TT Electronics’s (TTG) management describes it strategy – somewhat simplistically – as “picking the right customers in the right markets”. Simple it may be, but it is also effective; the group’s tilt towards the aerospace & defence and medical sectors led to 8 per cent organic growth in the first half of 2019. The two sectors now account for 45 per cent of sales.
TT’s rapid expansion has increased working capital demands, leading cash conversion to dip to just 28 per cent from 105 per cent last year. But this is expected to reverse in the second half of the year.
Acquisitions Stadium and Precision are integrating well, and are on track to generate £2.5m in synergies by 2020. Management said it still has £70m-£80m in balance sheet capacity for deals and is “keen to go again”.
