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2019 Half Year Results 

 

“We have delivered strong revenue and profit growth alongside further margin progression in the first half despite a tougher market backdrop.

The evolution of TT into a higher quality, better balanced Group reflects our strategic focus on picking the right customers in the right markets and investing in the right capabilities. The actions we have taken to concentrate on sensing, power and connectivity solutions across aerospace and defence and medical, whilst refining our portfolio of businesses through acquisitions and disposals have transformed TT. 

We believe our strategy to position TT to benefit from “electronics everywhere” will continue to strengthen the Group. Despite the current macroeconomic environment, our first half performance and order momentum position us well to make further progress in 2019 and beyond.”

 

Richard Tyson, Chief Executive Officer
August 2019


Half year 2019 results - Key summary

 

Financial Headlines

  • 20% revenue growth; up 8% organically
  • Underlying operating profit up 27% at constant currency
  • Underlying operating margins up by 50 basis points to 8.1%
  • ROIC of 11.3%; up 20 basis points to 11.7% excluding the impact of IFRS 16
  • Dividend increased by 8% to 2.1p

Strategic Progress

  • Business quality enhanced through continued focus on the right markets, capabilities and customers
  • New customer wins, growth with existing customers and increased cross-selling opportunities
  • Secured significant customer wins for recurring multi-million pound revenues
  • Aerospace and defence and medical grew 37% (27% organically); now 45% of revenues
  • Operational efficiency improvements from footprint action underway

 

£ million unless otherwise stated

Underlying1

Statutory

 

H1
2019

H1
2018

Change

Change
constant fx2

H1

2019

H1

2018

Continuing Operations

           

Revenue

238.2

194.2

23%

20%

238.2

194.2

Operating profit

19.2

14.6

32%

27%

6.9

7.7

Operating profit margin

8.1%

7.5%

60bps

50bps

2.9%

4.0%

Profit before taxation

17.4

14.0

24%

20%

5.1

7.1

Earnings per share (pence)

8.8p

6.9p

28%

22%

3.3p

4.4p

Return on invested capital3,4

11.3%

11.5%

       

Cash conversion5

28%

105%

       

Free cash flow6

       

(9.2)

4.1

Net debt4 

       

(82.4)

(41.7)

Net debt to EBITDA4,7

 

 

 

 

1.2x

0.8x

Dividend per share (pence)

       

2.1p

1.95p

Total Operations: Earnings per share (pence)

       

3.9p

4.4p

 

1. Excluding the effect of restructuring and acquisition and disposal related items

2. Change at constant currency calculated by comparing current year actual results to the prior year results retranslated at current year actual exchange rates

3. Rolling 12 month underlying operating profit return on average invested capital

4. Return on invested capital, net debt and net debt to EBITDA for full year 2018

5. Underlying operating cash flow (underlying EBITDA less net capital expenditure, capitalised development expenditure, working capital and non-cash movements) divided by underlying operating profit

6. Net cash flow from operating activities less net cash flow from investing activities less interest paid less repayment of IFRS 16 leases

7. Net Debt 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.