Electrical components and sensors group TT has certainly suffered in the downturn. Indeed, even after stripping out exceptionals, including a £14.2m restructuring charge, group pre-tax profits still slumped to just £0.8m from last year's £21.1m.
Still, management has launched a root and branch overhaul that saw poor performing businesses and factories either closed or sold. In fact, 19 per cent of the workforce has been axed, which helped reduce operating costs. What's more, debt was cut from £113m to £57.1m in 2009, thanks to improved working capital and better cash flow.
Going forward, TT aims to cut dependence on the fairly weak automotive sector without reducing its exposure to vehicle safety and green technology. Last year the group's automotive sales generated 36 per cent of total revenues, down from 40 per cent in 2008, and TT aims to cut that back to 20-25 per cent. Meanwhile growth markets, such as diagnostic healthcare technology and defence markets, have also been identified as areas to focus on.
KBC Peel Hunt expects adjusted pre-tax profits of £11.3m for 2010, giving EPS of 4.7p (£0.8m and loss per share of 1p in 2009).
TT ELECTRONICS (TTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 85p | MARKET VALUE: | £132m | |
| TOUCH: | 85-86p | 12-MONTH HIGH: | 91p | LOW: 16p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 101p* | NET DEBT: | 37% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 565 | 26.8 | 11.8 | 10.05 |
| 2006 | 539 | 40.0 | 18.1 | 10.05 |
| 2007 | 545 | 33.3 | 15.5 | 10.05 |
| 2008 | 584 | 17.3 | 7.5 | 3.69 |
| 2009 | 500 | -17.2 | -12.6 | nil |
| % change | -14 | - | - | -100 |
Ex-div: - Payment: - *Includes intangible assets of £83.5m, or 54p a share | ||||
