Interim Management Statement

RNS Number : 3391G

TT electronics PLC

11 May 2011

 



TTG

TT electronics plc

Interim Management Statement

TT electronics plc, a world leader in sensor and electronic component technology, issues this Interim Management Statement in accordance with the UK Listing Authority's Disclosure and Transparency Rules for the period from 1 January 2011 and is based on the trading results for the four months ended 30 April 2011.

As noted in the full year results announcement in March 2011, trading conditions improved significantly during the course of 2010. This improvement has continued during the first four months of 2011 with sales approximately 16% ahead of the comparable period for 2010 at constant currency rates.  Progress towards our margin targets has been ahead of our expectations.

The Components division is experiencing revenue growth resulting from our focus on selected markets where we can add value.  The division is delivering improved margins due to better pricing and increased volumes, whilst continuing to invest.

The Sensors division has had a strong start to the year with sales in the first four months significantly ahead of the comparable period in 2010, and progress in improving margins.  Current indications are that demand from our key automotive customers will remain strong.

The Integrated Manufacturing Services division has delivered good sales growth in the first four months of the year, benefiting from orders secured in 2010 in target segments and robust demand in our customers' end markets.  Higher volumes and an increasing proportion of business derived from customers who value our flexibility, support and global footprint are delivering margin improvement.

The Secure Power division has had a slow start, with trading slightly below last year.  However, fundamental end-market dynamics are positive and we expect to see an improving performance in the second half of the year.

As anticipated, the increase in trading levels has required additional working capital following the significant reduction achieved in the last two years. Capital expenditure has increased in line with our plans. Net debt at the end of April was around £24 million compared with £10 million at the start of the year.  

Whilst there is still some uncertainty regarding the full effect of the natural disasters in Japan as the disruption in component supply feeds through global supply chains, indications are that the potential impact on the Group's trading is expected to be modest.

Overall the Group has traded strongly with higher volumes and margins in 2011 and the order book provides visibility through to the third quarter. Based on this, the Board now expects that the Group's performance for the full year will be significantly ahead of its previous expectations.

Enquiries:

TT electronics plc                                                                  Tel:  [phone]

Geraint Anderson, Group Chief Executive

Shatish Dasani, Group Finance Director

Biddicks                                                                                 Tel:  [phone]

Zoë Biddick

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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