TT Electronics upgrades FY profit expectations, shares rally

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Sharecast News | 23 Feb, 2023

17:25 20/12/24

  • 106.50
  • 2.90%3.00
  • Max: 106.50
  • Min: 103.50
  • Volume: 1,315,663
  • MM 200 : 2.00

TT Electronics rallied on Thursday as it upgraded full-year profit expectations after its global manufacturing solutions (GMS) business outperformed.

In a brief update, the company said adjusted pre-tax profit was set to be at or around the top end of the range of consensus expectations of £36.5m to £39.4m.

It said group revenue growth in the final two months of the year remained strong, with organic growth of 20% reflecting the company’s "successful positioning in structural growth markets and new project and customer wins".

TT also said that leverage has reduced back into its 1-2 times target range as expected.

"We enter 2023 with good momentum, underpinned by a strong order book and will provide a full update with our annual results presentation on 8 March," the company said.

Broker Numis, which rates the shares at ‘buy’, said the new profit guidance is "comfortably ahead of our estimate of £37.0m, implying an upgrade of circa 7% (EPS 16.3p to 17.4p)".

At 1330 GMT, the shares were up 8.4% at 196.15p.

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