59.9% (22.0)%pts
(Loss) after tax (£m) (50.6) (53.4) 5.2%
Weighted average number of shares (m) 177.8 176.9 0.9
Basic (loss) per share (p) (28.5) (30.2) 5.7%
Revenue
Group revenue was £481.4 million (2024: £521.1 million). The year-on-year
reduction primarily reflected currency translation headwinds of £10.1 million
and the impact of the divestment of our Cardiff, Hartlepool and Dongguan sites
in Q1 2024, which reduced revenue by £16.2 million.
Trading improved during the second half as operational performance stabilised,
repricing initiatives took effect, and the Group progressed actions to address
underperformance in North America, including the planned cessation of
production at the Plano site. This included a £3.5 million contribution to
adjusted operating profit from last-time buys in H2 which drove a £1.2
million site contribution to group profit for the year.
On an organic basis, revenue declined by 2.7%, or £13.4 million, compared
with the prior year of £494.8 million. This reflected softer demand in
several EMS end markets, particularly in North America and Asia, partly offset
by continued strength in A&D markets in Europe.
End market revenue breakdown
£m 2025 2024 2024
(organic (1))
Revenue 481.4 494.8 521.1
Aerospace & Defence (A&D) 152.8 136.4 142.1
Healthcare 107.8 112.6 118.1
Automation & Electrification (A&E) 140.1 161.1 174.3
Distribution 80.7 84.7 86.6
A&D revenue increased to £152.8 million (2024: £136.4 million),
reflecting continued strength in demand across our European operations and
supporting improved margin quality. A&E revenue declined to £140.1
million (2024: £161.1 million), reflecting softer industrial demand and
customer caution, particularly in North America and Asia. Healthcare revenues
were £107.8 million (2024: £112.6 million), with performance affected by
lower demand in certain medical and life sciences programmes. Distribution
revenues were £80.7 million (2024: £84.7 million), broadly reflecting the
continued normalisation of component demand following elevated levels in prior
years.
Operating profit
The Group delivered adjusted operating profit of £37.2 million (2024(2):
£36.4 million), which was an organic increase of 2.2% reflecting operational
actions taken during the year which drove a stronger second-half performance.
This included a positive contribution from last-time-buy activity at the Plano
site in H2 of c.£3.5 million, which drove a £1.2 million site contribution
to profit for the year.
After recognising £65.4 million of adjusting items (see below), the Group
reported a statutory operating loss of £28.2 million (2024: £23.5 million).
Operating margin
The Group generated an organic adjusted operating margin of 7.7% (2024: 7.4%).
The improvement reflected stronger execution across the business and the
benefits of operational actions taken during the year, partly offset by
headwinds in Asia due to reduced volumes.
On a statutory basis, the Group recorded an operating loss margin of 5.9%
(2024: operating loss margin 4.5%), reflecting the impact of the adjusting
items set out below.
Adjusting items
The Group recognised £65.4 million of items excluded from adjusted operating
profit. These comprised of:
· Restructuring and other costs of £15.2 million (2024: £0.1 million
credit), including approximately £7.0 million relating to the closure of the
Plano facility in the US; £6.1 million of restructuring costs at the
Cleveland facility, including specialist operational support and inventory
write-downs; £1.6 million relating to group management changes reflecting
duplicate costs for senior management transition; and £0.5 million of other
restructuring costs.
· Asset impairment charges of £41.4 million (2024: £52.2 million),
comprising £37.2 million of goodwill attributed to the North American
business and £4.2 million of non-current assets across two sites in North
America.
· Acquisition and disposal-related costs of £4.3 million (2024: £4.5
million), primarily relating to costs incurred in connection with the Cicor
approach.
· Pension restructuring costs of £1.9 million (2024: £1.3 million),
relating to preparation of the UK defined benefit scheme for wind-up.
· Amortisation of acquisition-related intangible assets of £2.6
million (2024: £2.7 million).
Of the above adjusting items, £7.9 million are cash impacting. These relate
to £4.2 million of restructuring costs, primarily associated with Cleveland
and management changes, and £3.7 million of acquisition and disposal-related
costs, mainly relating to the Cicor approach.
Net finance expense
The net finance cost reduced to £8.5 million (2024: £9.9 million) due to
lower interest rates and lower debt levels.
Profitability
Adjusted profit before tax was £28.7 million (2024: £27.2 million). On a
statutory basis, the Group reported a loss before tax of £36.7 million (2024:
£33.4 million loss), reflecting the adjusting items described above.
Adjusted basic earnings per share were 6.9 pence (2024: 11.0 pence). The
statutory basic loss per share was 28.5 pence (2024: 30.2 pence loss).
Taxation
The Group's overall tax charge was £13.9 million (2024: £20.0 million).
The tax charge on adjusted profit before tax was £16.4 million (2024: £7.7
million), resulting in an adjusted effective tax rate (ETR) of 57.1% (2024:
28.3%). The adjusted profit after tax was £12.3 million (2024: £19.5
million) and the statutory loss after tax was £50.6 million (2024: £53.4
million).
This higher than usual tax rate is due to losses in the US and the inability
to currently recognise a deferred tax asset in respect of those losses,
following the derecognition of the deferred tax asset of £16.0 million in
2024, as well as £2.7 million in 2025 due to the near term outlook for the US
businesses. There is insufficient certainty regarding the timing and quantum
of future taxable profits to support deferred tax asset recognition.
The adjusted earnings per share is 6.9p (2024: 11.0p). In the current
period, if a deferred tax asset had been able to be recognised with respect to
current year US losses it is anticipated that this would have reduced the
adjusted effective tax rate to 25.4% and increased the adjusted earnings per
share by 5.1p to 12.0p. The timing of when a deferred tax asset will be able
to be recognised in future years is uncertain and will be based on the future
forecast profitability of the US businesses at the point of recognition.
Cash flow
The table below sets out Group cash flows and net debt movement:
£m 2025 2024
Adjusted operating profit 37.2 37.1
Depreciation and amortisation 12.1 13.8
Impairment of PPE and intangibles 1.0 -
Working capital movement 12.7 (1.2)
Net capital expenditure (7.5) (6.9)
Capitalised development expenditure (1.1) (1.8)
Other 1.4 2.4
Adjusted Operating Cash Flow post-Capex 55.8 43.4
Cash conversion % 150% 117%
Restructuring and acquisition costs (7.9) (0.6)
Net interest and tax (15.3) (20.3)
Lease payments (3.8) (4.2)
Reimbursement from pension schemes net of funding payments 1.1 9.4
Free Cash Flow 29.9 27.7
Dividends - (12.2)
Lease payments 3.8 4.2
Equity issued 0.6 0.8
Disposals - 12.2
Other - (2.1)
Net debt impacting cashflow 34.3 30.6
Opening net debt (97.4) (126.2)
Leases disposed - 2.6
Other non-cash (new leases and lease reassessments) (3.0) (3.2)
FX 1.4 (1.2)
Closing net debt (64.7) (97.4)
Adjusted operating cash flow post capital expenditure was £55.8 million
(2024: £43.4 million). This was supported by a £12.7 million working capital
inflow (2024: £1.2 million outflow), reflecting improved inventory management
and tighter working capital control across the Group. A particular focus on
inventory reduction delivered underlying inventory reductions of £14.8
million during the year.
On a statutory basis, net cash from operating activities remained strong at
£50.0 million (2024: £51.2 million), reflecting robust underlying
profitability and disciplined working capital management.
After net interest and tax payments of £15.3 million, lease payments of £3.8
million, restructuring and acquisition-related cash costs of £7.9 million,
and a £1.1 million inflow relating to the US pension scheme buy-out, the
Group generated free cash flow of £29.9 million (2024: £27.7 million).
Net debt and leverage
Net debt reduced by £32.7 million during the year, supported by strong free
cash flow. After taking into account foreign exchange movements and non-cash
lease adjustments, closing net debt was £64.7 million (2024: £97.4 million)
including £14.4 million of lease liabilities (31 December 2024: £17.3
million). Excluding lease liabilities, net debt was £50.3 million (31
December 2024: £80.1 million).
In line with the Group's borrowing agreements, which exclude the impact of
IFRS 16 leases, the leverage ratio was 1.1x at 31 December 2025 (31 December
2024: 1.8x) and net interest cover was 5.6x (31 December 2024: 4.4x).
The Group's debt facilities include financial covenants requiring leverage to
remain below 3.0x and interest cover to remain above 4.0x. A temporary
amendment to the interest cover covenant was agreed with lenders in late 2024
for the periods to 30 June 2025 and 31 December 2025, reducing the minimum
requirement to 3.0x and 3.25x respectively, providing additional headroom
during the year.
The Group remained compliant with its covenant requirements throughout the
period.
In addition, the Group successfully amended and extended its Revolving Credit
Facility to June 2028, post the year end. It was not necessary to seek further
amendments to the interest cover covenant under the amended and extended
facility, which has reverted to the prior requirement to remain above 4.0x.
The expiry date has been extended by 12 months to June 2028 and facility size
reduced to £105.0 million.
Notes
(1) Throughout this announcement we refer to a number of alternative
performance measures which provide additional useful information. Organic
revenue and organic operating profit are revenue and adjusted operating profit
on a constant currency basis(2) and excluding the impacts of business
disposals (e.g. Project Albert)(3), see APM 1 and APM 2 on page 43. The
Directors have adopted these measures to provide additional information on the
underlying trends, performance and position of the Group with further details
set out in Note 2 on page 30. The adjusted measures are set out in the
reconciliation of KPIs and non IFRS measures on pages 39 to 45.
(2) Constant currency performance is calculated by translating prior period
performance at the current period's FX rates.
(3) Adjusted results exclude the impact of Project Albert, being the
divestment of the Group's business units in Cardiff and Hartlepool, UK, and
Dongguan, China, which completed in Q1 2024.
(4) Statutory results are reported in accordance with IFRS and include the
impact of foreign exchange movements and discontinued operations where
applicable.
(5) A reconciliation of KPIs and non-IFRS measures can be found on pages 39 to
45.
Summary of Adjusted results
To assist with the understanding of earnings trends, the Group has included
within its non-GAAP alternative performance measures including adjusted
operating profit and adjusted profit. Further information is contained in the
'Reconciliation of KPIs and non IFRS measures' on pages 39 to 45.
