The new era of TT Electronics (TTG) is upon us. The electronics engineer disposed of its lower-margin transportation business in 2017, and made two acquisitions in “design-led connectivity” and the medical space. So now, around 40 per cent of its 2018 revenues is generated from medical, aerospace and defence work.
Most interesting is Stadium, its April acquisition, which sits at the heart of TT Electronics’ push into the Internet of Things (IoT), a rather nebulous concept that seeks to enable data-sharing across devices in industry and homes alike. In eight months, Stadium has outperformed expectations and contributed £42.8m in revenues. Chief executive Richard Tyson said that TT can now integrate its IoT offering with its sensing technologies for factories – TT also has its eye on the logistics sector. To help unlock the potential of IoT technologies, the company has established a dedicated centre in Shenzhen, China.
Analysts at Numis forecast 2019 full-year pre-tax profits and earnings per share of £36.5m and 18.4p, respectively, against prior year figures of £31.5m and 16.2p.
| TT ELECTRONICS (TTG) | ||||
| ORD PRICE: | 210.5p | MARKET VALUE: | £344m | |
| TOUCH: | 210-210.5p | 12-MONTH HIGH: | 282p | LOW: 176p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 170p* | NET DEBT: | 15% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 524 | -5.9 | -6.6 | 5.5 |
| 2015 | 510 | 13.8 | 6.5 | 5.5 |
| 2016 | 333 | 14.3 | 7.3 | 5.6 |
| 2017** | 361 | 17.7 | 9.7 | 5.8 |
| 2018 | 430 | 14.6 | 8.0 | 6.5 |
| % change | +19 | -18 | -18 | +12 |
| Ex-div: | 25 Apr | |||
| Payment: | 17 May | |||
| *Includes intangible assets of £193m, or 118p a share **Turnover restated for IFRS 15 accounting standards | ||||
