10 May 2024

TT Electronics plc

AGM Trading Update

Full year outlook unchanged, on track for 10% operating margin target

TT Electronics plc ("TT", "the Group"), a global engineer and manufacturer of electronic solutions for critical applications, publishes the following trading update on the Group's performance for the four months to 30 April 2024 (the "period"), ahead of the AGM taking place later today.

Trading update

Group revenue in the period was 2 per cent lower than the previous year on an organic¹ basis, but 1 per cent higher excluding the impact of pass-through revenues which continue to reduce.

Book to bill in the period was positive at 102 per cent with good performance in the Europe and Asian regions however, de-stocking continues and is now expected to normalise during H2. This is impacting our shorter cycle component products, primarily in North America. We have taken cost action to offset the lower demand and as a consequence expect the H2 profit weighting to be more pronounced than normal.

We also continue to unlock significant value through our self-help programme, Project Dynamo, as outlined at our recent Capital Markets Event.

The Board's expectations for the year remain unchanged and the business remains on track to deliver 10 per cent adjusted operating margin in 2024.

Commenting Peter France, Chief Executive Officer said:

"Whilst there is continuing global macro-economic uncertainty, the outlook for our markets remains good. The significant orderbook coverage and our prompt actions across the business underpin the Board's confidence in an unchanged outlook for the year and the delivery of the 10 per cent operating margin target.

Project Dynamo is progressing at pace and the new organisational structure is already helping to optimise resources, drive operational standards and increase customer intimacy as we remain laser focused on efficiency, growth and innovation."

Notes:

1.   Organic growth is calculated by excluding the impact of exchange rates, acquisitions and disposals.

2.   TT will announce its half year results on 8 August 2024.

3.   Latest company compiled view of market expectations shows a consensus adjusted profit before tax of £46.2 million within a range of £45.0 million to £47.3 million for the year ended December 2024.

About TT Electronics

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TT Electronics is a global provider of engineered electronics for performance critical applications.

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The company operates in industries where there are structural growth drivers, working with market-leading customers primarily in the industrial, medical, aerospace and defence sectors. Products designed and manufactured include sensors, power management devices and connectivity solutions. TT has design and manufacturing facilities in the UK, North America and Asia.

Cautionary statement

This update contains forward-looking statements. These have been made by the directors in good faith based on the information available to them up to the time of their approval of this update. The directors can give no assurance that these expectations will prove to have been correct. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The directors undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.