11th Mar 2025 09:56
(Alliance News) - TI Fluid Systems PLC on Tuesday said profit fell during 2024 despite a rise in revenue, and it will pay no final dividend due to its impending takeover by ABC Technologies Inc.
The Oxford, England-based manufacturer of thermal management and fluid handling systems said pretax profit in 2024 was EUR104.5 million, falling 14% from EUR121.1 million in 2023. After exceptional items, pretax profit sank 47% to EUR63.9 million.
This was the result of "higher restructuring costs in response to a weakening market and an exceptional non-cash write-down of intangible assets relating to the Americas product line exit," TI Fluid explained.
Revenue for the year grew 4.5% to EUR3.36 billion from EUR3.52 billion, while cost of sales reduced 3.3% to EUR2.96 billion from EUR3.06 billion.
Distribution costs were down 3.8% to EUR105.7 million from EUR109.9 million, and administrative expenses decreased 22% to EUR121.8 million from EUR155.9 million.
TI Fluid declared a total dividend of 2.40 euro cents per share, down 65% on-year from EUR6.83 euro cents. This is because it proposed no final dividend for the year, given its pending GBP1.04 billion takeover by Canadian automotive components maker ABC Technologies.
TI Fluid accepted the takeover offer from ABC back in November, after rejecting two approaches from the firm in September with offers of 165 pence and 176p per share respectively. TI Fluid accepted an offer of 200p per share, which was a 55% premium to its share price in mid-September.
The deal gave TI Fluid a GBP1.83 billion enterprise value, including debt.
Shares in TI Fluid Systems were flat at 196.60 pence in London on Tuesday morning. The stock has risen 26% over the past year.
The takeover will "provide the opportunity" for shareholders to "realise an immediate and certain cash value today" at a level which "may not be achievable until the execution of TI Fluid Systems' strategy is delivered over the medium to longer term", TI Fluid said in November. The company had said it would be "more challenging" to achieve its near-term financial objectives given the ongoing disruption to the global automotive industry.
The takeover is expected to complete during the first half of 2025.
"We have delivered a strong margin performance and strategic progress despite multiple external headwinds, demonstrating the strengths of our propulsion agnostic portfolio and our Taking-the-Turn strategy," said President & Chief Executive Officer Hans Dieltjens on Tuesday.
"Our financial performance was driven by relentless commercial execution and the benefits of our intensified productivity and efficiency measures. We also continued to successfully execute our strategic priorities by further investing in our EV growth opportunities and maximising our conventional portfolio."
By Emily Parsons, Alliance News reporter
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