Results centre

 
Richard Tyson

"2017 was a pivotal year for TT. We are delighted with both the strong trading performance and the disposal of the Transportation division. TT is becoming a higher margin, higher quality business with increased investment capacity to accelerate growth.

We enter 2018 benefitting from the increasing proliferation of electronics in our markets. We are focusing our resources where we have strong and differentiated capabilities and are again increasing our investment in R&D and business development to maximise this opportunity. Momentum in our operational performance and our improved order book give us confidence, despite current foreign exchange headwinds, of making strong progress in 2018."

Richard Tyson, Chief Executive Officer
March 2018

 

Full year 2017 results - Key summary

Strategic progress

  • Portfolio transformation: disposal of Transportation division for £123.2 million in October 2017
  • Pivotal year for TT with strong revenue and profit growth
  • Realising benefits of management actions started in 2015
    • Increased customer focus: new customer wins and sales to existing customers
    • New products launched: increased R&D investment underpinning future growth
    • Continuing BE Lean activities: benefits to our operations and customer performance
  • All three divisions delivered organic revenue growth
  • Recommended cash offer for Stadium Group plc announced in February 2018

Financial Headlines

  • 5% organic revenue growth from good sales performance and increased market demand
  • Underlying operating profit up 12%, PBT up 28% at constant currency
  • Underlying operating margins increased to 6.8%, up by 60 basis points
  • Excellent underlying cash conversion at 98%
  • 140 basis points increase in return on invested capital to 10.6%
£ million unless otherwise stated Underlying1 Statutory
  2017 2016 Change Change
constant fx
2017 2016
Continuing Operations            
Revenue 360.0 332.7 8% 5% 360.0 332.7
Operating profit 24.3 20.6 18% 12% 20.0 18.8
Profit before tax 22.0 16.1 37% 28% 17.7 14.3
Earnings per share (pence) 10.9p 7.8p 40% 30% 9.7p 7.3p
Return on invested capital2 10.6% 9.2% 140bps      
Cash conversion3 98% 79%        
Total Operations            
Earnings per share (pence)         29.5p 10.3p
Free cash flow4         4.7 13.8
Net funds (debt)         47.0 (55.4)
Dividend per share (pence)         5.8p 5.6p

1. Excluding the effect of restructuring costs and acquisition related costs
2.  Rolling 12 month underlying operating profit return on average invested capital
3. Underlying operating cash flow (underlying EBITDA less net capital expenditure excluding property disposals, capitalised development expenditure, working capital and non-cash movements) divided by underlying operating profit
4. Net cash flow from operating activities less net cash flow from investing activities less interest paid