Last checked at 17 Nov 2016 07:00
17 November 2016
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 for the period to the end of October 2016.
Overall, the Group continues to perform well. As expected, the Group's revenues have grown on an organic1 basis in the four months to the end of October 2016.
The Group's order book is marginally ahead of the prior year, before the additional contribution from Aero Stanrew where the order intake continues to be encouraging. Notably, we have secured the first contract win as a result of the integration of Aero Stanrew and TT.
Trading results have continued to be favourably impacted by exchange rate movements to date, increasing revenue and underlying operating profit in the first 10 months of the year by approximately £30m and £2.5m respectively.
The cash generation of the business remains on track to see an improved performance in the second half of the year. In addition, the former head office site in Weybridge was sold in September generating net cash proceeds of circa £6m.
Summary and Outlook
Commenting on the trading statement, Richard Tyson, Chief Executive Officer said:
"We are pleased with our year to date performance, having grown organic revenues in the four months since the half year against a challenging backdrop in some of our markets. Our strategy to position ourselves in structural growth markets where there is increasing electronic content continues to gain traction. Our strong business performance is in line with our plans and is being enhanced by benefits from favourable exchange rates, and we therefore expect to be ahead of market expectations for the year as a whole."
On Tuesday 22 November, we will be holding an investor event focused on our power electronic capabilities in Aerospace and Defence, a component of TT fuelling growth for the future. 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 / Jamie Ricketts | |
1 Notes:
1 Excluding the impact of exchange rates, acquisitions and disposals. | |
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.