A summary of the Group's adjusted results, and a reconciliation of statutory
to adjusted profit numbers are set out below:
£m 2025 2024
Operating (loss) (28.2) (23.5)
Adjusted to exclude:
Restructuring and other items
Pension restructuring costs(1) (1.9) (1.3)
Restructuring(2) (15.2) 0.1
(17.1) (1.2)
Asset impairments and measurement losses
Asset impairments(3) (41.4) (52.2)
(41.4) (52.2)
Amortisation of intangible assets arising on business combinations
Amortisation of intangible assets arising on business combinations (2.6) (2.7)
(2.6) (2.7)
Acquisition and disposal related costs
Costs associated with scheme of arrangement with Cicor (4.2) -
Ferranti Power and Control acquisition and integration costs - (0.2)
Disposal costs (Project Albert) - (4.4)
Property sale - 0.7
Other (0.1) (0.6)
(4.3) (4.5)
Total items excluded from adjusted measure (65.4) (60.6)
Adjusted operating profit 37.2 37.1
Loss before tax (36.7) (33.4)
Total operating reconciling items (as above) 65.4 60.6
Adjusted profit before tax 28.7 27.2
Taxation charge on adjusted profit (16.4) (7.7)
Adjusted profit after taxation 12.3 19.5
(1) Pension restructuring costs of £1.9 million (2024: £1.3 million) relate
costs incurred preparing the scheme for buy-out.
(2) Restructuring costs of £15.2 million comprise £7.0 million relating to
closure costs of the Plano manufacturing site, of which £4.8 million relates
to inventory, £6.1 million relating to costs associated with operational
restructuring at the Cleveland manufacturing site, which is predominantly
related to inventory, and £1.6 million relating to costs associated with the
changes in executive leadership.
(3) Asset impairment charges of £41.4 million (2024: £52.2 million),
comprising £37.2 million of goodwill attributed to the North American
business and £4.2 million of non-current assets in North America.
REGIONAL REVIEW: EUROPE
£m Adjusted 2025 2024 Change
Revenue 144.4 146.3 (1.3)%
Operating profit 22.1 18.9 16.9%
Operating profit margin 15.3% 12.9% 240bps
Adjusted & Organic
Revenue(1) 144.4 134.5 7.4%
Operating profit(1) 22.1 19.4 13.9%
Operating margin(1) 15.3% 14.4% 90bps
Statutory
Operating profit 22.1 18.9 16.9%
(1 )See Note 2 on page 30 for an explanation of alternative performance
measures, and APM 2 on page 43 in relation to organic measures which present
revenue and adjusted profit on a constant currency basis, excluding the
impacts of business disposals and adjusting items. Adjusting items are not
allocated to regions for reporting purposes. For further information on these
items please refer to Note 5.
Revenue reduced by 1.3% compared to 2024, with organic growth offset by the
£11.8 million impact of the Q1 2024 disposal of sites in Cardiff and
Hartlepool. Organic revenue increased by 7.4% to £144.4 million (2024:
£134.5 million) driven predominantly by increased demand from our positioning
on long term programmes in A&D, including several significant customer
wins.
Adjusted operating profit increased by 16.9% to £22.1 million (2024: £18.9
million) and increased by 13.9% on an organic basis to £22.1 million (2024:
£19.4 million). This improvement reflected decisive actions to address
underperforming contracts through customer repricing agreements, together with
enhanced engineering capability and associated revenue, improved operational
execution and continued cost discipline. As a result, the adjusted operating
margin increased to 15.3% (2024: 12.9%), and by 90 basis points on an organic
basis.
On a statutory basis, operating profit was £22.1 million (2024: £18.9
million), up 16.9% on the prior year.
Overall order intake for the region was encouragingly strong throughout the
year, with strong organic growth in our core A&D market and positioning
ourselves well with key customers to take advantage of a resurgence in civil
aviation. The book to bill ratio improved to 135% for the region in 2025,
compared to 125% in 2024.
The region is well-positioned for further growth in 2026, led by expanding
A&D markets, continued investment in our customer suite, automation and
digitalisation facilities, and advancement of our technology roadmaps.
Notable contract awards and growth drivers during the year included:
· A new five-year contract with an existing A&D customer to supply
human-machine interface assemblies for a European combat vehicle programme,
strengthening TT's role in mission-critical defence systems.
· Multiple new business wins in the second half across emerging
markets including Electrical Vertical Take-off and Landing (eVTOL),
sixth-generation fighter aircraft and uncrewed platforms, demonstrating the
broadening application of TT's technologies.
· Continuing our strong, long-standing partnership with a large
European A&D prime we have recently announced a sizeable contract to
supply military grade cable harness assemblies for a critical defence
programme. This new contract award leverages TT's exceptional capabilities and
proven track record of supporting critical defence applications worldwide.
REGIONAL REVIEW: NORTH AMERICA
£m Adjusted 2025 2024 Change
Revenue 173.1 184.4 (6.1)%
Operating profit / (loss) 1.2 (2.7) 144.4%
Operating profit margin / (loss) 0.7% (1.5%) 220bps
Adjusted & Organic
Revenue(1) 173.1 179.7 (3.7)%
Operating profit / (loss)(1) 1.2 (2.7) 144.4%
Operating margin / (loss)(1) 0.7% (1.5%) 220bps
Statutory
Operating (loss) (16.1) (18.1) 11.0%
( )
(1 )See Note 2 on page 30 for an explanation of alternative performance
measures, and APM 2 on page 43 in relation to organic measures which present
revenue and adjusted profit on a constant currency basis, excluding the
impacts of business disposals and adjusting items. Adjusting items are not
allocated to regions for reporting purposes. For further information on these
items please refer to Note 5.
Revenue was 6.1% lower than prior year at £173.1 million (2024: £184.4
million) as weaker USD negatively impacted North American performance.
Excluding the impact of FX, organic adjusted revenue declined by 3.7% to
£173.1 million (2024: £179.7 million), reflecting reduced sales at the
Cleveland site and volume headwinds in the Components business. This decrease
was partially offset by new business opportunities in A&D and Healthcare
sectors which drove higher revenues at the Minneapolis and Kansas City sites.
Despite weaker year-on-year revenue performance, operational changes
implemented in North America resulted in improved regional performance, with
adjusted operating profit increasing to £1.2 million (2024: £2.7 million
loss). The adjusted operating profit margin was 0.7% (2024: operating loss
margin 1.5%) reflecting the improved performance in Minneapolis and Kansas
City offset by Cleveland, and c.£3.5 million of Plano last-time-buy activity
in H2 which drove a £1.2 million site contribution to group profit for the
year.
On a statutory basis, North America posted an operating loss of £16.1 million
(2024: £18.1 million loss), which was a 11.0% improvement on the prior year.
Following historic challenges at the site, Cleveland began to benefit from
operational improvement initiatives introduced in the first half, delivering
its highest production efficiency levels in three years alongside further
reductions in scrap and rework. The site is now in a significantly stronger
operational position entering 2026. Further improvement in site profitability
will be reliant on revenue growth, which is a priority for the site.
The Group recognised adjusting items in the period related to the region,
being restructuring costs of £13.1 million (2024: £0.1 million credit)
relating to Plano and Cleveland, as well as impairment charges of £4.2
million (2024: £15.5 million relating to a separate site in the region),
comprising non-current assets across two North American sites.
In addition, goodwill of £37.2 million attributed to the region has been
impaired and recognised within Central adjusting items.
Kansas' improvement trajectory accelerated in the second half, with
productivity gains and customer repricing contributing to improved financial
and operational performance. Major repricing activities have now been
completed, and the site enters 2026 with a strong order book.
Production at the Plano site ceased at the end of the year as planned with
final product testing and customer deliveries currently being completed, and
production equipment from the site divested. The site made a positive
contribution in the second half as a result of last-time-buy activity
associated with the closure, and the action removes a structurally loss-making
facility from the Group's footprint.
Following changes to the business development organisation to increase
capacity, win new contracts, and encourage cross selling, there was a
significant improvement to order intake in H2 and continued growth across all
sites. Notable wins in the period include:
· Cleveland secured three new customers and six new product wins in
the second half - its first new customer wins in three years - reducing
reliance on legacy programmes and supporting future growth.
· Kansas secured several new product awards, including a new
multi-year power supply contract with a long-standing customer.
· A customer in the commercial satellite sector selected the Juarez
facility to supply high-reliability optoelectronics for use in a low earth
orbit satellite programme, reflecting the strength of distributor-led customer
relationships and early-stage design engagement.
The book to bill ratio for the region in 2025 improved to 104%, compared to
98% in 2024.
REGIONAL REVIEW: ASIA
£m Adjusted 2025 2024 Change
Revenue 163.9 190.4 (13.9)%
Operating profit 21.6 28.5 (24.2)%
Operating profit margin 13.2% 15.0% (180)bps
Adjusted & Organic
Revenue(1) 163.9 180.6 (9.2)%
Operating profit(1) 21.6 27.1 (20.3)%
Operating margin(1) 13.2% 15.0% (180)bps
Statutory
Operating profit 21.6 28.5 (24.2)%
( )
(1 )See Note 2 on page 30 for an explanation of alternative performance
measures, and APM 2 on page 43 in relation to organic measures which present
revenue and adjusted profit on a constant currency basis, excluding the
impacts of business disposals and adjusting items. Adjusting items are not
allocated to regions for reporting purposes. For further information on these
items please refer to Note 5.
Revenue performance reduced by 13.9% to £163.9 million (2024: £190.4
million) reflecting foreign exchange headwinds of £5.4 million, the £4.4
million impact of the Q1 2024 disposal of the Dongguan facility in China and a
decline in organic revenue generation of 9.2% to £163.9 million (2024:
£180.6 million). This organic revenue decline reflects reduced demand from
certain EMS customers in the Healthcare and A&E sectors, which were
impacted by continued geopolitical and other related uncertainties.
Adjusted operating profit was £21.6 million (2024: £28.5 million)
representing a decline of 24.2%. This reflects lower volumes, costs associated
with redundancy and the customer transfer programme, foreign exchange
headwinds of £1.1 million, and the impact of the Q1 2024 Dongguan disposal.
On an organic basis the decline was 20.3%. The adjusted operating margin was
13.2% (2024: 15.0%).
