TT Electronics PLC Change to Reporting Segmentation (7467M)

TIDMTTG

RNS Number : 7467M

TT Electronics PLC

01 August 2017

1 August 2017

TT Electronics plc

Change to Reporting Segmentation

TT Electronics ("TT" or the "Group"), a global provider of engineered electronics for performance critical applications, is today announcing changes to the names and constituent business of its external reporting segments to better reflect how the businesses are managed and organised to address their markets.

Following the announcement on 19 July 2017 that TT has entered in to a conditional agreement for the sale of its Transportation Sensing and Control division, the results of this division will be transferred to discontinued operations.

TT has re-organised its continuing operations to move the Passive Components business from the Advanced Components division into the Industrial Sensing and Control division, with the division being renamed Sensors and Specialist Components. The main driver for bringing these two businesses together is to allow a joined-up approach in their routes to market, facilitating key account management with our distributors and to support future growth.

The remainder of the Advanced Components division will be renamed Power Electronics, to reflect the change in business mix following the integration of Aero Stanrew into the Group. No change has been made to the Integrated Manufacturing Services division, apart from it being renamed Global Manufacturing Solutions.

Previously all costs managed centrally were allocated to the divisional segments. Following a review it is now considered more appropriate for head office costs which are not related to the operating activities of the trading units to be held centrally.

As a result of this change, the continuing operations will be reported under the following divisional segments:

   --     Sensors and Specialist Components 
   --     Power Electronics 
   --     Global Manufacturing Solutions 

The make-up of the new segments and the associated revenues are shown below

 
     Old Segment           Business Unit            New Segment 
---------------------  ---------------------  ----------------------- 
 
   Industrial Sensing     Industrial Sensing 
       & Control              & Control 
    FY 2016 GBP64.4m       FY 2016 GBP64.4m 
---------------------  ---------------------  ----------------------- 
                                               Sensors and Specialist 
                          Passive Components         Components 
                           FY 2016 GBP65.1m       FY 2016 GBP129.5m 
---------------------  ---------------------  ----------------------- 
 
 Advanced Components      Power Electronics       Power Electronics 
   FY 2016 GBP121.3m       FY 2016 GBP56.2m        FY 2016 GBP56.2m 
---------------------  ---------------------  ----------------------- 
 
          IMS                    IMS             Global Manufacturing 
   FY 2016 GBP147.0m      FY 2016 GBP147.0m           Solutions 
                                                  FY 2016 GBP147.0m 
---------------------  ---------------------  ----------------------- 
 

For the purpose of comparison, the Group is today publishing its segmental results for the financial year 2016 and the first half of 2016 on the new basis, as shown below:

Income statement information

 
                                                                   2016 
                      ================  =============  ===========================  ==========  ============ 
                           Sensors          Power           Global         Total     Corporate      Total 
                        and Specialist    Electronics    Manufacturing    Segments                Continuing 
 GBPmillion               Components                       Solutions                              Operations 
====================  ================  =============  ===============  ==========  ==========  ============ 
 Sales to external 
  customers                      129.5           56.2            147.0       332.7           -         332.7 
 Segment underlying 
  operating profit                15.6            5.0              6.3        26.9       (6.3)          20.6 
 
 Margin                          12.0%           8.9%             4.3%        8.1%           -          6.2% 
 
 
                                                                 H1 2016 
                      ================  =============  ===========================  ==========  ============ 
                           Sensors          Power           Global         Total     Corporate      Total 
                        and Specialist    Electronics    Manufacturing    Segments                Continuing 
 GBPmillion               Components                       Solutions                              Operations 
====================  ================  =============  ===============  ==========  ==========  ============ 
 Sales to external 
  customers                       60.6           26.3             72.3       159.2           -         159.2 
 Segment underlying 
  operating profit                 7.1            1.9              2.4        11.4       (3.1)           8.3 
 
 Margin                          11.7%           7.2%             3.3%        7.2%           -          5.2% 
 

Segment assets and liabilities

 
                                 Assets   Liabilities 
                                =======  ============ 
 GBPmillion                       2016       2016 
==============================  =======  ============ 
 Sensors and Specialist 
  Components                      127.3          21.7 
 Power Electronics                 71.2          11.2 
 Global Manufacturing 
  Solutions                        82.8          25.6 
 Segment assets and 
  liabilities                     281.3          58.5 
 Discontinued operations          115.4          39.6 
 Pension liability                    -           5.7 
 Unallocated assets 
  and liabilities                  72.7         132.2 
==============================  =======  ============ 
 Total assets and liabilities     469.4         236.0 
==============================  =======  ============ 
 
 
                                  Capital       Depreciation 
                                 expenditure    & amortisation 
                               =============  ================ 
 GBPmillion                         2016                  2016 
=============================  =============  ================ 
 Sensors and Specialist 
  Components                             8.1               6.3 
 Power Electronics                       2.3               2.4 
 Global Manufacturing 
  Solutions                              5.2               3.5 
 Total continuing operations            15.6              12.2 
=============================  =============  ================ 
 
 
 For further information 
  please contact: 
 TT Electronics plc             Tel: [phone] 
 Mark Hoad, Chief Financial Officer 
  Emma Darke, Head of Investor Relations and Communications 
 
 MHP                            Tel: [phone] 
 Tim Rowntree / Katie Hunt / Ivana Petkova / Hannah 
  Winter 
 
 Notes: 
  The Group's interim results will be announced 
  on 11 August 2017 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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August 01, 2017 07:00 ET (11:00 GMT)