TT Electronics PLC Trading Update (1172H)
November 13 2018 - 2:00AM
UK Regulatory
TIDMTTG
RNS Number : 1172H
TT Electronics PLC
13 November 2018
13 November 2018
TT Electronics plc
Trading Update
TT Electronics ("TT" or the "Group"), a global provider of
engineered electronics for performance critical applications, today
publishes this trading update to the end of October 2018.
Trading for the Group has continued to be positive. For the year
to date, group revenue is up 5% on an organic(1) basis compared to
the prior year, with all three divisions growing in the last four
months. The good revenue, profit and order momentum across all
three divisions is as expected.
We have continued to see positive order intake across all three
divisions, and, adjusting for the impact of acquisitions, the order
book continues to be strongly ahead of the prior year, supporting
our confidence in the improved growth continuing for the remainder
of the year and into the early part of next year.
The integration of Stadium and Precision is progressing well and
the acquisitions are performing in line with our expectations.
We are investing in our strategic priorities focusing on
business development and product R&D. More specifically in
response to opportunities in connected devices highlighted from the
integration of Stadium, in October we opened an Advanced Technology
Centre in Shenzhen, adding scale and capability in Asia to
complement existing capabilities in Kista, Sweden.
On 12 November, we signed an agreement to establish a joint
venture with our long-term supply partner, Uniroyal Electronics
Industry ("Uniroyal") for sensing and power management devices.
Uniroyal is the world's second largest manufacturer in this growing
technology. The partnership will combine TT's design engineering
and worldwide distribution channels with Uniroyal's penetration in
the Asian market and higher volume manufacturing capabilities to
target the automotive, industrial automation, and other higher
volume market segments. Revenues from the joint venture are
expected to commence in the second half of 2019. We expect to
invest $4.5 million in 2019, and to significantly exceed our 12%
pre-tax return on investment capital hurdle in 2020.
Commenting Richard Tyson, Chief Executive Officer said:
"We continue to see a very good performance from across the
business with ongoing order momentum and revenue growth. We are
investing in areas that will support the future growth of the
business including an exciting joint venture opportunity with
Uniroyal. The integration of Stadium and Precision is progressing
well. Overall the enlarged business is performing as expected.
Following a first half with good revenue growth and significant
margin improvement, momentum has strengthened into the second half
of the year. We are on track with our plans for the year as a whole
and confident of meeting the enhanced expectations we set out at
the time of our interim results. TT is in good shape as we head
into 2019."
Investor event
On Thursday 15 November, we will be holding an investor event
where members of our senior leadership team will be presenting
their views on the opportunities available for the development of
the business in our target markets and illustrating our
differentiated positions with our customers. The presentation
materials will be available on the IR section of our website
following the event.
For further information please
contact:
TT Electronics plc Tel: +44 (0)1932 825 300
Richard Tyson, Chief Executive Officer
Mark Hoad, Chief Financial Officer
Emma Darke, Head of Investor Relations and Communications
MHP Tel: +44 (0)20 3128 8100
Tim Rowntree / Katie Hunt
Notes
(1)Excluding the impact of exchange rates, acquisitions and
disposals
Uniroyal Electronics Industry Co. Ltd was founded in 1978 in
Hsin-Chu, Taiwan. Further information can be found at
www.uniohm.com
About TT Electronics
TT Electronics is a global provider of engineered electronics
for performance critical applications. TT Electronics is a global
provider of engineered electronics for performance critical
applications.
The company operates in industries where there are structural
growth drivers, working with market-leading customers in
industrial, medical, aerospace and defence, and transportation
sectors. Products designed and manufactured include sensors, power
management devices and connectivity solutions. TT has design and
manufacturing facilities in the UK, US, Sweden and Asia.
The company has three divisions. The Sensors and Specialist
Components division works with customers to develop standard and
customised solutions including sensors and power management
devices. Our solutions improve the precision, speed and reliability
of critical aspects of our customers' applications. The Power and
Connectivity division designs and manufactures power application
products and connectivity devices which enable the capture and
wireless transfer of data. We collaborate with our customers to
develop innovative solutions to optimise their electronic systems.
The Global Manufacturing Solutions division provides manufacturing
services and engineering solutions for our product divisions and to
customers that often require a lower volume and higher mix of
different products. We produce printed circuit board assemblies
through to full electronic products to our customers' designs
coupled with engineering testing and integration services.
Cautionary statement
This trading update contains forward-looking statements. These
have been made by the directors in good faith based on the
information available to them up to the time of their approval of
this update. The directors can give no assurance that these
expectations will prove to have been correct. Due to the inherent
uncertainties, including both economic and business risk factors
underlying such forward looking information, actual results may
differ materially from those expressed or implied by these
forward-looking statements. The directors undertake no obligation
to update any forward-looking statements whether as a result of new
information, future events or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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