Demand for backup power systems kept the lights on for TT Electronics, as automotive profits hit the barriers. The company won new orders for its uninterruptible power supplies from customers in Africa and the Middle East, offsetting weakness in the North American automotive market, where a three-month industrial action in the spring reduced output by 300,000 vehicles.
And while new chief executive Geraint Anderson reckons the worst is over in the US, he noted the malaise has now clearly shifted to the eurozone. The sensors division still managed to increase revenues by 12 per cent to £101m, though, thanks to new products such as Autopad sensors and growing automotive demand from China and India, where TT supplies components for the new Tata low-cost vehicle. "It's not just about low-cost manufacturing there, but addressing the domestic market," said Mr Anderson.
Other bright spots include the electronic manufacturing business, which doubled profits to £3.7m, and steady growth from aerospace customers, who now account for 9 per cent of sales.
House broker Landsbanki expects full-year pre-tax profits of £25.8m, down from £33.3m in 2007 - giving EPS of 12.3p (15.4p in 2007).
TT ELECTRONICS (TTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 102p | MARKET VALUE: | £159m | |
| TOUCH: | 101-103p | 12-MONTH HIGH: | 180p | LOW: 82p |
| DIVIDEND YIELD: | 9.8% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 119p* | NET DEBT: | 45% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 271 | 16.0 | 7.4 | 3.69 |
| 2008 | 292 | 15.0 | 7.2 | 3.69 |
| % change | +8 | -6 | -3 | - |
Ex-div:15 Oct Payment:23 Oct *Includes intangible assets of £75.1m, or 48p a share | ||||
