10th May 2018 14:14
LONDON (Alliance News) - TT Electronics PLC said Thursday trading has been "positive" for the four months to the end of April with revenue growing on an organic basis.
During the period, organic revenue was up 4% compared to the prior year due to order intake across all three divisions being "strongly" ahead of the year before.
The on-going industry-wide component shortages has led to customers placing orders further ahead than last year, TT said.
As a result, TT's confidence in it being able to deliver growth in 2018 is "increasing".
In April, the electronics company completed the acquisition of electronic technology company Stadium Group PLC for an enterprise value of GBP59.7 million. In the first four months of the year, Stadium's revenue is up 5% at constant currency.
The company is building a "centre of excellence" in Bedlington, north East England, for about GBP3 million and about two-thirds of the investment will be incurred in 2018. During the period, TT sold a "surplus" site in Birtley, north East England, for about GBP4 million.
Chief Executive Richard Tyson said: "Momentum in our operational performance and order demand has continued into 2018, and we have increasing confidence of making strong progress in 2018. TT is growing, and we are investing to accelerate our strategy to make TT a higher margin business, providing increasingly value-added solutions to our customers.
"The integration of Stadium is underway led by a dedicated team and we are refining our detailed synergy plan. We continue to review a number of acquisition opportunities where we can deploy capital to add complementary capabilities, customers and scope to TT."
Shares in TT Electronics were down 0.7% Thursday afternoon at 226.50 pence each.
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