TT Electronics makes 'good progress' on Project Dynamo in H1

8th Aug 2024 09:29

(Sharecast News) - Electronic components manufacturer TT Electronics said on Thursday that it has made "good progress" in the early stages of Project Dynamo, its programme to unlock value and drive financial and operational improvements across the board.

TT Electronics stated adjusted revenues were down 11% in the six months ended 30 June to £274.4m, while operating profits slumped 8% to £22.2m and pre-tax profits fell 12% to £17.0m. Operating profit margins narrowed 20 basis points to 8.1%.

Basic earnings per share were down 12% on an adjusted basis at 7.2p, while interim dividends were raised by 5% to 2.25p per share

The London-listed group said its performance was "resilient" and came against a "mixed backdrop", with strong European and Asian growth offset by weak demand in North America. It also highlighted a solid performance in aerospace and defence but pointed to certain headwinds in distribution.

Order intake was up 15% in H1, while TT's book-to-bill ratio was 110% and cash conversion was at 30%.

TT Electronics added that it had identified £17.0m of net cost savings and margin improvements by FY26, up from £5.0m-6.0m, of which £4.0m has already been actioned. The group's inventory management project was also expected to deliver £15.0m of cash in H2, with an additional £15.0m by FY26.

Chief executive Peter France said: "The group's order book and current momentum of order intake in our components business underpin our confidence in the full year outturn."

As of 1030 BST, TT Electronics shares were up 5.31% at 146.38p.

Reporting by Iain Gilbert at Sharecast.com