10
May 2024
TT Electronics
plc
AGM Trading
Update
Full year outlook unchanged,
on track for 10% operating margin target
TT Electronics plc ("TT", "the
Group"), a global engineer and manufacturer of electronic solutions
for critical applications, publishes the following trading update
on the Group's performance for the four months to 30 April 2024
(the "period"), ahead of the AGM taking place later
today.
Trading update
Group revenue in the period was
2 per cent lower than the previous year on
an organic1 basis, but 1 per cent higher excluding the
impact of pass-through revenues which continue to
reduce.
Book to bill in the period was
positive at 102 per cent with good performance in the Europe and
Asian regions however, de-stocking continues and is now expected to
normalise during H2. This is impacting our shorter cycle component
products, primarily in North America. We have taken cost action to
offset the lower demand and as a consequence expect the H2 profit
weighting to be more pronounced than normal.
We also continue to unlock
significant value through our self-help programme, Project Dynamo,
as outlined at our recent Capital Markets Event.
The Board's expectations for the
year remain unchanged and the business remains on track to deliver
10 per cent adjusted operating margin in 2024.
Commenting Peter France, Chief
Executive Officer said:
"Whilst there is continuing global
macro-economic uncertainty, the outlook for our markets remains
good. The significant orderbook coverage and our prompt actions
across the business underpin the Board's confidence in an unchanged
outlook for the year and the delivery of the 10 per cent operating
margin target.
Project Dynamo is progressing at
pace and the new organisational structure is already helping to
optimise resources, drive operational standards and increase
customer intimacy as we remain laser focused on efficiency, growth
and innovation."
For
further information please contact:
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TT
Electronics plc
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Tel: +44 (0)1932 827 779
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Peter France, Chief Executive
Officer
Mark Hoad, Chief Financial
Officer
Kate Moy, Head of Investor Relations
and Communications
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MHP
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Tel: +44 (0)20 3128 8100
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Tim Rowntree / Ollie
Hoare
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Notes:
1. Organic growth is calculated by excluding the impact of
exchange rates, acquisitions and disposals.
2. TT will announce its half year results on 8 August
2024.
3. Latest company compiled view of market expectations shows a
consensus adjusted profit before tax of £46.2 million within a
range of £45.0 million to £47.3 million for the year ended December
2024.
About TT Electronics
TT Electronics is a global provider
of engineered electronics for performance critical
applications.
The company operates in industries
where there are structural growth drivers, working with
market-leading customers primarily in the industrial, medical,
aerospace and defence sectors. Products designed and manufactured
include sensors, power management devices and connectivity
solutions. TT has design and manufacturing facilities in the UK,
North America and Asia.
Cautionary statement
This update contains forward-looking
statements. These have been made by the directors in good faith
based on the information available to them up to the time of their
approval of this update. The directors can give no assurance that
these expectations will prove to have been correct. Due to the
inherent uncertainties, including both economic and business risk
factors underlying such forward-looking information, actual results
may differ materially from those expressed or implied by these
forward-looking statements. The directors undertake no obligation
to update any forward-looking statements whether as a result of new
information, future events or
otherwise.