AGM & Interim Management Stat

RNS Number : 7374L

TT electronics PLC

12 May 2010

 



12 May 2010

TTG

TT electronics plc

AGM and Interim Management Statement

TT electronics plc ("TT" or the "Group"), the global electronics group supplying leading manufacturers in the defence, aerospace, medical, automotive and industrial electronics markets, will hold its Annual General Meeting today, where the following comments will be made on current trading, strategy, financial position and outlook for the current financial year.  This Interim Management Statement, as required by the UK Listing Authority's Disclosure and Transparency Rules, covers the period from 1 January 2010 to the date of this announcement.

Current Trading

As previously reported in the 2009 full year results announcement in March, trading improved in the fourth quarter of 2009 in most of our markets. This improvement has continued during the first four months of the current year.

Sales in the first four months were over 25% ahead of last year at constant currency rates, with all divisions showing an increase in volumes compared with a relatively weak equivalent period in 2009. Combined with the cost base reductions achieved in 2009, this has led to an improvement in operating performance.

Strategy

The Group continues to implement the strategy announced last year, with the emphasis on customer focus, product innovation, operational improvements and people development. In the Components division the new regional sales organisation and key account management programme is continuing to yield benefits and demonstrate added potential for the business. A global management structure has been implemented in the Sensors division which will enable the business to track and better serve its major customers across key regions and identify and pursue additional growth opportunities. Our recently established Secure Power office in Brazil is making good progress in this important growth market.

The closure of the UK defined benefit pension scheme to future accrual was completed as expected in April 2010, with all employees transferred into the Group defined contribution personal pension plan.

Financial Position

As anticipated, the improved trading levels have absorbed additional working capital in the first quarter following the significant reduction achieved in 2009. Net debt at the end of April was £64.5 million compared with £56.9 million at the start of the year.

The Group has agreed a new committed facility of £70 million over three years to May 2013 with a club of four banks comprising HSBC, Royal Bank of Scotland, Santander and Fifth Third Bank of the USA. The new facility replaces an existing term loan which had been due for repayment in April 2011. It broadens the Group's banking arrangements and establishes a basis for building a partnership with each of the four banks across the Group's global operations. The new facility, which together with other bilateral term loans and working capital lines total in excess of £110 million, gives the Group adequate facilities for the foreseeable future and provides a comfortable level of headroom over net debt.

Board

As announced previously, John Newman will retire as non-executive Chairman and from the Board following today's AGM. He will be succeeded as non-executive Chairman by Sean Watson. The Board thanks John for his significant contribution over many years and wishes him well for the future.

Outlook

The business has made a good start to the year as we have seen consistently higher volumes coupled with improved visibility for the first half. Although there remains a degree of uncertainty over second half trading due to the global economic conditions, the Board now expects that the overall performance for the full year will be ahead of its previous expectations.

Enquiries:

TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director	Tel:  [phone]
Biddicks Zoë Biddick / Sophie Lane	Tel:  [phone]

 

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