TT Electronics returns to profit in first half

Electrical component maker TT Electronics managed to turn a profit in the first half of this year, off flat revenues.

Shares in the London listed company were up by 0.33% to 154p at 1331 BST.

TT posted first half pre-tax profit at £6.3m from a loss of £0.4m during the same period last year.

Revenue was flat, up 1% to £261.1m from £263.6m, and on an organic basis revenue was unchanged, which TT said was expected.

TT said its order book remained “sound” although “order intake has been mixed across different markets, and Europe in particular remains challenging”.

The company had 2015 was a “year of transition” and its new streamlined organisation was performing well. TT said it’s “Operational Improvement Plan” which involved transferring several of its operations from Germany and Romania had progressed well.

The overall plan was on track to be completed during the first half of 2017 with full run-rate benefits of £5.5m per annum anticipated in 2018, TT said.

TT’s earnings per share also fell by 30% to 4.2p from 6p and the company issued a 1.7p interim dividend to be made on October 29 for shareholders on the register on 16 October.

Numis, which held a ‘add’ rating on the stock and a price target of 170p said interim results were in line with management expectations and ahead of Numis’ forecasts.

Analyst David Larkham said in a note management was delivering to plan and a good mix in the order book suggested better margins moving forward.