HALF YEAR RESULTS

2022

HALF YEAR 2022 RESULTS

© TT Electronics 1

STRONG GROWTH AND MOMENTUM

FULL YEAR OUTLOOK UNCHANGED

  • Revenue increase reflects successful positioning in structural growth markets
  • Book to bill of 144% with order book more than double pre-pandemic levels and up 55% versus prior year
  • 23 new significant contract wins in the half delivering over £60m of multi-year revenues
  • Pricing action offsetting inflationary pressures
  • Continued progress on ESG initiatives
  • Cash spend on self help programme will complete in 2022 - benefits underpin margin improvement
  • Clear line of sight to achieve our unchanged full year expectations, through growth, pricing and self-help

HALF YEAR 2022 RESULTS

© TT Electronics 2

FINANCIAL REVIEW

MARK HOAD, CFO

© TT Electronics 3

GROUP FINANCIAL PERFORMANCE

£m (except where stated)

HY 22

HY 21

Change

constant fx

Revenue

269.2

235.6

10%

Operating profit*

18.3

15.9

5%

Operating profit margin*

6.8%

6.7%

(30)bps

Profit before tax*

15.0

14.1

(3)%

EPS* (pence)

6.6p

6.5p

(8)%

Free cash flow

(23.5)

(10.3)

Net debt/EBITDA†

2.4x

1.7x‡

ROIC (%)

8.9%

9.1%‡

(20)bps

Dividend (pence)

2.0p

1.8p

HALF YEAR 2022 RESULTS

  • 8% organic revenue growth - c. 2/3 pricing/pass through, 1/3 volume
  • Operating profit up 5% on constant currency basis
  • Adjusted operating margin of 6.8%
  • EPS down 8% at constant currency - higher interest expense and tax charge
  • Free cash flow reflects working capital increase - investment to support order book and also impacted by supply chain delays
  • Focus on H2 improvement - net debt to adjusted EBITDA expected to be within our 1-2x target range at year-end
  • HY dividend up 11% to 2.0p, reflecting positive outlook
  • Adjusted, before exceptional costs
  • Net debt/adjusted EBITDA calculated as per bank covenant - pre-IFRS 16, proforma for acquisitions
    ‡ FY 2021

© TT Electronics 4

TEMPORARY HEADWINDS TO OPERATING MARGIN

▪ Ferranti delivering high-teen margins ▪ Dilutive impact of pass-through in GMS

▪ Benefits of growth offset by Covid and supply chain issues

▪ Continuing to realise benefits from self-help programme

▪ Adding back discretionary costs as planned ▪ Adjusted operating margin of 6.8%

▪ H2 recovery anticipated ▪ Higher revenue

▪ Agreed price increases ▪ Benefits of self-help

HALF YEAR 2022 RESULTS

© TT Electronics 5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

TT Electronics plc published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 07:26:07 UTC.