8th Aug 2018 10:13
LONDON (Alliance News) - TT Electronics PLC on Wednesday expressed confidence for delivering full-year results ahead of expectations, as profit jumped by third in the first half of 2018.
The stock was trading 15% higher early on Wednesday at 252.00 pence per share.
The electronic components manufacturer said pretax profit rose to GBP7.1 million for the six months to the end of June from GBP5.4 million reported a year earlier, as revenue increased by 7.6% to GBP194.2 million from GBP180.5 million. On a constant currency basis, revenue climbed by 12%.
TT Electronics revenue included the contribution from the acquisitions of Stadium Group PLC and and Precision Inc, which were bought in April and January, respectively, for a total consideration of GBP14.6 million. The growth was driven by new sales wins and strong market demand.
The Sensors & Specialist Components division revenue came in broadly flat year-on-year at GBP71.3 million, despite sales to the company's strategic distributors increasing by 22% during the period. TT Electronics said it launched three new sensing and power management products to withstand high current surges in an electronic circuit.
The Power & Connectivity division showed a revenue growth of 18% to GBP38.7 million from GBP33.2 million the year before, driven by the acquisitions of Stadium and Precision, which contributed GBP9.9 million of revenue.
The Global Manufacturing Solutions division generated revenue of GBP84.2 million, up 13% from GBP76.3 million a year earlier, helped by growing demand in Asia and North America, primarily driven by medical customers.
TT Electronics declared an interim dividend of 1.95 pence per share, up 11% from 1.75p paid the year prior.
"TT has performed strongly in the first half," said Chief Executive Richard Tyson. "Our first half performance and order momentum give us confidence of progress for the full-year ahead of our prior expectations."
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