On a statutory basis, Asia posted an operating profit of £21.6 million (2024:
£28.5 million), which was down 24.2% on the prior year.
The project to transfer key customer programmes from Suzhou to the Kuantan
facility was successfully completed during the year, positioning the site to
commence mass production volumes in 2026. Kuantan continues to invest in
capability, supply chain resilience and production capacity to support future
regional growth.
Order intake in the Asia region was down compared to the prior year,
reflecting softer end-market demand and the unwinding of safety stock built
ahead of the customer transfer from Suzhou to Malaysia. The region has
strengthened local business development capability in response to the
regionalisation of customer supply chains, where TT is well placed to support
Asia-for-Asia demand. Growing revenues in the region remains a key focus, with
several significant customer wins secured during the year. The book to bill
ratio for the region in 2025 was up marginally at 91%, compared to 88% in
2024.
Operationally, Kuantan made further progress in preparation for higher
volumes, including strengthening the supplier base, expanding warehouse
capacity, and recruiting and training teams to support future mass production.
Capability was also extended to support intercompany cable assembly growth,
alongside the upgrade of warehouse facilities to support EMS growth.
This year marked 25 years and 50 years of operations at Suzhou and Kuantan
sites, respectively, as well as the celebration of 25 years as part of TT
Electronics. Notable wins in the period include:
· Suzhou secured a multi-year, new business award from a
long-standing A&E customer to supply eight assemblies in total, with
production expected to ramp up in the second half of 2026.
· Our Kuantan facility was awarded three new contracts for PCBA
requirements from a long-standing customer in the life science sector. TT
already provides manufacturing for this customer at locations in Suzhou,
Cleveland, and most recently, Mexicali. The customer's selection of this
location and entrusting TT is a testament to the partnership and proven
performance of TT teams globally.
· Suzhou has been awarded a new three-year contract by a leading
medical imaging equipment provider. The award will see Suzhou provide multiple
PCBAs supporting a new product design, demonstrating our success in developing
valuable customer relationships - enabling us to secure positions on new,
medical equipment innovations.
· A longtime customer in the industrial label and printing sector
has awarded Suzhou a three-year contract for PCBA and sub-assemblies
supporting the textile industry. This order reflects our ability to support
this strategic account globally with prototype and NPI capabilities, while
leveraging the Group's best-cost geographies.
CAUTIONARY STATEMENT
This report 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 report. 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.
Consolidated income statement
For the year ended 31 December 2025
£million (unless otherwise stated) Note 2025 2024
Revenue 3 481.4 521.1
Cost of sales (371.3) (411.4)
Gross profit 110.1 109.7
Distribution costs (17.6) (22.9)
Administrative expenses (120.7) (110.3)
Operating loss (28.2) (23.5)
Analysed as:
Adjusted operating profit 3 37.2 37.1
Restructuring costs 5 (15.2) 0.1
Pension restructuring costs 5 (1.9) (1.3)
Asset impairments and measurement losses 5 (41.4) (52.2)
Amortisation of intangible assets arising on business combinations 5 (2.6) (2.7)
Acquisition and disposal related costs 5 (4.3) (4.5)
Finance income 4 0.4 1.6
Finance costs 4 (8.9) (11.5)
Loss before taxation (36.7) (33.4)
Taxation 7 (13.9) (20.0)
Loss for the year attributable to the owners of the Company (50.6) (53.4)
EPS attributable to owners of the Company (pence)
Basic 9 (28.5) (30.2)
Diluted 9 (28.5) (30.2)
Consolidated statement of comprehensive income
For the year ended 31 December 2025
£million 2025 2024
Loss for the year (50.6) (53.4)
Other comprehensive (loss)/ income for the year after tax
Items that are or may be reclassified subsequently to the income statement:
Exchange differences on translation of foreign operations (12.2) 2.9
Tax on exchange differences 1.8 (0.4)
Foreign exchange gain on disposals recycled to income statement - (0.6)
Gain/(loss) on hedge of net investment in foreign operations 2.3 (0.8)
Gain/(loss) on cash flow hedges taken to equity less amounts recycled to the 8.7 (10.2)
income statement
Deferred tax (loss)/gain on movement in cash flow hedges (2.0) 2.4
Items that will not be reclassified to the income statement:
Remeasurement of defined benefit pension schemes 2.8 (2.3)
Tax on remeasurement of defined benefit pension schemes (1.1) 3.1
Total comprehensive loss for the year attributable to the owners of the (50.3) (59.3)
Company
( )
Consolidated statement of financial position
For the year ended 31 December 2025
£million Note 2025 2024
ASSETS
Non-current assets
Right-of-use assets 7.5 9.9
Property, plant and equipment 44.6 49.3
Goodwill 6 64.6 105.4
Other intangible assets 24.5 30.8
Deferred tax assets 7 8.0 13.1
Derivative financial instruments 0.6 -
Pensions 7.4 7.1
Total non-current assets 157.2 215.6
Current assets
Inventories 103.2 132.7
Trade and other receivables 89.5 91.2
Income taxes receivable 3.3 2.9
Derivative financial instruments 2.1 0.7
Cash and cash equivalents 10 38.7 69.2
Total current assets 236.8 296.7
Total assets 394.0 512.3
LIABILITIES
Current liabilities
Borrowings 10 0.1 0.1
Lease liabilities 10 3.6 4.0
Derivative financial instruments 0.5 5.4
Trade and other payables 112.5 120.0
Income taxes payable 14.9 13.1
Provisions 6.8 3.7
Total current liabilities 138.4 146.3
Non-current liabilities
Borrowings 10 88.9 149.2
Lease liabilities 10 10.8 13.3
Derivative financial instruments 0.1 2.4
Deferred tax liability 7 5.7 3.5
Pensions 1.3 1.5
Provisions and other non-current liabilities 1.3 1.2
Total non-current liabilities 108.1 171.1
Total liabilities 246.5 317.4
Net assets 147.5 194.9
EQUITY
Share capital 11 44.7 44.5
Share premium 25.0 24.6
Translation reserve 33.7 41.8
Other reserves 13.0 4.0
Retained earnings 31.1 80.0
Total equity 147.5 194.9
Approved by the Board of Directors on 24 March 2026 and signed on their behalf
by:
Eric Lakin Richard Webb
Director Director
Consolidated statement of changes in equity
For the year ended 31 December 2025
£million Share capital Share premium Translation Reserve Other reserves Retained earnings Total
At 31 December 2023 - restated (1) 44.3 24.0 40.7 11.9 144.6 265.5
Loss for the year - - - - (53.4) (53.4)
Other comprehensive income/(expense)
Exchange differences on translation of foreign operations - - 2.9 - - 2.9
Tax on exchange differences - - (0.4) - - (0.4)
Foreign exchange gain on disposals recycled to income statement - - (0.6) - - (0.6)
Loss on hedge of net investment in foreign operations - - (0.8) - - (0.8)
Loss on cash flow hedges taken to equity less amounts recycled to the income - - - (10.2) - (10.2)
statement
Deferred tax on movement in cash flow hedges - - - 2.4 - 2.4
Remeasurement of defined benefit pension schemes - - - - (2.3) (2.3)
Tax on remeasurement of defined benefit pension schemes - - - - 3.1 3.1
Total comprehensive income/(loss) - - 1.1 (7.8) (52.6) (59.3)
Transactions with owners recorded directly in equity
Equity dividends paid by the Company - - - - (12.2) (12.2)
Share-based payments - - - 2.2 - 2.2
Deferred tax on share-based payments - - - (0.2) - (0.2)
New shares issued 0.2 0.6 - - - 0.8
Payments to fund employee benefit trust - - - (2.1) - (2.1)
Other movements - - - - 0.2 0.2
At 31 December 2024 44.5 24.6 41.8 4.0 80.0 194.9
At 31 December 2024 44.5 24.6 41.8 4.0 80.0 194.9
Loss for the year - - - - (50.6) (50.6)
Other comprehensive income/(expense)
Exchange differences on translation of foreign operations - - (12.2) - - (12.2)
Tax on exchange differences - - 1.8 - - 1.8
Gain on hedge of net investment in foreign operations - - 2.3 - - 2.3
Gain on cash flow hedges taken to equity less amounts recycled to the income - - - 8.7 - 8.7
statement
Deferred tax on movement in cash flow hedges - - - (2.0) - (2.0)
Remeasurement of defined benefit pension schemes - - - - 2.8 2.8
Tax on remeasurement of defined benefit pension schemes - - - - (1.1) (1.1)
Total comprehensive income/(loss) - - (8.1) 6.7 (48.9) (50.3)
Transactions with owners recorded directly in equity
Share-based payments - - - 2.1 - 2.1
Deferred tax on share-based payments - - - 0.3 - 0.3
New shares issued 0.2 0.4 - - - 0.6
Payments to fund employee benefit trust - - - (0.1) - (0.1)
At 31 December 2025 44.7 25.0 33.7 13.0 31.1 147.5
(1. 2023 balances were restated as described in note 1h of the 2024 financial
statements)(.)
Consolidated statement of cash flows
For the year ended 31 December 2025
£million Note 2025 2024
Cash flows from operating activities
Loss for the year(1) (50.6) (53.4)
Taxation 7 13.9 20.0
Net finance costs 8.5 9.9
Restructuring costs and non-underlying asset impairments and remeasurements(1) 5 58.5 53.4
Amortisation, acquisition and disposal related costs 5 6.9 7.2
Adjusted operating profit 37.2 37.1
Adjustments for:
Depreciation 10.9 12.2
Amortisation of intangible assets 1.2 1.6
Impairment of PPE and intangibles 1.0 -
Share-based payment expense 1.9 2.2
Scheme funded pension administration costs 0.8 1.1
Other items (0.5) 0.2
Decrease in inventories 14.8 12.8
Increase in receivables (0.9) (2.2)
Decrease in payables and provisions (2.0) (12.9)
Adjusted operating cash flow 64.4 52.1
Reimbursement from pension schemes net of funding payments 1.1 9.4
Restructuring and acquisition related costs (7.9) (0.6)
Net cash generated from operations 57.6 60.9
Income taxes paid (7.6) (9.7)
Net cash flow from operating activities 50.0 51.2
Cash flows from investing activities
Purchase of property, plant and equipment (8.1) (6.9)
Proceeds from sale of property, plant and equipment and government grants 0.6 0.5
received
Capitalised development expenditure (1.1) (1.8)
Purchase of other intangibles - (0.5)
Proceeds from disposal of business - 17.5
Cash with disposed businesses - (5.3)
Net cash flow (used in)/from investing activities (8.6) 3.5
Cash flows from financing activities
Issue of share capital 11 0.6 0.8
Interest paid (7.7) (10.6)
Repayment of borrowings (59.1) (49.2)
Proceeds from borrowings - 15.1
Capital payment of lease liabilities (3.8) (4.2)
Payments to fund employee benefit trust - (2.1)
Dividends paid by the Company - (12.2)
Net cash flow used in financing activities (70.0) (62.4)
Net (decrease)/increase in cash and cash equivalents (28.6) (7.7)
Cash and cash equivalents at beginning of year 69.1 76.5
Exchange differences (1.9) 0.3
Cash and cash equivalents at end of year 38.6 69.1
Cash and cash equivalents comprise:
Cash at bank and in hand 38.7 69.2
Bank overdrafts (0.1) (0.1)
Cash and cash equivalents at end of year 38.6 69.1
1. The prior year "loss for the period" and "restructuring costs and
non-underlying asset impairments and remeasurements" have been re-presented to
ensure consistency with the presentation of the consolidated income statement.
