TT Electronics trading well after transportation sale

The company added that the global manufacturing solutions unit was returning to growth in the period as expected, with group revenue up 6% on an organic basis compared to the prior year.

Its order book across all three divisions continued to be “strongly” ahead of the prior year, the board reported, with the board explaining that its order book strength was a “positive indicator” for the balance of the year and into the first quarter of 2018.

“During the period, we completed the sale of the transportation sensing and control (TS&C) division, receiving a total cash consideration of £123.5m, moving the group into a net cash position,” the board highlighted in its statement.

As part of the separation, TT announced the closure of its global manufacturing solutions site in Romania, which was shared with the TS&C division.

It would move the lines to Rogerstone, Wales and Suzhou, China, rather than incur the costs of establishing a new facility, which the board added would further simplify its footprint.

The site closure was expected in the first half of 2018.

“2017 has been a significant year for TT, with the disposal of the transportation division completed in October,” noted chief executive Richard Tyson.

“We will use the proceeds to make further investments to accelerate our growth through capital investment and acquisitions.”

As well as executing “substantial” portfolio change, Tyson said the company was delivering “strong “growth in the continuing business.

“We remain on track to deliver further progress in 2017, in line with expectations.

“We are excited about the prospects for TT.”