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TT Electronics PLC on Wednesday said it expects profit for 2023 to be at the lower end of a market consensus range, despite saying it continues to show ‘good’ year-on-year trading improvement.
The electronic components maker is expected to achieve adjusted pretax profit in the range of £43.1 million to £46.0 million, according to analyst consensus, growth from £40.4 million in 2022.
In the four months that ended October 2023, TT Electronics said trading continued to be good, also noting year-to-date organic revenue growth of 4%.
TT Electronics said it is returning to a more normal first half to second half weighting of revenue, with sales in the four months to October reducing by 8% organically, or 5% reduction excluding pass through, against a ‘strong’ 2022 comparator.
‘As anticipated, we have seen order intake normalisation during the second half as lead times have reduced, however, order visibility across the group remains above historic levels,’ the company said.
‘Trading in Sensors and Specialist Components has been in line with our expectations other than the one-off impact of the previously highlighted machinery breakdown experienced in one of our facilities, which continued for longer than anticipated, impacting profit in [the third quarter] by [around] £2 million,’ it added.
TT Electronics said it remains on track to deliver much improved cash generation over last year and a further reduction in leverage.
‘We are mindful of the wider macroeconomic backdrop, but see continued positive momentum in the business, with a robust order book providing good visibility of revenues for 2024,’ the company said.
Shares in TT Electronics were down 6.3% to 151.50 pence each in London on Wednesday morning.
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