TT delivers strong performance with another year of revenue growth

Despite mixed market conditions, TT managed to deliver revenue growth, profit improvements as well as margin enhancement. The group managed to record revenues of GBP 478.2 million during 2019, which is an 11% increase from GBP 429.5 million. Operating profit ended up at GBP 40.0 million for the full year 2019, compared to GBP 33.4 million during 2018. Operating profit margin improved to 8.4% during the year, compared to 7.8% for the previous period. TT saw good growth from our aerospace, defence and medical customers and revenues from these customers grew 22% organically, now representing 47% of the company’s business. “We have delivered a strong performance with another year of good revenue growth, double-digit profit improvement and further margin enhancement despite the macro challenges in some of our markets,” says CEO Richard Tyson in the company’s fiscal report. The group's profit improvement was largely driven by the Power and Connectivity and Global Manufacturing Solutions divisions which more than offset the impact of softer markets in the primarily industrial facing Sensors and Specialist Components division. The synergy actions arising from the 2018 acquisition of Stadium have now been completed with further run rate benefits expected in 2020. “We are well placed to make progress in 2020 and beyond. However, the duration and impact of the coronavirus remains uncertain, and based on the current situation we anticipate that it could impact underlying operating profit by up to GBP 3 million in 2020. We are focused on making further strategic progress, and our new self-help programme underpins the journey to double-digit margins,” Tyson concludes.