These revisions do not impact any other balances or sub-totals in this primary
statement.
TT Electronics Plc
Results for the year ended 31 December 2025
1 General information
The information set out below, which does not constitute full financial
statements, is extracted from the audited financial statements
· was approved by the Directors on 24 March 2026;
· have been reported on by the Group's auditor, their report was
unqualified, did not draw attention to any matters by way of emphasis and did
not contain statements under s498(2) or (3) of the Companies Act 2006;
· will be available to the shareholders and the public in April
2026; and
· will be filed with the Registrar of Companies following the
Annual General Meeting.
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
UK adopted International Financial Reporting Standards ("IFRSs") adopted
pursuant to IFRSs as issued by the IASB, this announcement does not itself
contain sufficient information to comply with IFRSs. The Company expects to
publish full financial statement that comply with IFRSs during April 2026.
2 Basis of preparation
Going concern
Following a challenging year for the Group in 2024, 2025 has been a year of
transition with improved operational performance, particularly in the second
half. There was strong performance in Europe, driven by continued momentum in
Aerospace & Defence. Whilst challenging market conditions have persisted
in North America and Asia, actions were taken during 2025 and are expected to
support improved performance as market conditions stabilise. Production at the
Plano site ceased at the end of the year as planned and the Group has seen
continued improvement at the Cleveland facility. Cash generation continues to
be strong, with full year cash conversion at 150%, reducing the level of net
debt, excluding lease liabilities, to £50.3 million (2024: £80.1 million).
The Group enters 2026 with strengthened operational discipline and is
anticipating structural growth in our end markets. The Group has begun
implementing a targeted cost reduction programme to support a leaner operating
model to deliver annualised savings.
Financing
At 31 December 2025 the Group's financial position was strong with access to
total borrowing facilities of £265.3 million comprising:
· A £162.4 million committed revolving credit facility ("RCF"),
signed in June 2022 and maturing in June 2027. The RCF operates on a floating
rate basis tied to GBP SONIA, USD SOFR, or EURIBOR, depending on the loan
currency. As at 31 December 2025, £14.5 million of the available £162.4
million RCF facility had been drawn down. In March 2026 the Group signed an
Amend & Extend agreement which extends the RCF maturity to June 2028 and
reduces the facility size to £105.0 million.
· A £75.0 million fixed-rate loan issued in December 2021 to three
institutional investors, evenly split between 7- and 10-year maturities, with
an average interest rate of 3.65 per cent; and
· £27.9 million in uncommitted facilities (being overdraft lines
and an accordion facility of £17.6 million).
Of these total facilities, the Group had drawn down on £89.5 million as at 31
December 2025 and £85.5 million as at 23 March 2026.
There are no required repayments of principal amounts on any financing prior
to the revised RCF maturity in 2028. Whilst drawdowns on existing facilities
are required within the going concern review period, none of the Company's
forecast models show any requirement for any additional financing beyond the
existing committed facilities.
Financial covenants
The Group's key financing facilities, the RCF and the fixed rate loans have
the same financial covenant metrics relating to debt and interest cover which
measures EBITDA against net debt and net interest. The loan agreements set
these at a maximum debt cover of 3.0 times and a minimum interest cover of 4.0
times. All covenants are measured on a last twelve months basis. Following the
negotiations to extend the RCF facility, covenant measures remain unchanged.
As of 31 December 2025 the calculated ratios for the financial covenants as
defined in the loan agreements were as follows:
· Leverage ratio of 1.1 times; and
· Interest cover of 5.6 times
TT Electronics Plc
Results for the year ended 31 December 2025
2 Basis of preparation continued
Forecasts and covenant compliance
The Group has prepared and reviewed detailed cash flow forecasts for the
period through until 30 June 2027. These forecasts take into account the
Group's financial position and potential impacts of principal risks on
different divisions.
Key assumptions in the Group's financial projections for this period include
revenue growth, operating profit growth and working capital projections. The
Board considers the Company's base case scenario to be an appropriate base
case for the going concern assessment. Under this base case scenario, the
Group retains sufficient liquidity and covenant headroom throughout the
forecast period, with both interest cover and leverage expected to remain well
within covenant limits.
The Group's financial projections have been stress-tested against "business as
usual" risks (such as profit fluctuations, supply chain pressures, and working
capital variances) as well as principal risks, including IT systems and
information, resilience and recovery, general revenue reduction, geopolitical
and research and development. These risks were analysed both individually and
collectively, assuming that all adversely impact EBITDA in all periods. Under
the stress tested modelling, the liquidity headroom within the group remains
adequate throughout the forecast period. Financial covenants continue to be in
compliance under the stress tested model and management have a number of
mitigating actions which could be undertaken if required.
This severe downside scenario reduces EBITDA by £6.9 million, £10.8 million
and £10.6 million for the six months to 30 June 2026, year ended 31 December
2026 and 12 months to 30 June 2027, respectively. At these levels of EBITDA
reduction, the modelling shows that the Group continues to meet the financial
covenants and therefore the modelling shows that severe downside scenario
passing the financial covenants.
In addition to the stress tests described above the Group's stress test
scenario has been sensitised for supply chain challenges and capacity
constraints which shows a reduction in revenue and operating profit compared
to the latest forecast. Despite this further reduction these projections show
that the Group should remain within its facilities headroom and within bank
covenants for the twelve months following the approval of these financial
statements. A "reverse" stress-test was also modelled to understand the
conditions which could jeopardise the ability of the Group to continue as a
going concern including assessing against covenant testing and facility
headroom. The stress testing also considered mitigating actions which the
Group could put in place. Mitigating actions included limiting capital
expenditure and reducing controllable costs including items such as
discretionary bonuses and pay rises. The reverse stress test is deemed to have
a remote likelihood.
The Group's wide geographical and sector diversification helps minimise the
risk of serious business interruption or catastrophic reputational damage.
Furthermore, the business model is structured so that the Group is not overly
reliant on any single customer, market or geography.
In the prior year, the Directors identified and disclosed a material
uncertainty over going concern. This material uncertainty arose in part due to
emerging geopolitical and macroeconomic risks, including uncertainty from the
proposed US tariff regime. These risks were fast moving at the date of signing
the 2024 financial statements with an elevated prospect of a global recession
and stress in the debt market.
During 2025 the tariff position has settled with greater certainty over the
potential impact on the Group. The Group's geographical diversification and
customer spread mean that the direct impact of tariffs is limited and can be
mitigated through management action (for example transfer of production
between sites). The Group has been successful in reducing its level of
borrowings (see above) and now has significant headroom over covenant limits
throughout the forecast period. The Group also made significant operational
progress with improvements in the previously underperforming Cleveland site
and ceasing production at the unprofitable Plano site improving forecast
confidence. The result of these developments during the year, along with
forecast downside and stress testing, have informed the Directors' assessment
that there are no material uncertainties in relation to going concern at the
date of signing the 2025 financial statements.
The Directors have assessed the future funding requirements of the Group with
due regard to the risks and uncertainties to which the Group is exposed and
compared them with the level of available borrowing facilities and are
satisfied that the Group has adequate resources for at least twelve months
from the date of signing. Accordingly, the financial statements have been
prepared on a going concern basis.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group's accounting policies the Directors are
required to make judgements, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other
sources.
The estimates and associated assumptions are based on historical experiences
and other factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of revision and future periods if the revision affects both current and future
periods.
TT Electronics Plc
Results for the year ended 31 December 2025
2 Basis of preparation continued
The Directors have assessed that there is currently no material impact arising
from climate change on the judgements and estimates determining the valuations
within the financial statements. In particular, the Group considered the
impact of climate change in respect of going concern and viability of the
Group over the next three years, forecast cash flows for the purposes of
impairment assessments of non-current assets and the useful lives of certain
assets. Whilst there is currently little short to medium-term impact expected
from climate change, the Directors are aware of the changing nature of risks
associated with climate change and will regularly assess these risks against
judgements and estimates made in preparation of the Group's Consolidated
Financial Statements.
Critical judgements
In the course of preparing the Financial Statements, critical judgements
within the scope of paragraph 122 of IAS 1: "Presentation of Financial
Statements" were made during the process of applying the Group's accounting
policies. These are outlined below.
Adjusting items
Judgements were required as to whether items were disclosed as adjusting, with
consideration given to both quantitative and qualitative factors. Further
information about the determination of adjusting items in the year ended 31
December 2025 is included on pages 32 to 33.
Key sources of estimation uncertainty
Assumptions concerning the future and other key sources of estimation
uncertainty at the balance sheet date, that may have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are discussed below.
• Note 7 - Taxation provisions. Provisions for tax contingencies
require management to make judgements and estimates in relation to tax
authority audits and exposures. Amounts accrued are based on management's
interpretation of country-specific tax law and the likelihood of settlement.
