TT Electronics plc (LON:TTG), a global provider of engineered electronics for performance critical applications, published today this trading update for the four months to the end of April 2021, ahead of the AGM taking place later today.
Trading in the first four months of the year has continued to strengthen with Group revenue 7% above last year on an organic¹ basis, building on the strong start made in the first two months of the year. As the market recovers, we have seen strong growth across healthcare, automation and electrification markets as demand for products that enable a cleaner, smarter and healthier environment continues.
We continue to book orders ahead of revenue, enhancing order book visibility compared to previous years, with strength across all three divisions, although we are mindful of the potential impact on output of supply chain shortages and logistics challenges. As a result, the Board now anticipates adjusted operating profit for the full year to be towards the upper end of market expectations2.
The Torotel business, acquired in November 2020, is performing well and we have won a new multi-year contract with an existing TT aerospace and defence customer. With the cross-selling win and the pipeline of new business opportunities, Torotel is now expected to perform ahead of plan.
The Group’s ongoing self-help programme continues to progress well, supporting our plans to deliver double digit operating margins, with preparations underway for the planned site closures to improve efficiency further.
Commenting Richard Tyson, TT Electronics Chief Executive Officer said:
“We have seen continuing good growth across our key markets and in our three divisions in the period and now anticipate our performance for the year to be towards the upper end of market expectations, reflecting our exposure to structural growth dynamics. Our strong growth, the contribution from acquisitions made in 2020, and our self-help actions give us confidence in 2021 and beyond.”
Notes
¹Excluding the impact of exchange rates, acquisitions and disposals
2Latest company compiled view of market expectations shows a consensus adjusted operating profit of £34.5m with a range of £33.6m to £35.4m
