6th Mar 2019 10:22
LONDON (Alliance News) - Shares in electrical engineer TT Electronics PLC were in favour on Wednesday as it hiked its 2018 dividend after underlying profit and revenue both grew in an "excellent" year for the firm.
Shares in TT were 4.1% higher at 210.22 pence on Wednesday.
In 2018, pretax profit narrowed 18% to GBP14.6 million from GBP17.7 million the year prior. This was despite revenue rising 19% to GBP429.5 million from GBP361.1 million the year before.
Profit performance was hurt by a sharp jump in administrative costs to GBP69.5 million from GBP50.8 million the year before. This was primarily related to one-off acquisitions, restructuring and pension charges during the year.
In April 2018, TT acquired electronics firm Stadium Group PLC for GBP45.8 million.
Underlying pretax profit - excluding one-off costs - widened 43% to GBP31.5 million from GBP22.0 million the year prior.
"2018 was an excellent year for TT, with a strong performance on all key metrics," TT Chief Executive Officer Richard Tyson said. "We are particularly pleased with the significant organic growth and margin progression in these results."
"Our focus on growing aerospace and defence, medical and industrial markets, alongside the disposal of our Transportation division in 2017 has transformed our business," Tyson added. "The acquisitions of Stadium and Precision have enhanced our capabilities and market access and are performing very well."
TT proposed a 4.55 pence per share final dividend, up 12% from 4.05p the year prior. For the full year, the dividend rose 12% to 6.5p from 5.8p the year before.
"The growing trend for 'electronics everywhere' is an important structural driver for us, creating increasing demand for our products and solutions," Tyson continued. "By focusing on sensing, power and connectivity in areas where we have real differentiation, we are continuing to make TT a higher margin, higher quality business. Our balance sheet gives us the flexibility to continue to invest in the growth of the business."
"We enter 2019 with a better-balanced business, a strong order book, and more self-help opportunity," Tyson concluded. "We are well placed to navigate uncertain macroeconomic conditions and the group overall remains on track to make further progress in 2019 and beyond."
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