TT Electronics PLC AGM Trading Update (4516Y)

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RNS Number : 4516Y

TT Electronics PLC

13 May 2021

13 May 2021

TT Electronics plc

AGM Trading Update

STRONG YEAR TO DATE TRADING

TT Electronics (the "Group"), a global provider of engineered electronics for performance critical applications, publishes this trading update for the four months to the end of April 2021, ahead of the AGM taking place later today.

Trading in the first four months of the year has continued to strengthen with Group revenue 7% above last year on an organic(1) basis, building on the strong start made in the first two months of the year. As the market recovers, we have seen strong growth across healthcare, automation and electrification markets as demand for products that enable a cleaner, smarter and healthier environment continues.

We continue to book orders ahead of revenue, enhancing order book visibility compared to previous years, with strength across all three divisions, although we are mindful of the potential impact on output of supply chain shortages and logistics challenges. As a result, the Board now anticipates adjusted operating profit for the full year to be towards the upper end of market expectations(2) .

The Torotel business, acquired in November 2020, is performing well and we have won a new multi-year contract with an existing TT aerospace and defence customer. With the cross-selling win and the pipeline of new business opportunities, Torotel is now expected to perform ahead of plan.

The Group's ongoing self-help programme continues to progress well, supporting our plans to deliver double digit operating margins, with preparations underway for the planned site closures to improve efficiency further.

Commenting Richard Tyson, Chief Executive Officer said:

"We have seen continuing good growth across our key markets and in our three divisions in the period and now anticipate our performance for the year to be towards the upper end of market expectations, reflecting our exposure to structural growth dynamics. Our strong growth, the contribution from acquisitions made in 2020, and our self-help actions give us confidence in 2021 and beyond."

 
 For further information please 
  contact: 
 TT Electronics plc                                           Tel: [phone] 
 Richard Tyson, Chief Executive Officer 
  Mark Hoad, Chief Financial Officer 
  Emma Darke, Head of Investor Relations and Communications 
 
 MHP                                                          Tel: [phone] 
 Tim Rowntree / Rachel Mann 
 
 
 

Notes

(1) Excluding the impact of exchange rates, acquisitions and disposals

(2) Latest company compiled view of market expectations shows a consensus adjusted operating profit of GBP34.5m with a range of GBP33.6m to GBP35.4m

About TT Electronics

TT Electronics is a global provider of engineered electronics for performance critical applications.

TT solves electronics challenges for a sustainable world. TT benefits from enduring megatrends in structurally high-growth markets including healthcare, aerospace, defence, electrification and automation. 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, Sweden and Asia.

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 inf ormation, future events or otherwise.

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May 13, 2021 02:00 ET (06:00 GMT)