Tax benefits are not recognised unless the tax positions are probable of being
sustained. Once considered to be probable, management reviews each material
tax benefit to assess whether a provision should be taken against full
recognition of the benefit on the basis of potential settlement through
negotiation and/or litigation. These amounts are expected to be utilised or to
reverse as tax audits occur or as the statute of limitations is reached in the
respective countries concerned. The Group's current tax liability at 31
December 2025 includes tax provisions of £12.2 million (2024: £10.4
million). The Group believes the range of reasonable possible outcomes in
respect of these exposures is tax liabilities of up to £16.0 million (2024:
£13.9 million).
• Note 7 - Deferred tax assets. Under IAS 12 a deferred tax
asset can only be recognised if it is considered probable that the business
will achieve a net taxable profit in the near future to utilise the deferred
tax asset. Management determined that the five-year forward looking strategic
plan does not support full recovery of all deferred tax assets within the US,
in the North America segment.
As a result, the Group derecognised deferred tax assets of £2.7 million
(2024: £16.0 million), and did not recognise a deferred tax asset in respect
of current year losses, leaving deferred tax assets of £7.6 million (2024:
£9.2 million) which offset against the US deferred tax liabilities. The
charge was recognised in items excluded from adjusted profit after tax (note
5). Should recovery of these US deferred tax assets become probable this would
cause the Group to recognise up to an additional £18.7 million (2024: £16.0
million) of deferred tax assets and a credit would be recognised in items
excluded from adjusted profit. A further £7.9 million of deferred tax assets
in respect of current year losses could also be recognised.
• Note 5 - Property, plant and equipment. Determining whether
assets are impaired requires an estimation of the value in use of the entities
within the Group. Impairment calculations require an estimation of the future
cash flows to be generated from those assets. Future cash flows are a key
source of estimation uncertainty and are derived from other estimates
including a suitable discount rate to calculate the present value.
During the year, property, plant and equipment at one North American site was
impaired by £0.8 million which was recognised in items excluded from adjusted
operating profit. This site, which holds property, plant and equipment with a
net book value of £6.5 million, is currently loss making and, if it does not
return to profitability there would be a further impairment up to the residual
value of the asset. A 15 per cent decrease in the estimated future cashflow at
this site would result in an additional impairment of £1.0 million. A 12 per
cent increase in future cashflows would have resulted in no impairment at the
site. Should the site see an increase in cash flows in the future, the
impairment will be reversed.
TT Electronics Plc
Results for the year ended 31 December 2025
2 Basis of preparation continued
Alternative performance measures
The Group presents Alternative Performance Measures ("APMs") in addition to
the statutory results of the Group. These are presented in accordance with the
guidelines on APMs issued by the European Securities and Markets Authority
("ESMA").
Adjusted operating profit has been defined as operating profit from continuing
operations excluding the impacts of significant restructuring programmes,
significant one-off items including property disposals, impairment charges
significant in nature and/or value, certain one-off pension costs, business
acquisition, integration, and divestment related activity, and the
amortisation of intangible assets recognised on acquisition. Acquisition and
disposal related items include the writing off of the pre-acquisition profit
element of inventory written up on acquisition, other direct costs associated
with business combinations and adjustments to contingent consideration related
to acquired businesses. Restructuring includes cost of management changes,
significant costs associated with restructuring operations and facilities,
including the movement and closure of production facilities. Costs associated
with restructuring, acquisitions and disposals are uncertain with regard to
their timing and size and therefore their inclusion within operating profit
could mislead the reader of these accounts. Adjusted operating profit is not a
defined term under IFRS and may not be comparable with similarly titled profit
measures reported by other companies. It is not intended to be a substitute
for, or superior to, GAAP measures. All APMs relate to the current year
results and comparative years where provided.
In addition to the items above, adjusting items impacting profit after tax
include:
• The net effect on tax of significant restructuring from strategy changes
that are not considered by the Group to be part of the normal operating costs
of the business;
• The write off of deferred tax assets in North America; and
• The tax effects of adjustments to profit before tax.
These APMs have been selected by the Directors to assist them in making
operating decisions because they represent the underlying operating
performance of the Group and facilitate internal comparisons of performance
over time.
Alongside the statutory results, the Directors consider the adjusted results
to be an important measure used to monitor how the businesses are performing
as this provides a meaningful reflection of how the businesses are managed and
measured on a day-to-day basis and achieves consistency and comparability
between reporting periods.
3 Segmental reporting
The Group is organised into three regions, as shown below. Each of these
regions represents an operating segment in accordance with IFRS 8 'Operating
segments' and there is no aggregation of segments. The chief operating
decision maker is the Chief Executive Officer. The operating segments are:
· Europe - the Europe segment encompasses all the Group's European
operations comprising the manufacturing sites in Sheffield, Bedlington,
Manchester, Barnstaple, Nottingham, Abercynon, Fairford and Eastleigh as well
as the European sales offices. The regional segment is supported by a
leadership team who have functional responsibilities that span the individual
entities within the business;
· North America - the North America segment encompasses all the
Group's North American operations comprising Juarez, Mexicali, Dallas,
Minneapolis, Kansas, Denver, Cleveland and Boston. The regional segment is
supported by a leadership team who have functional responsibilities that span
the individual entities within the business;
· Asia - the Asia segment encompasses all the Group's Asian
operations comprising the manufacturing sites in Suzhou and Kuantan and the
Singapore sales office. The regional segment is supported by a leadership team
who have functional responsibilities that span the individual entities within
the business.
The key performance measure of the operating segments is adjusted operating
profit. Refer to the section titled 'Reconciliation of KPIs and non-IFRS
Measures' for a definition of adjusted operating profit.
Corporate costs - Resources and costs of the head office managed centrally but
deployed in support of the operating units are allocated to segments based on
a combination of revenue and adjusted operating profit.
Resources and costs of the head office which are not related to the operating
activities of the trading units are not allocated to regions and are
separately disclosed, equivalent to the segment disclosure information, so
that reporting is consistent with the format that is used for review by the
chief operating decision maker. This gives greater transparency of the
adjusted operating profits for each segment.
The accounting policies of the reportable segments are the same as the Group's
accounting policies.
TT Electronics Plc
Results for the year ended 31 December 2025
3 Segmental reporting continued
Group financing (including finance costs and finance income) and income taxes
are managed on a Group basis and are not allocated to operating segments.
Goodwill is allocated to the segments which comprise groups of cash generating
units as this is the level at which goodwill is monitored.
a) Income statement information
2025
£million Europe North America Asia Total Operating Segments Central Total
Sales to external customers 144.4 173.1 163.9 481.4 - 481.4
Adjusted operating profit 22.1 1.2 21.6 44.9 (7.7) 37.2
Add back: adjustments made to operating profit (note 5)(1) - (17.3) - (17.3) (48.1) (65.4)
Operating profit/(loss) 22.1 (16.1) 21.6 27.6 (55.8) (28.2)
Net finance costs (8.5)
Loss before taxation (36.7)
1. Adjustments made to Central operating profit include £37.2 million of
goodwill relating to the North America segment as all goodwill is held
centrally on consolidation
( )
2024
£million Europe North America Asia Total Operating Segments Central Total
Sales to external customers 146.3 184.4 190.4 521.1 - 521.1
Adjusted operating profit 18.9 (2.7) 28.5 44.7 (7.6) 37.1
Add back: adjustments made to operating profit (note 5)(1) - (15.4) - (15.4) (45.2) (60.6)
Operating profit/(loss) 18.9 (18.1) 28.5 29.3 (52.8) (23.5)
Net finance costs (9.9)
Loss before taxation (33.4)
1. Adjustments made to Central operating profit include £36.7 million of
goodwill relating to the North America segment as all goodwill is held
centrally on consolidation
b) Geographic information
Revenue by destination
The Group operates on a global basis. Revenue from external customers by
geographical destination is shown below. Management monitors and reviews
revenue by region rather than by individual country given the significant
number of countries where customers are based.
£million 2025 2024
United Kingdom 100.4 111.8
Rest of Europe 83.1 71.6
North America 189.0 214.6
Asia 106.4 122.6
Rest of the World 2.5 0.5
481.4 521.1
Revenue from services is less than 1% of Group revenues. All other revenue is
from the sale of goods.
TT Electronics Plc
Results for the year ended 31 December 2025
3 Segmental reporting continued
c) Market information key customers
The Group operates in the following markets:
£million 2025 2024
Healthcare 107.8 118.1
Aerospace and defence 152.8 142.1
Automation and electrification 140.1 174.3
Distributors 80.7 86.6
481.4 521.1
The Group had no customers who contributed greater than 10% of revenues in
2025 or 2024.
4 Finance costs and finance income
£million 2025 2024
Interest income 0.1 0.5
Net interest income on pension schemes in surplus 0.3 1.1
Finance income 0.4 1.6
Interest expense 7.2 10.1
Interest on lease liabilities 0.6 0.7
Net interest expense on pension schemes in deficit 0.1 0.1
Amortisation of arrangement fees 1.0 0.6
Finance costs 8.9 11.5
Net finance costs 8.5 9.9
5 Adjusting items
As described in note 2, adjusted profit measures are an alternative
performance measure used by the Board to monitor the operating performance of
the Group.
2025 2024
£million Operating profit Tax Operating profit Tax
As reported (28.2) (13.9) (23.5) (20.0)
Restructuring costs
Restructuring costs (15.2) 3.2 0.1 -
(15.2) 3.2 0.1 -
Pension restructuring costs
Pension restructuring costs (1.9) 0.5 (1.3) 0.3
(1.9) 0.5 (1.3) 0.3
Asset impairments and measurement losses
Asset impairments (41.4) - (52.2) 3.2
Deferred tax asset derecognition - (2.7) - (16.0)
(41.4) (2.7) (52.2) (12.8)
Amortisation of intangible assets arising on business combinations
Amortisation of intangible assets arising on business combinations (2.6) 0.4 (2.7) 0.5
(2.6) 0.4 (2.7) 0.5
Acquisition and disposal related costs
Ferranti Power and Control acquisition and integration costs - - (0.2) -
Disposal costs (4.3) 1.1 (4.4) (0.4)
Property sale - - 0.7 -
Other - - (0.6) 0.1
(4.3) 1.1 (4.5) (0.3)
Total items excluded from adjusted measure (65.4) 2.5 (60.6) (12.3)
Adjusted measure 37.2 (16.4) 37.1 (7.7)
TT Electronics Plc
Results for the year ended 31 December 2025
5 Adjusting items continued
Restructuring and other costs £15.2 million (2024: £0.1 million credit)
Restructuring costs of £15.2 million include £7.0 million net cost relating
to the closure of the Plano, US manufacturing site (of which £4.8 million
relates to inventory write offs, £0.7 million relates to asset
decommissioning; £2.0 million of other costs and a credit of £0.5 million
recognised in respect of property, plant and equipment); £1.6 million
relating to costs associated with the changes in executive leadership; £6.1
million associated with the Cleveland manufacturing site (comprising £5.0
million relating to inventory write-offs and similar adjustments associated
with the improvement project and £1.1 million for related specialist resource
costs); and £0.5 million of other costs.
