Pre-Close Trading Update

RNS Number : 3719F

TT electronics PLC

12 January 2010

 



TTG

TT electronics plc

Pre-close Trading Update

TT electronics plc ("TT" or "the Group"), a world leader in sensor and electronic component technology, makes the following statement on trading prior to entering its close period. It is based on the results for the eleven months to 30 November 2009 and preliminary sales and cash balances for December. The Group will announce its final results for the year ended 31 December 2009 on 15 March 2010.

Current Trading

Trading for the last quarter of 2009 was slightly ahead of the Board's expectations due to an improvement in performance across the Group.  Sales for the full year ended 31 December 2009 were approximately 23% lower than 2008 at constant exchange rates compared with the 29% reduction reported at the half year.

Strategy Implementation

The Group has continued to implement the strategy announced in January 2009.  

As previously reported, significant progress has been made during the year in restructuring the Group's businesses and reducing the cost base, with the measures taken expected to lead to an annualised cost reduction of over £30 million. As part of this programme, TT announced the transfer of manufacturing at Glenrothes in Scotland to Welwyn Components whilst retaining a warehousing and distribution facility.  TT also announced the further transfer of manufacturing activities to China from the UK plants of WT Henley and AB Electronics. Restructuring of the magnetics business within the General Industrial division is ongoing.  

The Key Account Management programme has been extended to 14 customers and the Virtual Market teams continue to make good progress resulting in additional customer wins. A new Divisional Chief Executive for Components was appointed to succeed the present incumbent on his expected retirement.

The Group has entered into consultations with affected staff on the proposed closure to future accrual of its defined benefit pension scheme in the UK. 

Financial Position

The Group achieved a significant improvement in working capital performance in the last quarter of 2009, exceeding the upgraded annual target reduction in working capital of £17-20 million. As a result, net debt at the end of December 2009 was below £60 million, compared with £113 million at the start of the year.

Outlook

Although trading has been slightly ahead of the Board's expectations over the last quarter due to re-stocking by customers, the Board, taking into account the global economic uncertainty, remains cautious on the outlook for 2010. The implementation of the strategy, together with the measures taken to reduce the cost base, positions the Group to develop its business further in its selected markets.  

Enquiries:

TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director	Tel: [phone]
Biddicks Zoë Biddick	Tel: [phone]

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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