Change to Reporting Segmentation

RNS Number : 7467M

TT Electronics PLC

01 August 2017

 

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:  [phone]
Mark Hoad, Chief Financial Officer Emma Darke, Head of Investor Relations and Communications
MHP	Tel:  [phone]
Tim Rowntree / Katie Hunt / Ivana Petkova / Hannah Winter
Notes:  The Group's interim results will be announced on 11 August 2017

 

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