The net restructuring cost in the prior year of £0.1 million credit comprised
a credit of £0.4 million in respect of the closure of our Barbados facility
in 2021 offset by £0.3 million cost in respect of the closure of the
Hatfield, USA facility.
Pension restructuring costs £1.9 million (2024: £1.3 million)
Pension restructuring costs of £1.9 million (2024: £1.3 million) comprise
£1.9 million (2024: £1.1 million) cost incurred preparing the scheme for
buy-out. The prior period included a settlement cost of £0.2 million in
respect of the buy-out of one of the US schemes.
Asset impairments and measurement losses £41.4 million (2024: £52.2 million)
During the year an impairment of £37.2 million (2024: £36.7 million) was
recognised against goodwill for the North America segment reflecting recent
trading performance.
Due to a downturn in recent performance, impairment charges were recognised in
two sites in the North America segment. The impairment was £4.2 million in
total (2024: £15.5 million relating to a separate site in the North America
segment) comprising £1.0 million of right-of-use assets (2024: £5.4
million), £1.0 million of land and buildings, and £2.2 million of property,
plant and equipment (2024: £9.9 million). The impairment reduced the carrying
value of the right-of-use assets, land and buildings and property, plant and
equipment to £0.3 million.
The Group derecognised £2.7 million (2024: £16.0 million) of deferred tax
assets reflecting the recent performance and near-term outlook for the North
America region.
Amortisation of intangible assets arising on business combinations £2.6
million (2024: £2.7 million)
Amortisation of intangible assets arising on business combinations of £2.6
million (2024: £2.7 million) relate to amortisation of the fair value of
acquired order books, acquired customer relationships and other intangible
assets acquired on business combinations.
Acquisition and disposal related costs £4.3 million (2024: £4.5 million)
Acquisition and disposal related costs of £4.3 million (2024: £4.5 million)
comprise £4.2 million (2024: £nil) relating to professional fees associated
with the aborted acquisition by Cicor and £0.1 million in respect of other
M&A activity. The prior year included £4.4 million relating to the sale
of three business units to Cicor, £0.3 million relating to historic legal
claims, £0.3 million relating to costs incurred preparing land for sale,
£0.2 million relating to the acquisition of the Power and Control business of
Ferranti Technologies Ltd. based in Manchester, UK, and a gain of £0.7
million relating to the sale of property in Pembroke, UK.
6 Goodwill
£million
Cost
At 31 December 2023 140.8
Net exchange adjustment 1.3
At 31 December 2024 142.1
Net exchange adjustment (5.7)
At 31 December 2025 136.4
Impairment
At 31 December 2023 -
Impairment 36.7
At 31 December 2024 36.7
Impairment 37.2
Net exchange adjustment (2.1)
At 31 December 2025 71.8
Net book value
At 31 December 2025 64.6
TT Electronics Plc
Results for the year ended 31 December 2025
6 Goodwill continued
The impairment charge for the year is £37.2 million (2024: £36.7 million)
relating to the North America group of CGUs and within items excluded from
adjusted operating profit as described in note 5.
Goodwill arising from acquisitions represents the premium paid above the fair
value of net assets, including identified intangible assets, at the time of
acquisition. Future enhancements to acquired businesses - driven by strategic
direction, operational efficiencies, and investment - are expected to improve
profitability over the ownership period.
Goodwill is allocated to groups of CGUs and monitored at this level. Each
group of CGUs comprises multiple CGUs which are primarily individual
manufacturing sites.
Goodwill is attributed to the following groups of CGUs:
£million 2025 2024
Europe:
Europe 52.7 52.7
North America:
North America - 40.4
Asia:
Asia 11.9 12.3
Total 64.6 105.4
Impairment Testing
The Group tests goodwill impairment annually or more frequently if there are
indications that goodwill might be impaired.
Recoverable amounts for CGUs are calculated using a value-in-use approach. Key
assumptions include discount rates, growth projections, and operating cash
flow forecasts taken from the board approved 5-year strategic plan. Growth
rates beyond the forecast period align with long-term GDP projections, capped
at long-term inflation rates for the primary CGU market. These rates are
determined based on the Group's geographic footprint and market presence.
Discount rates are estimated using pre-tax rates that reflect market
conditions and CGU-specific risks. In determining the cost of equity, the
Capital Asset Pricing Model has been used. Accordingly, the cost of equity is
determined by adding a risk premium, based on an industry adjustment, to the
expected return of the equity market above the risk-free return. The relative
risk adjustment reflects the risk inherent in each group of CGUs relative to
all other sectors and geographies on average.
The cost of debt is determined using a risk-free rate based on the cost of
government bonds, and an interest rate premium equivalent to a corporate bond
with a similar credit rating to TT Electronics Plc.
Long-term growth assumptions reflect anticipated demand trends in line with
economic conditions. Price evolution and cost-control measures are expected to
drive sustained profitability improvements. Management has detailed plans in
place reflecting the latest budget and strategic growth plan. The pre-tax
discount rates and periods of management approved forecasts are shown below.
The discount rates used in the annual impairment test as at 30 September 2025
are shown below:
2025 2024
Pre-tax discount rate Long term growth rate Period of forecast (years) Pre-tax discount rate Long term growth rate Period of forecast (years)
Europe:
Europe 15.9% 1.4% 5.0 14.7% 1.4% 5.0
North America:
North America 15.8% 2.1% 5.0 15.5% 2.1% 5.0
Asia:
Asia 15.0% 3.5% 5.0 14.6% 3.5% 5.0
TT Electronics Plc
Results for the year ended 31 December 2025
6 Goodwill continued
The recoverable amounts associated with the goodwill balances which are based
on these performance projections and current forecast information do not
indicate that any goodwill balance, other than that for North America, is
impaired. Based on the impairment testing performed, an impairment charge of
£37.2 million was recorded in 2025 (2024: £36.7 million) in respect of the
North America group of CGUs related to the operational issues and weak
performance in the region, the timing of the recoverability in profitability
and certain macroeconomic assumptions including the discount rate. After
impairment, the recoverable amount of the goodwill held in the North America
group of CGUs was £nil.
The impairment charge is shown as an adjusting item (see note 5) in
conjunction with related asset impairments in the North America group of CGUs.
In the prior year an impairment charge of £36.7 million was recognised in
relation to the North America group of CGUs and was also recorded as an
adjusting item.
Sensitivity Analysis
Sensitivity analysis has been performed on the key assumptions; operating cash
flow projections, revenue growth rates and discount rate. Cash flows can be
impacted by changes to sales prices, direct costs and replacement capital
expenditure; individually they are not significant assumptions.
In respect of the Europe and Asia groups of CGUs, the directors have not
identified reasonably possible changes in significant assumptions that would
cause the recoverable amount to fall below the carrying value of recognised
goodwill.
7 Taxation
a) Analysis of the tax charge for the year
£million 2025 2024
Current tax
Current income tax charge 9.2 13.9
Adjustments in respect of current income tax of previous year (0.4) 1.0
Total current tax charge 8.8 14.9
Deferred tax
Relating to origination and reversal of temporary differences 2.4 (10.9)
Change in tax rate - 0.1
Derecognition of deferred tax assets in the North America segment 2.7 16.0
Adjustments in respect of deferred tax of previous years - (0.1)
Total deferred tax charge 5.1 5.1
Total tax charge in the income statement 13.9 20.0
The applicable tax rate for the period is based on the UK standard rate of corporation tax of 25.0% (2024: 25.0%). Overseas taxation is calculated at the rates prevailing in the respective jurisdictions. The Group's effective tax rate for the year was 37.9% (the adjusted tax rate was 57.1%, see section 'Reconciliation of KPIs and non-IFRS measures'). Included within the total tax charge above is a £2.5 million credit relating to items reported outside adjusted profit (2024: £12.3 million debit).
b) Reconciliation of the total tax charge for the year
£million 2025 2024
Loss before tax from continuing operations (36.7) (33.4)
Loss before tax multiplied by the standard rate of corporation tax in the UK (9.2) (8.3)
of 25%
Effects of:
Impact on deferred tax arising from changes in tax rates - 0.1
Overseas tax rate differences 4.4 3.0
Items not deductible for tax purposes or income not taxable 7.6 8.2
Adjustment to current tax in respect of prior periods (0.4) 0.9
Current year tax losses and other items not recognised 8.8 0.3
Impairment of deferred tax assets in the North America segment 2.7 16.0
Adjustments in respect of deferred tax of previous years - (0.2)
Total tax charge reported in the income statement 13.9 20.0
TT Electronics Plc
Results for the year ended 31 December 2025
7 Taxation continued
The overall aim of the Group's tax strategy is to support business operations
by ensuring a sustainable tax rate, mitigating tax risks in a timely and
cost-efficient way and complying with tax legislation in the jurisdictions in
which the Group operates. It is however inevitable that the Group will be
subject to routine tax audits or is in ongoing disputes with tax authorities
in the multiple jurisdictions it operates within. This is much more likely to
arise in situations involving more than one tax jurisdiction. Differences in
interpretation of legislation, of global standards (e.g. OECD guidance) and of
commercial transactions undertaken by the Group between different tax
authorities are one of the main causes of tax exposures and tax risks for the
Group.
In order to manage the risk to the Group an assessment is made of such tax
exposures and provisions are created using the best estimate of the most
likely amount to be incurred within a range of possible outcomes. The
resolution of the Group's tax exposures can take considerable time to conclude
and, in some circumstances, it can be difficult to predict the final outcome.
