Pre-close Trading Update

RNS Number : 2086V

TT electronics PLC

10 January 2013

 



10 January 2013

TT electronics plc

Pre-close Trading Update

2012 - Margin progression and strengthened balance sheet

TT electronics plc ("TT" or "the Group"), a global provider of performance critical technology solutions to leading manufacturers, issues the following pre-close trading statement and will announce final results for the year ended 31 December 2012 on 14 March 2013.

Trading in the last two months of 2012 was in line with the Board's expectations and, as anticipated, operating margins for the full year were ahead of 2011.

The disposal of Ottomotores announced on 21 November 2012 has now been completed and the sale proceeds of $46.5m (£29.0m) received in cash, subject to an adjustment based on the final completion balance sheet. This concluded the sale of the Group's Secure Power businesses to leave it focused on its electronics divisions.

On 24 December 2012, the Group agreed to purchase the 49% minority interest in its Sensor business, Padmini TT electronics Private Limited ("TT Padmini"). TT Padmini was established in 2007 as a commercial joint venture to provide access to the Indian automotive and industrial markets.  The acquisition of the minority shareholding follows the considerable progress made by the company in developing its presence in the sensor market and reflects the opportunities to grow the Group's business in India.  The transaction is expected to be completed during January 2013, with total consideration payable of up to £8.7m depending on the attainment of certain targets.  The original joint venture agreement contained a put and call option structure and consequently the results of the business are already fully consolidated in the Group's financial statements.

The integration of the ACW Technology business acquired on 12 December 2012 into the Group's IMS division has commenced.  The acquisition consolidates our position in the UK and Chinese IMS markets and provides an opportunity to develop further business with world class customers.

Strong cash generation, together with the proceeds from the disposal of the Secure Power businesses net of the ACW Technology acquisition, has resulted in a net cash position of approximately £45m at 31 December 2012.

The Group remains focused on delivering self-help measures and investing to grow the business and drive margin progression towards our stated targets.

Enquiries:

TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director	Tel:  [phone]
Hudson Sandler Andrew Hayes/Andrew Leach/Wendy Baker	Tel:  [phone]

Note:

This statement contains certain forward-looking statements. Such statements are made by the Directors in good faith based on the information available to them at the time of the announcement and they should be treated with caution due to the inherent uncertainties underlying any such forward-looking information.

 

END

 

 

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