13 May 2022

TT Electronics plc

AGM Trading Update

Continued strong order intake, with full year outlook unchanged

TT Electronics plc ("TT", "the Group"), a global provider of engineered electronics for performance critical applications, publishes the following trading update on the Group's performance for the four months to the end of April 2022 (the 'period'), ahead of the AGM taking place later today.

Strong Demand Continuing

Trading in the period reflects the ongoing healthy growth trends in TT's focus end-markets and the strength of our customer relationships. Group revenue was 6 per cent higher than the previous year on a constant currency basis and 5 per cent higher on an organic¹ basis.

Order intake continues to run well ahead of revenue with book to bill for the four months running at 151 per cent.

Good Operational Execution

Overall, the business continues to execute well in the face of COVID disruption and the well-documented supply chain issues. In the period, our Power and Connectivity facility in Dongguan was temporarily closed, but our larger GMS facility in Suzhou, near Shanghai, has remained open.

Our Sensors and Specialist Components and GMS divisions are performing well, whilst the results of our Power and Connectivity division are expected to be second half weighted. Our well-established self-help initiatives and our decisive action on pricing continue to effectively offset current cost inflation.

The integration of the Ferranti acquisition is progressing to plan and the team have already been successful with new business opportunities.

Balance Sheet

Given the high levels of demand and supply chain constraints, we have continued to invest in inventory to support the growth of the business. As a result, our net debt and leverage at the end of June are expected to increase from the year-end position before reducing to more normalised levels by the year end.

Full year expectations unchanged

Whilst macroeconomic conditions remain uncertain, the year has started well, with continued growth in our end markets, and good execution against the well-documented challenges.

Accordingly, management's outlook for the year as a whole is unchanged.

Notes:

1.   Organic growth is stated at constant currency and is calculated by comparing current year actual results to prior year results retranslated at current year actual exchange rates.  Organic revenue excludes the impact of acquisitions and disposals.

2.   TT will announce its half year results on 4 August 2022.

3.   Latest company compiled view of market expectations shows a consensus adjusted operating profit of £43.7 million within a range of £41.6 million to £44.8 million for the year ended December 2022.

About TT Electronics

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

TT solves electronics challenges for a sustainable world. TT benefits from enduring megatrends in structurally high-growth markets including healthcare, aerospace, defence, electrification and automation. TT invests in R&D to create designed-in products where reliability is mission critical. Products designed and manufactured include sensors, power management and connectivity solutions. TT has design and manufacturing facilities in the UK, North America, Sweden 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.