The current tax liability at 31 December 2025 includes tax provisions of
£12.2 million (including £1.2 million in respect of HMRC refunds from
retirement benefit schemes) (2024: £10.4 million). The Group believes the
range of reasonable possible outcomes in respect of these exposures is tax
liabilities of up to £16.0 million (2024: £13.9 million).
c) Deferred tax
The Group completed a five year forward looking strategic plan covering the
periods from 2026 to 2030 in which it was forecast that the Europe and Asia
regions would show increasing profitability. Therefore, a deferred tax asset
relating to these regions was recognised on the basis that it is considered
probable that net taxable profits will be recognised in the future.
The authorised pension surplus payments charge reduced from 35% to 25% from 6
April 2024. The deferred tax liability has been recognised at 25% (2024: 25%).
The amounts of deferred taxation assets/(liabilities) provided in the
financial statements are as follows:
£million As at 31 December 2024 Continuing operations Recognised in equity/ OCI Net exchange translation As at 31 December 2025
Intangible assets (8.2) 0.4 - 0.6 (7.2)
Property, plant and equipment (0.5) (1.6) - 0.3 (1.8)
Deferred development costs (0.1) 0.1 - - -
Retirement benefit obligations (1.4) 0.7 (1.1) - (1.8)
Inventories 1.2 - - (0.1) 1.1
Tax losses 1.4 - - (0.2) 1.2
Unremitted overseas earnings (0.4) 0.2 - - (0.2)
Share-based payments 0.3 0.1 0.3 - 0.7
Cash flow hedges 1.6 - (2.0) 0.2 (0.2)
Short-term temporary differences 15.7 (5.0) - (0.2) 10.5
Net deferred tax asset 9.6 (5.1) (2.8) 0.6 2.3
Deferred tax assets 13.1 8.0
Deferred tax liabilities (3.5) (5.7)
Net deferred tax asset 9.6 2.3
TT Electronics Plc
Results for the year ended 31 December 2025
7 Taxation continued
£million As at 31 December 2023 Continuing operations Recognised in equity/ OCI Net exchange translation As at 31 December 2024
Intangible assets (8.5) 0.4 - (0.1) (8.2)
Property, plant and equipment (1.4) 1.1 - (0.2) (0.5)
Deferred development costs (0.3) 0.2 - - (0.1)
Retirement benefit obligations (8.4) 3.8 3.1 0.1 (1.4)
Inventories 0.8 0.4 - - 1.2
Tax losses 14.1 (13.0) - 0.3 1.4
Unremitted overseas earnings (0.8) 0.5 - (0.1) (0.4)
Share-based payments 0.7 (0.2) (0.2) - 0.3
Cash flow hedges (0.6) - 2.4 (0.2) 1.6
Short-term temporary differences 14.0 1.7 - - 15.7
Net deferred tax asset 9.6 (5.1) 5.3 (0.2) 9.6
Deferred tax assets 16.6 13.1
Deferred tax liabilities (7.0) (3.5)
Net deferred tax asset 9.6 9.6
8 Dividends
2025 2025 2024 2024
pence per share
£million
pence per share
£million
Final dividend paid for prior year - - 4.65 8.2
Interim dividend declared for current year - - 2.25 4.0
The Directors do not recommend a dividend.
9 Earnings per share
Basic earnings/(loss) per share is calculated by dividing the profit/(loss)
attributable to owners of the Company by the weighted average number of shares
in issue during the year.
Pence 2025 2024
Loss per share (pence)
Basic (28.5) (30.2)
Diluted (28.5) (30.2)
As the Group made a statutory loss in 2025 and 2024, diluted statutory EPS for
2025 has been calculated using the basic weighted average number of shares
because using weighted average diluted shares would be anti-dilutive.
The numbers used in calculating adjusted, basic and diluted earnings per share
are shown below. Adjusted earnings per share is based on the adjusted profit
after interest and tax.
Adjusted earnings per share:
£million (unless otherwise stated) 2025 2024
Loss for the year attributable to owners of the Company (50.6) (53.4)
Restructuring costs 15.2 (0.1)
Pension restructuring costs 1.9 1.3
Asset impairments and measurement losses 41.4 52.2
Amortisation of intangible assets arising on business combinations 2.6 2.7
Acquisition and disposal related costs 4.3 4.5
Tax effect of adjusting items (see note 5) (2.5) 12.3
Adjusted earnings 12.3 19.5
Adjusted earnings per share (pence) 6.9 11.0
Adjusted diluted earnings per share (pence) 6.8 10.9
TT Electronics Plc
Results for the year ended 31 December 2025
9 Earnings per share continued
The weighted average number of shares in issue is as follows (new shares
issued in the year described in note 11):
£million 2025 2024
Basic 177.8 176.9
Adjustment for share awards 3.5 1.6
Diluted 181.3 178.5
10 Reconciliation of net cash flow to movement in net debt
Net cash of £38.6 million (2004: £69.1 million) comprises cash at bank and
in hand of £38.7 million (2024: £69.2 million) and overdrafts of £0.1
million (2024: £0.1 million).
£million Net cash Lease liabilities Borrowings Net debt
At 31 December 2023 76.5 (20.8) (181.9) (126.2)
Cash flow (4.1) - - (4.1)
Disposals of business (3.6) 2.6 - (1.0)
Repayment of borrowings - - 49.2 49.2
Proceeds from borrowings - - (15.1) (15.1)
Net movement in loan arrangement fees - - (0.2) (0.2)
Payment of lease liabilities - 4.2 - 4.2
New leases - (3.0) - (3.0)
Exchange differences 0.3 (0.3) (1.2) (1.2)
At 31 December 2024 69.1 (17.3) (149.2) (97.4)
Cash flow (28.6) - - (28.6)
Repayment of borrowings - - 59.1 59.1
Net movement in loan arrangement fees - - (1.1) (1.1)
Payment of lease liabilities - 3.8 - 3.8
New leases - (1.9) - (1.9)
Exchange differences (1.9) 1.0 2.3 1.4
At 31 December 2025 38.6 (14.4) (88.9) (64.7)
11 Share capital
£million 2025 2024
Issued and fully paid
178,648,793 (2024: 177,884,541) ordinary shares of 25p each 44.7 44.5
During the period the Company issued 764,252 ordinary shares as a result of
share options being exercised under the Sharesave scheme and Share Purchase
plans.
The performance conditions of the Restricted Share Plan awards issued in 2021,
2022 and 2023 and the Long-term Incentive Plan awards issued in 2021 were met
and shares were allocated to award holders from existing shares held by an
Employee Benefit Trust for £nil consideration.
The aggregate consideration received for all share issues during the year was
£0.6 million which was represented by a £0.2 million increase in share
capital and a £0.4 million increase in share premium.
12 Related party transactions
Transactions between the Company and its subsidiaries have been eliminated on
consolidation and are not disclosed in this note.
No related party transactions have taken place in 2025 or 2024 that have
affected the financial position or performance of the Group.
TT Electronics Plc
Results for the year ended 31 December 2025
Principal risk and uncertainties
The Group continues to be exposed to operational and financial risks and has
an established, structured approach to identifying, assessing, and managing
those risks. These risks relate to the following areas: IT systems and
information; resilience and recovery; general revenue reduction; geopolitical;
and research and development risks.
Reconciliation of KPIs and non IFRS measures
In accordance with the Guidelines on APMs issued by the European Securities
and Markets Authority (ESMA), additional information is provided on the APMs
used by the Group below.
To assist with the understanding of earnings trends, the Group has included
within its financial statements APMs adjusted operating profit and other
adjusted profit measures. The APMs used are not defined terms under IFRS and
therefore may not be comparable to similar measures used by other companies.
They are not intended to be a substitute for, or superior to, GAAP measures.
Management uses adjusted measures to assess the operating performance of the
Group, having adjusted for specific items as detailed in note 5. They form the
basis of internal management accounts and are used for decision making,
including capital allocation, with a subset also forming the basis of internal
incentive arrangements. By using adjusted measures in segmental reporting,
this enables readers of the financial statements to recognise how incentive
performance is targeted. Adjusted measures are also presented in this
announcement because the Directors believe they provide additional useful
information to shareholders on comparable trends over time. Finally, this
presentation allows for separate disclosure and specific narrative to be
included concerning the adjusting items; this helps to ensure performance in
any one year can be more clearly understood by the user of the financial
statements.
Income statement measures:
Alternative Performance Measure Closest equivalent statutory measure Note reference to reconciliation to statutory measure Definition and purpose
Adjusted operating Operating profit Adjusting items as disclosed in note 5 Adjusted operating profit has been defined as operating profit from continuing
operations excluding the impacts of significant restructuring programmes,
profit significant one-off items including property disposals, impairment charges
significant in nature and/or value, certain one-off pension costs, business
acquisition, integration, and divestment related activity and the amortisation
of intangible assets recognised on acquisition. Acquisition and disposal
related items include the writing off of the pre-acquisition profit element of
inventory written up on acquisition, other direct costs associated with
business combinations and adjustments to contingent consideration related to
acquired businesses. Restructuring includes cost of management changes,
significant costs associated with the cost of restructuring operations and
facilities, including the movement and closure of production facilities.
To provide a measure of the operating profits excluding the impacts of
significant items such as restructuring or acquisition related activity and
other items such as amortisation of intangibles which may not be present in
peer companies which have grown organically.
Adjusted operating Operating profit margin Adjusting items as disclosed in note 5 Adjusted operating profit as a percentage of revenue.
margin To provide a measure of the operating profits excluding the impacts of
significant items such as restructuring or acquisition related activity and
other items such as amortisation of intangibles which may not be present in
peer companies which have grown organically.
TT Electronics Plc
Results for the year ended 31 December 2025
Income statement measures: continued
Alternative Performance Measure Closest equivalent statutory measure Note reference to reconciliation to statutory measure Definition and purpose
Adjusted earnings Earnings per share See note 9 for the reconciliation and calculation of adjusted earnings per The profit for the year attributable to the owners of the Group adjusted to
share exclude the items not included within adjusted operating profit divided by the
per share weighted average number of shares in issue during the year.
To provide a measure of earnings per share excluding the impacts of
significant items such as restructuring or acquisition related activity and
other items such as amortisation of intangibles which may not be present in
peer companies which have grown organically.
Adjusted Diluted earnings See note 9 for the reconciliation and calculation of adjusted diluted earnings The profit for the year attributable to the owners of the Group adjusted to
per share exclude the items not included within adjusted operating profit divided by the
diluted per share weighted average number of shares in issue during the year, adjusted for the
effects of any potentially dilutive options.
earnings
To provide a measure of earnings per share excluding the impacts of
per share significant items such as restructuring or acquisition related activity and
other items such as amortisation of intangibles which may not be present in
peer companies which have grown organically.
