7th Aug 2019 10:25
(Alliance News) - Electrical engineering firm TT Electronics PLC hiked its interim dividend Wednesday following "strong" underlying profit and revenue growth despite "tougher" market conditions.
For the six months ended June, pretax profit narrowed 28% to GBP5.1 million from GBP7.1 million the year prior. This was despite revenue rising 23% to GBP238.2 million from GBP194.2 million the year before.
Profit performance was primarily hurt by GBP8.2 million in charges related to restructuring, compared to a GBP1.8 million gain the year prior. The firm also incurred GBP4.1 million in acquisition related costs, down from GBP8.7 million the year before.
Underlying pretax profit - excluding one-off costs - widened 24% to GBP17.4 million from GBP14.0 million the year prior.
"We have delivered strong revenue and profit growth alongside further margin progression in the first half despite a tougher market backdrop," TT Chief Executive Officer Richard Tyson said.
"The evolution of TT into a higher quality, better balanced group reflects our strategic focus on picking the right customers in the right markets and investing in the right capabilities," Tyson added. "The actions we have taken to concentrate on sensing, power and connectivity solutions across aerospace and defence and medical, whilst refining our portfolio of businesses through acquisitions and disposals have transformed TT."
TT proposed a 2.10 pence per share interim dividend, up 7.7% from 1.95p the year before.
"We believe our strategy to position TT to benefit from 'electronics everywhere' will continue to strengthen the group," Tyson continued. "Despite the current macroeconomic environment, our first half performance and order momentum position us well to make further progress in 2019 and beyond."
Shares in TT were 1.9% higher at 225.23 pence in London on Wednesday.
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