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2019 Full Year Results 

 

“Our performance in 2019 is the latest evidence of the significant business transformation we have achieved over the last five years. We have delivered a strong performance with another year of good revenue growth, double-digit profit improvement and further margin enhancement despite the macro challenges in some of our markets.

TT is continuing its path to a higher-quality, better-balanced business as a result of our investment in aerospace, defence and medical markets. Our power, sensing and connectivity solutions help to enable a more sustainable world. We have added to our technology and capabilities with the US acquisitions of Power Partners and the Covina power supply business.

We are well placed to make progress in 2020 and beyond. However, the duration and impact of the coronavirus remains uncertain, and based on the current situation we anticipate that it could impact underlying operating profit by up to £3 million in 2020.  We are focused on making further strategic progress, and our new self-help programme underpins the journey to double-digit margins.”

 

Richard Tyson, Chief Executive Officer

March 2020

 


Full year 2019 results - Key summary

 

Strategic highlights

  • Strategy continues to drive growth, enhance margin and improve quality of business
  • Aerospace, defence and medical revenues up 22% organically now 47% of Group revenues
  • New customer wins with multi-year recurring revenues; improved order book visibility for the third year in succession
  • New self-help programme launched to underpin further margin progression, improved efficiency and reduced carbon footprint;
  • Successful capital deployment: core technology acquisitions with cross-selling success and continued R&D investment

Financial headlines

  • 4% organic revenue growth; 9% growth at constant currency
  • Underlying operating profit and PBT both materially increased; underlying EPS CAGR of 21% since 2015
  • 8.4% underlying operating margin, +60 basis points
  • ROIC of 11.3%; up 10 basis points to 11.6% before the impact of IFRS 16
  • Strong cash conversion of 98% and ongoing investment for growth
  • UK pension scheme triennial valuation completed - fully funded on an actuarial basis 
  • Full year dividend up 8% to 7.0p

 

£ million unless otherwise stated

Underlying1

Statutory

 

2019

2018*

Change

Change
constant fx

2019

2018*

Continuing Operations

           

Revenue

478.2

429.5

11%

9%

478.2

429.5

Operating profit

40.0

33.4

20%

17%

18.8

16.5

Operating profit margin (%)

8.4%

7.8%

60bps

60bps

 

 

Profit before tax

36.3

31.5

15%

12%

15.1

14.6

Earnings per share (pence)

18.7p

16.2p

15%

13%

8.5p

8.0p

Return on invested capital2

11.3%

11.5%

       

Cash conversion3

98%

88%

       

Total Operations

           
Earnings per share (pence)         10.6p

8.3p

Free cash flow4

       

9.7

8.5

Net debt 

       

(69.1)

(41.7)

Net debt exc. IFRS 16          (51.5)  

Net debt to EBITDA5

 

 

 

 

0.9x

0.9x

Dividend per share (pence)

       

7.0p

6.5p

*FY2018 not re-stated for IFRS 16 impacts

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. Excluding IFRS16, ROIC is 11.6%, up 10 bps

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 and leases less interest paid. Please see note 7 for more information

5. Net debt at average exchange rates excluding leases previously recognised as operating leases divided by underlying operating profit excluding the impact of IFRS 16. including full-year pro-forma effect for acquisitions. Measure used for our banking covenants