Shares in TT Electronics (TTG) tumbled 9 per cent on the back of these disappointing full-year figures. The group, which supplies precision components to the likes of BMW and Daimler, is battling difficult markets and remains mired in a painful restructuring. Strip out £33.5m in exceptional costs and operating profit slid 5 per cent to £29.2m. But even that was flattered by a one-off £4m order for steering position sensors.
Excluding currency shifts, underlying operating profit from sensors and controls slid 13 per cent. That reflected weak sales of transportation sensors and continued investment in product development. More positively, the acquisition of Roxspur strengthened the division's presence in industrial pressure, temperature and flow sensors.
On the other hand, profit soared within the group's smaller components segment. The good news is set to continue after the business inked a landmark contract with Rolls-Royce subsidiary CDS to provide fuel supply controls for engines.
TT Electronics has appointed new executives, refocused on key markets and slashed costs as part of the restructuring programme. The group has earmarked £24m to relocate production from Germany to Romania, but only expects the plan to deliver £3.5m in annual savings.
Broker Numis Securities expects pre-tax profit of £19m this year, giving EPS of 8.9p (from £27.6m and 12.9p in 2014).
| TT ELECTRONICS (TTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 119p | MARKET VALUE: | £189m | |
| TOUCH: | 119-120p | 12-MONTH HIGH: | 225p | LOW: 96p |
| DIVIDEND YIELD: | 4.6% | PE RATIO: | na | |
| NET ASSET VALUE: | 117p* | NET DEBT: | 8% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 556 | 25.1 | 11.9 | 2.8 |
| 2011 | 591 | 31.8 | 15.8 | 4.4 |
| 2012 | 477 | 22.0 | 10.3 | 5.0 |
| 2013 | 532 | 18.3 | 8.8 | 5.4 |
| 2014 | 524 | -5.9 | -6.6 | 5.5 |
| % change | -1 | -132 | -175 | +2 |
Ex-div: 21 May Payment: 4 Jun *Includes intangible assets of £87.7m, or 55p a share | ||||
