Electronics Production |
TT electronics post loss in H1
During the half year report for the six months TT electronics revenue was down 19% to £237.0 million (2008: £292.0 million).
Excluding the impact of foreign exchange, Group revenue was down 29%, reflecting the severe economic downturn. Loss before tax and exceptional items was £3.9 million (2008: profit of £15.0 million).
Significant reduction in working capital of £13.1 million and full year target revised upwards. Underlying operating cash flow improved by 19% to £28.4 million (2008: £23.9 million).
Net debt reduced to £100.0 million (December 2008: £113.2 million) and the Group continues to trade comfortably within its banking facilities and covenants.
Accelerated cost reduction programme already yielding benefits. Despite reduced volumes, the Group has traded profitably since May.
Good progress in implementing initiatives identified in the Strategic Review with the new divisional structure and leadership enabling clear focus on delivery and accountability. Overall trading for the full year expected to remain in line with previous expectations.
