TT Electronics warns on profits following machinery breakdown

Electronic components manufacturer TT Electronics warned on full-year profits on Wednesday as a machinery breakdown impacted production.

TT Electronics said a machinery breakdown experienced in one of its facilities, which continued for longer than anticipated, impacted third-quarter profits by roughly £2.0m, with the firm now expecting to report group adjusted pre-tax profits towards "the lower end of current market expectations" for 2023 and in the range of £43.1m-£46.0m.

Otherwise, the London-listed firm said it continues to show good year-on-year improvement, with year-to-date organic revenue growth of 4%. TT added that it was also returning to a more normal H1:H2 weighting of revenues, with sales in the four months to October reducing by 8% organically against a "strong" 2022 comparator.

"We have seen order intake normalisation during the second half as lead times have reduced, however, order visibility across the Group remains above historic levels," said TT. "We are mindful of the wider macroeconomic backdrop, but see continued positive momentum in the business, with a robust order book providing good visibility of revenues for 2024."

As of 1110 GMT, TT shares were down 4.70% at 154.0p.

Reporting by Iain Gilbert at Sharecast.com