TT Electronics says 2023 saw strong operational and financial progress
Woking-based TT Electronics, which provides products for performance critical applications, said it was on track to deliver a 10% operating margin this year after a strong 2023 financially and operationally.
Reporting results for the year to December 31, 2023, the firm said adjusted profit before tax was £43 million, up from £40.4 million in 2022, on adjusted revenue of £613.9 million (2022: £617m).
READ MORE: TT Electronics reports growth in trading update
Free cash flow came in at £23.9 million with cash conversion at 92% and leverage reduced to 1.7x. The company said order book visibility remained above historic, pre-Covid levels.
Peter France, who joined TT as CEO last October, said: "The group has delivered against the priorities that were set for the year: strong free cash generation has led to further reduction in leverage, and our strong order book was converted into double-digit operating profit growth, with good operating margin progression supported by a recovery in our P&C business."
He said he saw "considerable" opportunity to unlock further value in the business by strengthening operational execution, expanding and optimising routes to market and enhancing product innovation.
"A first step in driving improved margins and simplifying the portfolio is the recently announced sale of our businesses in Cardiff, Hartlepool and Dongguan, he added.
"Based on the strength and level of visibility in our order book, current end market activity and operational improvement initiatives that are underway, while mindful of the wider macro environment, we are on track to deliver a 10% operating margin in 2024."
The company, which has three divisions, makes engineered electronics for the global market and has customers in the industrial, medical, aerospace and defence sectors. It has design and manufacturing facilities in the UK, US, Sweden and Asia.
Its power and connectivity (P&C) division designs and manufactures power products and devices which enable the capture and wireless transfer of data. It also has a global manufacturing solutions division.
The firm's sensors and specialist components division works with customers to develop standard and customised solutions, including power management devices.
