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2020 Half Year Results 

“Our people have responded exceptionally well to the challenges presented by COVID-19.  The improvements we have made, positioning the business in higher technology, structural growth markets and delivering essential products to our customers, have allowed us to navigate the impact more effectively.  Given the extent of the disruption around the world, the trading performance of the business in the period has been resilient, and we have retained a robust balance sheet.  All our manufacturing sites are open and gradually returning to full capacity.  

Our current expectation is that we will see improvement in the second half.  There remains a range of possible outcomes for the year and, in light of this, our intention is to recommend a dividend at the 2020 year-end results announcement taking account of our performance for the year as a whole.  

We have taken significant actions to improve TT’s long-term profitability and we will continue to create value through organic investment and acquisitions.  The business is positioned in markets which will benefit from structural growth trends and where sustainability is driving further opportunities.  This gives us confidence in the long-term future of the business.”
 

Richard Tyson, Chief Executive Officer

August 2020

 


Half year 2020 results - Key summary

  • As a result of actions taken, TT entered the pandemic well placed to withstand its impact and emerge strongly
  • Decisive and well executed response to COVID-19
    • Operational throughout due to actions and essential nature of products
    • Employees protected, costs reduced, cash spend minimised
    • Gradual recovery in organic revenue through the second quarter, after April low point; all sites now open and capacity improving
  • Actively progressing strategy execution
    • Significant self-help programme extended and underway, with expected 2023 run-rate benefits of £11-12 million
    • Continued R&D investment at 5.0 per cent (2019: 5.4 per cent) of revenue1 for future growth
  • Confidence in medium-term outlook and continuing to improve the quality of TT
    • Robust balance sheet with substantial covenant and liquidity headroom
    • Organic revenue growth and margin enhancement
    • Disciplined M&A

 

£ million (unless otherwise stated)

Underlying1

Statutory

 

H1 2020

H1 2019

Change

Change
constant fx1

H1 2020

H1 2019

Continuing Operations

           

Revenue

210.0

238.2

(12)%

(12)%

210.0

238.2

Operating profit/(loss)

11.4

19.2

(41)%

(41)%

(2.9)

6.9

Operating profit margin (%)

5.4%

8.1%

(270)bps

(270)bps

(1.4)%

2.9%

Profit/(loss) before taxation

9.5

17.4

(45)%

(46)%

(4.8)

5.1

Earnings/(loss) per share (pence)

4.8p

8.8p

(45)%

(47)%

(2.7)p

3.3p

Inerim dividend per share (pence)

        - 2.1p

Return on invested capital1

9.0%

11.3%

       

Cash conversion1

61%

28%

       

 

        H1 2020 H1 2019

Free cash flow

       

(5.2)

(9.2)

Net debt 

       

(89.0)

(69.1)

Net debt/underlying EBITDA1         1.6x 0.9x

1. The Directors have adopted a number of alternative performance measures to provide additional information on the underlying trends, performance and position of the Group. Further details are set out on page 35 of the full results announcement.  The adjusted measures used are set out in the glossary on pages 41 to 49 of the full results announcement.