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TT Electronics PLC on Thursday reported a dip in revenue but an uptick in adjusted profit for 2023 after securing several ‘significant contract wins’. TT is a Woking, England-based electronic component manufacturer. Shares in the company were up 5.1% at 146.86 pence each in London on Thursday afternoon. Statutory pretax loss narrowed to £1.1 million in 2023 from £10.1 million the year before, which TT credited to the successful conversion of its strong 2023 order book and a strong recovery in its Power & Connectivity business. On an adjusted basis, profit rose 6.4% to £43.0 million from £40.4 million a year ago. Meanwhile, revenue dipped by 0.5% to £613.9 million from £617.0 million in 2022. Losses per share were down 48% to 3.9 pence from 7.5p. The firm secured 37 ‘significant contract wins’ in 2023, which it expects to deliver around £250 million in revenue over the contracts’ lifetimes. These included a new healthcare customer at the company’s Cleveland facility, which TT will support in meeting US Food & Drug Administration regulatory requirements, and a contract for printed circuit board assemblies at its Kuantan site in Malaysia. Given its strong performance, the company has proposed a final dividend of 4.65p per share, up 8.1% from 2022’s final payment of 4.30p. This brings TT’s total 2023 payout to 6.80p, up 7.9% from 6.30p in 2022. Looking ahead, TT said that its order book visibility remains above historic, pre-Covid levels, with total orders at December 31 representing around 11 months worth of revenues. TT also said that it was on track to deliver a 10% operating margin in 2024, above 2023’s margin of 8.9%. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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