TT Electronics plc (LON:TTG) have today published interim results for the half-year ended 30th June 2021.
Highlights
· Record order book and continued strong order intake with good visibility building for 2022
· H1 book to bill of 134%
· Significant new customer wins, reflecting focus on structural growth markets underpinned by megatrends and ESG drivers
· Revenue up 16% for the period on a constant currency basis, 12% on an organic basis
· Successful self-help programme remains on track to deliver expected savings at reduced cost
· Adjusted operating profit up 27% benefiting from growth, self-help programme and M&A
· Adjusted operating margin improved to 6.7% and run rate margin higher at 8.0% excluding Virolens start-up costs
· Statutory operating profit increased to £9.3m, statutory basic EPS of 3.3p
· Interim dividend of 1.8p per share reflecting confidence in outlook
Outlook
· Order and sales momentum continue; 2021 expected revenues already fully covered
· Confident in medium term outlook and further modest increase in full year profit expectation
· Anticipate strong improvement in adjusted operating margin and cash conversion in H2
· Increased visibility in our path to deliver double digit Group operating margins
| £ million (unless otherwise stated) | Adjusted Results1 | Statutory Results | |||||
| H1 2021 | H1 2020 | Change | Change | H1 2021 | H1 2020 | ||
| Restated2 | Constant fx | Restated2 | |||||
| Revenue | 235.6 | 210 | 12% | 16% | 235.6 | 210 | |
| Operating profit | 15.9 | 13.2 | 20% | 27% | 9.3 | -1.1 | |
| Operating profit margin | 6.70% | 6.30% | 40bps | 50bps | 3.90% | -0.50% | |
| Profit before tax | 14.1 | 11.3 | 25% | 33% | 7.4 | -3 | |
| Basic earnings per share | 6.5p | 5.6p | 16% | 23% | 3.3p | (1.8)p | |
| Dividend per share | 1.8p | – | – | ||||
| Return on invested capital (2020: year-end) | 8.30% | 7.70% | 60bps | ||||
| Cash conversion | -7% | 53% | |||||
| Free cash flow1 | -10.3 | -5.2 | |||||
| Net debt (2020: year-end) 1 | 107.3 | 83.9 | |||||
| Leverage (2020: year-end)1 | 2.0x | 1.6x |
Richard Tyson, TT Electronics Chief Executive Officer, said:
“We are really pleased to have delivered a strong performance in the first half with a record order book and strong growth as a direct result of the steps we have taken to reposition and improve the quality of the business. This growth together with the benefits of our self-help programme and higher margin acquisitions have resulted in improved margins.
With 2021 expected revenues already fully covered by orders, continuing demand momentum and the benefits of our successful self-help programme being realised we are confident of delivering a further improvement in full year 2021 results and have increased visibility in our path to double digit margins.”
TT Electronics is a global provider of engineered electronics for performance critical applications. It solves technology challenges for a sustainable world. TT benefits from enduring megatrends in structurally high-growth markets including healthcare, aerospace, defence, automation and electrification. TT invests in R&D to create designed-in products where reliability is mission critical. Products designed and manufactured include sensors, power management and connectivity solutions. TT has design and manufacturing facilities in the UK, North America, Sweden and Asia.