Prior period revenue and adjusted operating profit at constant currency Revenue and operating profit See note APM 1 Revenue and adjusted operating profit for the prior year retranslated at the
current year's foreign exchange rates.
Organic Revenue See note APM 2 Revenue and adjusted operating profit from continuing operations in the
current year compared to the prior year, excluding the effects of currency
revenue and adjusted operating profit movements, acquisitions and disposals. This measures the underlying growth or
decline of the business.
To provide a comparable view of the revenue growth of the business from period
to period excluding acquisition and disposal impacts.
Adjusted effective tax charge Effective tax charge See note APM 3 The effective tax charge on the company's adjusted profit, which gives a
clearer view of the ongoing tax rate by excluding the effects of unusual or
non-recurring items.
Return on invested None See note APM 4 Adjusted operating profit for the year divided by average invested capital for
the year. Average invested capital excludes pensions, provisions, tax
capital balances, derivative financial assets and liabilities, cash and borrowings and
is calculated at average rates taking twelve monthly balances.
This measures how efficiently assets are utilised to generate returns with the
target of exceeding the cost to hold the assets.
TT Electronics Plc
Results for the year ended 31 December 2025
Statement of financial position measures:
Alternative Performance Measure Closest equivalent statutory measure Note reference to reconciliation to statutory measure Definition and purpose
Net debt Cash and cash equivalents less borrowings and lease liabilities Reconciliation of net cash flow to movement in net debt (note 10) Net debt comprises cash and cash equivalents and borrowings including lease
liabilities.
This is additional information provided which may be helpful to the user in
understanding the liquidity and financial structure of the business.
Leverage (bank covenant) Cash and cash equivalents less borrowings See note APM 12 Leverage is the net debt defined as per the banking covenants (net debt
(excluding lease liabilities) adjusted for certain terms as per the bank
covenants) divided by EBITDA excluding items removed from adjusted profit and
further adjusted for certain terms as per the bank covenants.
Provides additional information over the Group's financial covenants to assist
with assessing solvency and liquidity.
Net capital and development expenditure None See note APM 5 Purchase of property, plant and equipment net of government grants (excluding
property disposals), purchase of intangibles (excluding acquisition
(net capex) intangibles) and capitalised development.
A measure of the Group's investments in capex and development to support
longer term growth.
Dividend per share None Not applicable Amounts payable by dividend in terms of pence per share.
Provides the dividend return per share to shareholders.
TT Electronics Plc
Results for the year ended 31 December 2025
Statement of cash flows measures:
Alternative Performance Measure Closest equivalent statutory measure Note reference to reconciliation to statutory measure Definition and purpose
Adjusted operating Operating cash flow See note APM 6 Adjusted operating profit, excluding depreciation of property, plant and
equipment and amortisation of intangible assets less working capital and other
cash flow non-cash movements.
An additional measure to help understand the Group's operating cash
generation.
Adjusted operating Operating cash flow See note APM 7 Adjusted operating cash flow less net capital and development expenditure.
cash flow An additional measure to help understand the Group's operating cash generation
after the deduction of capex.
post capex
Working Cashflow - inventories payables, provisions and receivables See note APM 8 Working capital comprises three statutory cashflow figures:
(increase)/decrease in inventories, increase/(decrease) in payables and
capital provisions, and (increase)/decrease in receivables. This definition includes
the movement of any provisions over trade receivables.
cashflow
To provide users a measure of how effectively the group is managing its
working capital and the resultant impact on liquidity.
Free cash Net increase/ decrease in cash and cash equivalents See note APM 9 Free cash flow represents cash generated from trading after all costs
including restructuring, pension contributions, tax and interest payments.
flow Cashflows to settle LTIP schemes are excluded.
Free cash flow provides a measure of how successful the company is in creating
cash during the period which is then able to be used by the Group at its
discretion.
Cash None See note APM 10 Adjusted operating cash flow post capex (less any property disposals which
were part of restructuring programmes) divided by adjusted operating profit.
conversion
Cash conversion measures how effectively we convert profit into cash and
tracks the management of our working capital and capital expenditure.
R&D cash spend as a percentage of revenue None See note APM 11 R&D cash spend and R&D investment as a percentage of revenue excludes
revenue from contract manufacturing services as these activities do not give
rise to intellectual property.
To provide a measure of the company's expenditure on R&D relative to its
overall size which may be helpful in considering the Group's longer-term
investment in future product pipeline.
TT Electronics Plc
Results for the year ended 31 December 2025
APM 1 - Prior period revenue and adjusted operating profit at constant
currency:
2024
£million Europe North America Asia Total
2024 revenue 146.3 184.4 190.4 521.1
Foreign exchange impact - (4.7) (5.4) (10.1)
2024 revenue at 2025 exchange rates 146.3 179.7 185.0 511.0
2024
£million Europe North America Asia Total Operating Segments Central Total
2024 adjusted operating profit 18.9 (2.7) 28.5 44.7 (7.6) 37.1
Foreign exchange impact - - (1.1) (1.1) 0.2 (0.9)
2024 adjusted operating profit at 2025 exchange rates 18.9 (2.7) 27.4 43.6 (7.4) 36.2
APM 2 - Organic revenue and operating profit:
2025
£million Europe North America Asia Total
2025 revenue 144.4 173.1 163.9 481.4
2024 revenue 146.3 184.4 190.4 521.1
Removal of businesses disposed (11.8) - (4.4) (16.2)
Foreign exchange impact - (4.7) (5.4) (10.1)
2024 revenue on an organic basis 134.5 179.7 180.6 494.8
Organic revenue increase (%) 7% (4%) (9%) (3%)
£million Europe North America Asia Total Operating Segments Central Total
2025 operating profit 22.1 1.2 21.6 44.9 (7.7) 37.2
2024 operating profit 18.9 (2.7) 28.5 44.7 (7.6) 37.1
Removal of businesses disposed 0.5 - (0.3) 0.2 - 0.2
Foreign exchange impact - - (1.1) (1.1) 0.2 (0.9)
2024 operating profit on an organic basis 19.4 (2.7) 27.1 43.8 (7.4) 36.4
Organic operating profit increase (%) 14% (144%) (20%) 3% (4%) 2%
APM 3 - Effective tax charge:
£million 2025 2024
Adjusted operating profit 37.2 37.1
Net interest (8.5) (9.9)
Adjusted profit before tax 28.7 27.2
Adjusted tax (16.4) (7.7)
Adjusted effective tax rate 57.1% 28.3%
TT Electronics Plc
Results for the year ended 31 December 2025
APM 4 - Return on invested capital:
£million 2025 2024
Adjusted operating profit 37.2 37.1
Average invested capital 278.7 371.0
Return on invested capital 13.3% 10.0%
APM 5 - Net capital and development expenditure (net capex):
£million 2025 2024
Purchase of property, plant and equipment (8.1) (6.9)
Proceeds from sale of investment property, plant and equipment and capital 0.6 0.5
grants received
Capitalised development expenditure (1.1) (1.8)
Purchase of other intangibles - (0.5)
Net capital and development expenditure (8.6) (8.7)
APM 6 - Adjusted operating cash flow:
£million 2025 2024
Adjusted operating profit 37.2 37.1
Adjustments for:
Depreciation 10.9 12.2
Amortisation of intangible assets 1.2 1.6
Impairment of property, plant and equipment and intangible assets 1.0 -
Share based payment expense 1.9 2.2
Scheme funded pension administration costs 0.8 1.1
Other items (0.5) 0.2
Decrease in inventories 14.8 12.8
Increase in receivables (0.9) (2.2)
Decrease in payables and provisions (2.0) (12.9)
Adjusted operating cash flow 64.4 52.1
Reimbursement from pension schemes 1.1 9.4
Restructuring and acquisition related costs (7.9) (0.6)
Net cash generated from operations 57.6 60.9
Net income taxes paid (7.6) (9.7)
Net cash flow from operating activities 50.0 51.2
APM 7 - Adjusted operating cash flow post capex:
£million 2025 2024
Adjusted operating cash flow 64.4 52.1
Purchase of property, plant and equipment (8.1) (6.9)
Proceeds from sale of property, plant and equipment and government grants 0.6 0.5
received
Capitalised development expenditure (1.1) (1.8)
Purchase of other intangibles - (0.5)
Adjusted operating cash flow post capex 55.8 43.4
TT Electronics Plc
Results for the year ended 31 December 2025
APM 8 - Working capital cashflow:
£million 2025 2024
Decrease in inventories 14.8 14.2
Increase in receivables (0.9) (3.6)
Decrease in payables and provisions (2.0) (12.9)
Scheme funded pension administration costs 0.8 1.1
Working capital cashflow 12.7 (1.2)
APM 9 - Free cash flow:
£million 2025 2024
Net cash flow from operating activities 50.0 51.2
Net cash flow from investing activities (8.6) 3.5
Add back: Proceeds from disposal of business - (17.5)
Add back: Cash with disposed businesses - 5.3
Payment of lease liabilities (3.8) (4.2)
Interest paid (7.7) (10.6)
Free cash flow 29.9 27.7
APM 10 - Cash conversion:
£million 2025 2024
Adjusted operating profit 37.2 37.1
Adjusted operating cash flow post capex 55.8 43.4
Cash conversion 150% 117%
APM 11 - R&D cash spend as a percentage of revenue:
£million 2025 2024
Revenue (excluding contract manufacturing) 267.7 269.1
R&D cash spend 10.3 11.3
R&D cash spend as a percentage of revenue 3.8% 4.2%
APM 12 - Leverage:
£million 2025 2024
Adjusted operating profit 37.2 37.1
Depreciation 10.9 12.2
Amortisation 1.2 1.6
EBITDA 49.3 50.9
Adjustment to align with covenants (4.4) (5.3)
EBITDA (covenants) 44.9 45.6
Net debt as per note 10 64.7 97.4
Less: leases (14.4) (17.3)
Net debt excluding leases 50.3 80.1
Adjustment to align with covenants 1.3 2.0
Net debt (covenants) 51.6 82.1
Leverage 1.1 1.8
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