Sparks

TT Electronics’ group revenue for July to October was 1% lower organically, excluding the unwind of pass-through revenue (Europe +10%, Asia +11%, North America -16%). Order intake in the period was 2% higher than the previous year on an organic constant currency basis. North America was affected by softer demand including destocking, along with the operational issues identified at two sites in the last trading update. The company is taking operationally based actions, bringing in expert resources. The aim is to improve product flow and efficiency, reduce scrap and rework, with margins expected to improve from 2025.

As continued subdued demand in the North American components market and the operational improvement plans will only benefit financial results from 2025, guidance is now towards the lower end of the previous £37-42m guidance, with leverage marginally above 1-2x previously. With current operational actions including Project Dynamo and a recovery in the components market, management still expects to achieve a 12% operating margin by 2026. The board has announced that CFO Mark Hoad has decided to leave the company.