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Full year 2021 results 

“I’m really pleased with our strong organic growth in 2021, with revenue and adjusted run rate margins back to pre-pandemic levels. Significant increases in profits and EPS reflect the benefits of this growth, combined with our self-help initiatives, the successful integration of Torotel and excellent execution by the team.  Our strategy is delivering, and we continue to invest for our future.

We continue to enhance the quality of our businesses and are making tangible progress towards double-digit adjusted operating margins. We have started 2022 with a record order book, which gives us the confidence and the visibility to achieve our growth plans for the year whilst continuing to manage the ongoing cost and supply chain challenges in partnership with our customers.

As a result, we are confident that TT’s momentum will continue, with the outlook for financial performance in 2022 in line with management expectations, although we are mindful of increased geopolitical uncertainty. With good customer wins, strength in our target markets, and the commercial aerospace recovery still to come, we believe the Group is in a strong position for the future.”

Richard Tyson, Chief Executive Officer

March 2022

 


Full year 2021 results 

Strong performance and record order book into 2022

 

Financial Highlights  

  • Revenue and adjusted run-rate margin back to pre-COVID-19 levels
    • Full year revenue up 14% year-on-year at constant currency
    • Organic revenue growth of 10%
    • Adjusted operating margin up 90bps to 7.3%, run rate of 8.1% excluding Virolens costs
  • Adjusted operating profit up 31% reflecting benefits of growth and self-help actions
  • Statutory operating profit increased to £19.3m, statutory basic EPS of 7.3p
  • Balance sheet strength maintained while investing to support future growth, margin enhancement and to manage supply chain constraints
  • Record order book into 2022 with increased visibility into H2 (2021 book to bill of 137%), including GMS fully booked
  • Total dividend increase of 19% to 5.6p, reflecting strong performance and positive outlook

Operational Highlights

  • Pricing and operational improvements, including self-help programme, offsetting cost headwinds
  • New commitment to deliver a 50% reduction in Scope 1&2 emissions by end of 20232, Net Zero Scope 1&2 by 2035. 25% tCO2e reduction over last year
  • Strong levels of employee engagement evidenced by results of our most recent survey3
  • Torotel integrated ahead of plan and pipeline building
  • Margin enhancing Ferranti acquisition in January 2022 expands technical capabilities

 

£ million (unless otherwise stated)

Adjusted Results1

Statutory Results

 

2021

2020 

Change

Change
constant fx

2021

2020

Revenue

476.2

431.8

10%

14%

476.2

431.8

Operating profit

34.8

27.5

27%

31%

19.3

6.6

Operating profit margin 

7.3%

6.4%

90bps

100bps

4.1%

1.5%

Profit before taxation

31.5

23.8

32%

36%

16.0

2.9

Earnings per share 

14.5p

11.7p

24%

28%

7.3p

0.8p

Return on invested capital

9.1%

7.7%

       

Cash conversion

65%

130%

       

 

        2021 2020

Free cash flow1

       

(1.3)

14.4

Net debt1

       

102.5

83.9

Leverage1

        1.7x 1.6x
Dividend per share         5.6p 4.7p
  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. Against our 2019 baseline. We have improved the precision of our 2019-2021 Scope 1&2 carbon emissions data by using regional emissions factors rather than an emissions factor for the UK. This has led to a change in the data disclosed in 2019 and 2020.
  3. Best Companies Ltd survey in which we maintained our excellent 2* rating