Self-help electrifies TT Electronics

One of Mr Tyson's first goals involved transferring production lines to cheaper Romania and Mexico. Fortunately, the £23m cash cost associated with this complex process was £7m less than expected and annual savings of £5m should be seen from 2017, a year earlier than thought. Providing another boost is the relocation of production from the US to the UK to create savings and improve timing and inventory levels.

TT's balance sheet, which was previously a source of contention among investors, also continues to be strengthened by tightening control of capital expenditure and working capital. In 2015, adjusted cash conversion reached 136 per cent - up from just 3 per cent in 2014 - suggesting that better discipline is delivering the required results. Analysts were impressed at the speed of the transition, with net debt at the end of 2015 of £56m well below expectations.

These developments, together with investment and growth initiatives, offer hope that earnings will rise and protect the sizeable dividend. TT's determination to better fulfil customer wishes similarly delivered promising results in 2015. Providing superior quality products at a faster rate helped the engineer to bag a number of big contracts. Highlights included a number of wins for its core automotive business in China, a region targeted by TT as part of its bid to diversify away from the big three German carmakers.

Encouragingly, the group has also been benefiting from the launch of products designed to tap into legislative change. For example, its new AdBlue optical fluid sensor reduces nitrogen oxide in diesel exhaust systems. Given how polluted the developing world is, this kit helped it to secure its first customers in Korea, India and China. And it has been crafting products to optimise electric mobility, which plays well into the rapid global shift towards the electrification of engines and vehicles.

Management's aim to branch out into less commoditised growth markets has been significantly bolstered by its £42.2m acquisition of Aero Stanrew. The high-margin electronic business manufactures specialist ruggedised electromagnetic components and systems for Airbus and Boeing's latest batch of energy-efficient planes. Cross-selling and cost synergy opportunities are likely to provide an added bonus.