20th Aug 2015 06:59
LONDON (Alliance News) - Electronic components company TT Electronics PLC on Thursday said it turned a pretax profit in the first half of 2015, but its underlying performance was hit by higher costs and weaker contract values, while organic revenue growth was flat.
TT said its pretax profit for the six months to the end of June was GBP6.3 million, compared to a GBP0.4 million loss a year earlier when the group booked GBP12.7 million in restructuring costs, which were reduced to only GBP2.2 million in the first half of 2015 as the group continues with its strategic shift.
Underlying operating profit, which strips out exceptional items, impairments and acquisition-related costs, fell to GBP10.4 million from GBP13.1 million a year earlier, primarily due to higher research and development costs, falls in the value of transportation sensing and control contracts and sales in advanced components which did no recur.
Revenue in the half was up to GBP263.6 million from GBP261.1 million, though organic revenue was flat, with the reported rise being driven by the acquisition of Roxspur Measurement and Control Ltd, which offset a hit TT took from the weak euro. TT said its order book remains solid, though order intake has been mixed across different markets, with Europe proving particularly challenging.
The company said it will pay a flat interim dividend of 1.7 pence per share.
"In March we set out our strategic plan aimed at re-building performance to deliver sustainable, profitable growth. In the context of 2015 being a year of transition, the first half results are encouraging with trading in line with our expectations and a good performance in terms of cash conversion," said Chief Executive Richard Tyson.
"We have strong positions in attractive growth markets, loyal customers who respect and value what we do, and strong, technically robust products that perform well in demanding environments. Current market conditions remain challenging, especially in Europe but, with our order book remaining solid and encouraging early progress on our strategic plan, our outlook for the full year is unchanged," Tyson added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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