Shares digital

TT Electronics (TTG) – Finals PTP: £33.3m (£40m) Divi: 6.36p (6.36p)

TT Electronics’ exposure to a gloomy looking automotive market and to the weak dollar meant that the company’s shares tanked this year, losing around 64% of their value to the current 86p, and that they didn’t recover after the final figures last week.

An unexpected pension credit boosted pre-tax profits to £33.3 million, ahead of house brokers’ Landsbanki forecast. The unchanged 10.05p total dividend gives the shares an 11%-plus yield with a 2008 PE of six times, according to Landsbanki.

The electronic manufacturing services division performed strongly, while sales across the other three were down. However, a restructuring programme, with the disposal of some assets, leaves the company in a better position. An important customer approval for the Autopad technology has been received.

Shares says: A lot of bad news priced in, but the outlook is uncertain and cash has decreased.

by: Carlo Svaluto