Interim Management Statement

RNS Number : 4669B

TT electronics PLC

28 October 2009

 



28 October 2009

TTG

TT electronics plc

Interim Management Statement

TT electronics plc, a world leader in sensor and electronic component technology, issues this Interim Management Statement in accordance with the UK's Listing Authority's Disclosure and Transparency Rules. It covers the period from 1 July 2009 to the date of this announcement, and is based on the trading results for the nine months ended 30 September 2009.

Current Trading

As noted in the interim announcement, trading conditions in the first half of 2009 were very difficult with destocking in many markets due to the severe economic downturn. Sales in the third quarter continued to be below the same period last year but were in line with management expectations. The Group has continued to trade profitably on a monthly basis due to the actions implemented to align the cost base with current levels of demand.

Strategy

We continue to make progress in implementing the strategy announced in January 2009. The new divisional structure introduced to improve execution, facilitate cross divisional working and increase sales continues to yield benefits.  Significant progress has been made during the year in restructuring the Group's businesses and reducing the cost base, with measures taken expected to lead to an annualised cost reduction of over £30 million.  As this programme nears completion, we are increasing our focus on the delivery of actions that will better position the business for the future including the consolidation of regional sales activity in the Components business across Europe, USA and the Far East. We continue to see benefits from our Key Account Management programme on a customer by customer basis and have recently been granted preferred supplier status on a global basis by a major industrial manufacturer. In addition, teams drawn from across a number of our business units are now working together with key customers on  new design projects.  Our Secure Power division has recently won a further multi-year offshore oil and gas maintenance contract which will be serviced out of the facility opened in Aberdeen earlier this year. 

Financial Position

The improvement in working capital, which was a key feature of the first half performance, has continued in the third quarter and is in line with meeting the upgraded annual target reduction of  £17-20 million. Net debt at the end of September 2009 was £92.6 million compared with £113.2 million at the start of the year and £100.0 million at June 2009. We remain comfortable with the level of headroom on available banking facilities and loan covenants.

Outlook

Whilst there is still limited visibility, market conditions continue to be stable as noted in the interim statement in August and our expectations of trading performance for the full year are unchanged.

Enquiries:

TT electronics plc                                                             Tel: [phone]

Geraint Anderson, Group Chief Executive

Shatish Dasani, Group Finance Director

Biddicks                                                                            Tel: [phone]

Zoë Biddick

Notes to Editors:

TT electronics plc is a technology based group, providing components, sensors, integrated manufacturing services and secure power solutions to a broad base of customers worldwide.

For more information visit www.ttelectronics.com

 

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