Surrey's TT Electronics sees rise in operating profit

An electronics engineering firm that serves the aviation, defence and healthcare industries has reported an uplift in operating profits.

Woking-based TT Electronics has reported a 34 per cent increase in operating profits year-on-year with revenues also increasing by 12 per cent.

TT Electronics is a global provider of engineered electronics for performance critical applications with facilities in the UK, North America, and Asia.

Its products include sensors, power management and connectivity solutions.

READ MORE: Oxford Instruments hires TT Electronics' CEO as it posts positive results

Richard Tyson, Chief Executive Officer, said: "We are really pleased with a great performance by the team to achieve these results, delivering strong organic growth in revenue and profit. Adjusted operating margin is up by 140 basis points at constant currency. Leverage has reduced on the back of the inflection in cash generation and increased adjusted EBITDA.

"The business is clearly demonstrating the benefit of the work to re-position in the right markets, with the right customers and from the right operational footprint. More new customer wins together with the ramp-up of previously awarded contracts continue to provide multi-year revenue visibility and the new business pipeline remains strong, supported by new re-shoring opportunities.

"The Group's order book underpins our full year anticipated revenue projections, and we remain focused on executing on the order book, delivering continued strong profit growth and driving a material step up in free cashflow and further reducing leverage by the year end. While mindful of the macroeconomic backdrop, our performance in the first half, alongside continued strong momentum in the business provides the Board with increased confidence in delivering its full year expectations. "

TT Electronics said it is expanding its facilities in Kuantan, Malaysia and Mexico increases while also also announcing that it had appointed Peter France as CEO to succeed Richard Tyson, who is departing for Oxford Instruments, on October 2.