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2020 Full Year Results

“We started 2020 with good momentum prior to the COVID-19 outbreak which most impacted our trading performance in the second quarter. Since then our performance has been on a recovering trend, which has strengthened in the fourth quarter of the year. This trend has continued into 2021 on the back of an increasing order intake across all divisions.

We believe that many of the positive, structural trends in our markets will accelerate as a result of the longer-term impacts on society from COVID-19. We see this in a number of areas, but especially in increasing demand for improved healthcare and an acceleration of digital transformation and connectivity. These factors, combined with the steps we have taken to enhance the quality of our businesses, our self-help programme and our record order book position us well for 2021 and give us confidence in an exciting future for TT.”

Richard Tyson, Chief Executive Officer

March 2021

Full Year 2020 Results Webcast

Key Information

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Full year 2020 results

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Full year 2020 presentation

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Full year 2020 investor factsheet

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Full year 2020 Executive Insight video

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2020 Annual report

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Full year 2020 group income statement

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Full year 2020 group balance sheet

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Full year 2020 group cash flow statement

Financial Highlights

Recovery well underway, strengthening in Q4 with increasing order intake and improved production capacity, after Q2 COVID-19 impact
£60 million investment in R&D and acquisitions; Torotel largely integrated, performing well and bringing exciting business opportunities
Benefiting from structural growth drivers associated with sustainability, supplying products for a cleaner, smarter and healthier world
ESG credentials recognised through an improved ‘AA’ rating in MSCI ESG assessment
Self-help programme on-track; yielding £2 million benefits in 2020, a further £5 million in 2021 and £11-12 million full run-rate in 2023
Full year revenue down 9% year-on-year at constant currency after COVID-19 impact; improving trend in H2
Strong free cash flow of £14.4 million, aided by £3.6 million working capital inflow
Resumption of dividend payments, reflecting good recovery and positive outlook

Outlook

Improving business performance and clear path to double-digit margins, supported by self-help actions
Good trading momentum in 2021 underpinned by record order book
Revenue in the five months from October 2020 to February 2021 flat organically versus prior year
Positive structural trends in markets expected to accelerate as a result of COVID-19 impacts

£ million (unless otherwise stated)	Adjusted¹				Statutory
	2020	2019 (restated)²	Change	Change constant fx	2020	2019 (restated)²
Revenue	431.8	478.2	(10)%	(9)%	431.8	478.2
Operating profit	27.5	38.1	(28)%	(27)%	6.6	16.9
Operating profit margin	6.4%	8.0%	(160)bps	(150)bps	1.5%	3.5%
Profit before taxation	23.8	34.4	(31)%	(30)%	2.9	13.2
Earnings per share	11.7p	17.8p	(34)%	(34)%	0.8p	7.6p
Dividend per share					4.7p	2.1p
Return on invested capital	7.7%	10.8%
Cash conversion	130%	103%
					2020	2019
Free cash flow¹					14.4	9.7
Net debt¹					83.9	69.1
Leverage¹					1.6x	1.0x

Throughout the announcement we refer to a number of alternative performance measures which provide additional useful information. The Directors have adopted these measures to provide additional information on the underlying trends, performance and position of the Group with further details found in the results announcement. The adjusted measures used are set out in the ‘Reconciliation of KPIs and non IFRS measures’ section in the announcement.
The results for the year ended 31 December 2019 have been restated to reflect prior year adjustments. Further details are set out in note 2 in the results announcement.