TT Electronics has reported a decline in revenues amid persistent difficulties in one of its core markets, as it pushes forward with a boardroom shake-up following the collapse of a £287 million takeover bid.
Sales Drop Amid Market Uncertainty
The British manufacturer revealed that group sales dropped 4.8% in the four months to the end of April, with the fall driven by challenging conditions in the electronics manufacturing services market. The company attributed this to customer hesitancy stemming from broader uncertainty across the global economy.
The update comes as the group's incoming chairman, Phil Swash, is due to take charge of the board on Friday at the firm's annual general meeting, as part of a wider leadership overhaul.
Failed Takeover Bid
London-listed TT Electronics saw a proposed £287 million acquisition by Swiss electronics group Cicor Technologies unravel earlier this year after shareholders rejected the deal. TT chairman Warren Tucker announced his intention to step down following two three-year terms in the position, while its chief financial officer and two non-executive directors are also departing.
Ian Ashton is set to join TT on June 29 to succeed outgoing chief financial officer Richard Webb, who will remain in post until Mr Ashton's arrival to ensure a smooth transition.
Complications with DBay Advisors
The troubled takeover was dogged by complications, with DBay Advisors — which holds nearly a quarter of TT Electronics shares — having previously attempted to intervene with a rival bid. DBay subsequently withdrew its interest but confirmed it would nonetheless vote against the Cicor deal.
TT Electronics announced in October that it had agreed a 155p-a-share takeover by Cicor. However, shortly afterwards, asset management firm DBay declared it would vote against the deal, stating it was "happy with the progress" TT Electronics was making.
Woking-based TT Electronics hit back at DBay, alleging it had a "different agenda" behind its decision to oppose the sale, revealing that DBay had made three separate takeover approaches for the business over the preceding three months.
Company Operations and Challenges
TT Electronics designs and manufactures products serving industries ranging from healthcare to aerospace, counting major clients such as BAE Systems and Thales among its customer base. The firm, which operates factories across the UK, North America and Asia, suffered the abrupt exit of former chief executive Peter France in April, and also cautioned over the potential impact of US tariffs on its bottom line, warning at the time that this risked threatening its ability to continue trading.
The company had previously flagged challenges within its US division, citing weakening demand for its components alongside persistent production difficulties at its manufacturing sites.
Financial Performance and Outlook
Full-year results published in March revealed widened pre-tax losses of £36.7 million, compared with losses of £33.4 million the prior year. On an underlying basis, operating profits edged up 2.2% to £37.2 million, though revenues slipped 2.7%.
The business has since launched a cost-reduction programme, which it expects to deliver net benefits of £3 million in 2026. The group stated it remains on course to deliver underlying earnings of between £32.6 million and £38.5 million across the group in 2026.
Eric Lakin, chief executive of TT Electronics, said: "We are making good progress against our strategic priorities and the business is in a meaningfully stronger position than it was a year ago. While we are mindful of near-term uncertainty in some end markets, we are encouraged by the continued strength in aerospace and defence and the progress we are making operationally."
TT Electronics has sites across the UK, including at Bedlington in Northumberland, Abercynon in South Wales, Barnstaple in Devon and Fairford in Gloucestershire, as well as in Nottingham, Manchester and Sheffield.
