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2018 Full Year Results 

“2018 was an excellent year for TT, with a strong performance on all key metrics. We are particularly pleased with the significant organic growth and margin progression in these results. Our focus on growing aerospace and defence, medical and industrial markets, alongside the disposal of our Transportation division in 2017 has transformed our business. The acquisitions of Stadium and Precision have enhanced our capabilities and market access and are performing very well. 

The growing trend for ‘electronics everywhere’ is an important structural driver for us, creating increasing demand for our products and solutions. By focusing on sensing, power and connectivity in areas where we have real differentiation, we are continuing to make TT a higher margin, higher quality business. Our balance sheet gives us the flexibility to continue to invest in the growth of the business. We enter 2019 with a better-balanced business, a strong order book, and more self-help opportunity. We are well placed to navigate uncertain macroeconomic conditions and the Group overall remains on track to make further progress in 2019 and beyond.”

Richard Tyson, Chief Executive Officer
March 2019


Full year 2018 results - Key summary

 

Strategic Highlights

  • Delivered strong organic and acquisitive growth in revenue and profitability
  • Substantial number of new customer and contract wins
  • R&D investment up 37% to £12.6m (5.1% of revenue, up from 4.6%)
  • Margin growth driven by self-help and operational leverage
  • Creating value through our disciplined M&A strategy; Precision performing well and Stadium performing ahead of expectations

Financial Headlines

  • 6% full year organic revenue growth; 9% organic growth in H2
  • Underlying operating profit and PBT both materially increased
  • Underlying operating margins up by 120 basis points to 7.8%
  • Good underlying cash conversion at 88%
  • Full year dividend up 12% to 6.5p

 

£ million unless otherwise stated Underlying1 Statutory
 
2018

20175
Change Change
constant fx
2018 20175

Continuing Operations

           
Revenue 429.5 361.1 19% 21% 429.5 361.1
Operating profit 33.4 24.3 37% 42% 16.5 20.0
Operating profit margin (%) 7.8% 6.7% 110bps 120bps    
Profit before tax 31.5 22.0 43% 48% 14.6 17.7
Earnings per share (pence) 16.2p 10.9p 49% 54% 8.0p 9.7p
Return on invested capital2 11.5% 10.6% 90bps 90bps    
Cash conversion3 88% 98%        

Total Operations

           
Earnings per share (pence)         8.3p 29.5p
Free cash flow4         8.5 4.7
Net (debt)/ funds          (41.7) 47.0
Dividend per share (pence)         6.5p 5.8p

1. Excluding the effect of restructuring and other non-recurring costs and acquisition related costs
2. Rolling 12 month underlying operating profit return on average invested capital
3. Underlying operating cash flow (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
5. Re-stated for IFRS 15