25 June 2013
TT electronics plc
Accelerating Growth, Innovation & Productivity
TT electronics plc ("TT" or "the Group"), a global provider of performance critical technology solutions to leading manufacturers, issues this statement before hosting an analyst and investor event today.
The Group announced in March that it was evolving its business through the creation of a Sensing and Control ("S&C") business to address increasing market opportunities and accelerate performance. This, together with an associated Operational Improvement Plan, will underpin the delivery of the Group's existing margin targets and enable it to drive further towards sustainable double digit margin performance.
At the meeting later today, we will present the plans being implemented by the S&C business to deliver accelerating growth, innovation and productivity. The presentation will cover the higher growth markets and regions being targeted, as well as key drivers and strategies being executed to increase sales and align the product portfolio with customer requirements. In the area of innovation we will demonstrate how we optimise investment in research and development whilst reducing the time to market. We will show some of the new products being developed within S&C and explain how these are enabling us to improve our position with major customers.
The formation of the S&C business provides a significant opportunity to continuously improve operational efficiency and accelerate productivity, including greater focus on best cost manufacturing operations. Detailed plans for realising this are being formulated, together with financial costs and benefits. We estimate that this Operational Improvement Plan will involve an investment of approximately £30 million to implement over the next 24 months, and that the associated efficiency benefits will be approximately £8 million per annum from the second half of 2015.
A full copy of the presentations made to analysts and investors at the meeting will be available on the TT website (www.ttelectronics.com) today.
Recent trading has been in line with the IMS issued on 9 May 2013, with improving order trends and the cumulative ratio of orders to sales greater than one. There is no change to the Board's expectations of the Group's performance for the year; as previously indicated performance will be more weighted to the second half reflecting sales momentum, product mix and the continuing investment to position the business for growth.
Enquiries:
TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director |
Tel: 01932 825300 |
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Hudson Sandler Andrew Hayes/Wendy Baker/Katie Matthews |
Tel: 020 7796 4133 |
Note:
This statement contains certain forward-looking statements. Such statements are made by the Directors in good faith based on the information available to them at the time of the announcement and they should be treated with caution due to the inherent uncertainties underlying any such forward-looking information.
