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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 

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
  1. 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 announcementThe adjusted measures used are set out in the ‘Reconciliation of KPIs and non IFRS measures’ section in the announcement.
  2. 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.