Last checked at 1 Aug 2017 12:00
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 & Control FY 2016 £64.4m
|
Industrial Sensing & Control FY 2016 £64.4m |
Sensors and Specialist Components FY 2016 £129.5m |
Advanced Components FY 2016 £121.3m |
Passive Components FY 2016 £65.1m
| |
Power Electronics FY 2016 £56.2m |
Power Electronics FY 2016 £56.2m
| |
IMS FY 2016 £147.0m
|
IMS FY 2016 £147.0m |
Global Manufacturing Solutions FY 2016 £147.0m |
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 | ||||||
£million | Sensors and Specialist Components | Power Electronics | Global Manufacturing Solutions | Total Segments | Corporate | Total Continuing 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 | ||||||
£million | Sensors and Specialist Components | Power Electronics | Global Manufacturing Solutions | Total Segments | Corporate | Total Continuing 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 | |
£million | 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 expenditure | Depreciation & amortisation | |
£million | 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: +44 (0)1932 825 300 |
Mark Hoad, Chief Financial Officer Emma Darke, Head of Investor Relations and Communications | |
MHP | Tel: +44 (0)20 3128 8100 |
Tim Rowntree / Katie Hunt / Ivana Petkova / Hannah Winter | |
Notes: The Group's interim results will be announced on 11 August 2017 | |