Trading Update

RNS Number : 8935F

TT Electronics PLC

10 November 2022

 

 

10 November 2022

TT Electronics plc

In Line Trading Update

TT Electronics plc ("TT", "the Group"), a global provider of engineered electronics for performance critical applications, publishes the following trading update on the Group's performance in the four-month period ended 29 October 2022 ("the Period").

Strong demand continues

The continued strength in our focus end markets, together with our customer positioning, is reflected in the Group's year-to-date organic¹ constant currency revenue growth of 18 per cent. Revenue growth has accelerated in the four months to October as expected, with strong volume growth augmented by pricing and material pass through costs.

Our order intake continues to run ahead of our accelerating revenue growth, with book to bill of 106% in the four months to October. Overall, for the year to date, our book to bill is 127%. The order book remains well above historic levels across the business and provides excellent visibility for 2023.

Execution

Global supply chain constraints persist alongside continued inflation pressure from wages, material costs and energy.  Prices are under continuous review to recover these costs; the ongoing nature of inflation dynamics will mean some lag in recovery.

Balance sheet

The Group remains on track to deliver improved cash generation and a year-end leverage position within our target 1-2x net debt to adjusted EBITDA range.

Outlook

Despite the challenging backdrop, given the strong performance of the Group, we expect to report adjusted profit before tax in line with the Board's expectations for the full year, with benefits of foreign exchange offsetting the headwinds from increased interest costs.

Richard Tyson, TT Chief Executive Officer commented:

"Momentum across the Group continues to be strong reflecting our successful positioning in structural growth markets. The team is executing well against the ongoing challenging backdrop, and we continue to expect to deliver margin improvement in the second half.

While mindful of the wider macroeconomic backdrop, the continued growth in order book extends our visibility of revenues for 2023."

For further information please contact:
TT Electronics plc	Tel: [phone]
Richard Tyson, Chief Executive Officer Mark Hoad, Chief Financial Officer Kate Moy, Head of Investor Relations and Communications
MHP	Tel: [phone]
Tim Rowntree / Ollie Hoare

Notes:

1.  Organic growth is stated at constant currency and is calculated by comparing current year actual results to prior year results retranslated at current year actual exchange rates.  Organic revenue excludes the impact of acquisitions and disposals.

2.  Analyst consensus expectations for 2022 adjusted profit before tax are in a range of £35.4m to £39.8m.

3.  TT will announce its full year results on 8 March 2023.

About TT Electronics

TT Electronics is a global provider of engineered electronics for performance critical applications.

The company operates in industries where there are structural growth drivers, working with market-leading customers primarily in the industrial, medical, aerospace and defence sectors. Products designed and manufactured include sensors, power management devices and connectivity solutions. TT has design and manufacturing facilities in the UK, US, Sweden and Asia.

The company has three divisions. The Power and Connectivity division designs and manufactures power application products and connectivity devices which enable the capture and wireless transfer of data. We collaborate with our customers to develop innovative solutions to optimise their electronic systems. The Global Manufacturing Solutions division provides manufacturing services and engineering solutions for our product divisions and to customers that often require a lower volume and higher mix of different products. We manufacture complex integrated product assemblies for our customers and provide engineering services including designing testing solutions and value-engineering. The Sensors and Specialist Components division works with customers to develop standard and customised solutions including sensors and power management devices. Our solutions improve the precision, speed and reliability of critical aspects of our customers' applications.

Cautionary statement

This 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 inf ormation, future events or otherwise.

 

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