- The London-listed manufacturer needs more time to finalise the audit
- TT Electronics also warned of a non-cash impairment of up to £35m
TT Electronics shares slumped on Tuesday after the group was forced to delay its annual results in the wake of a large massive financial hit to its North American arm.
The London-listed manufacturer plans to delay publishing its 2024 results for up to a fortnight because more time was needed to finalise the audit.
Following the audit’s completion, it anticipates reporting adjusted operating profits at the bottom end of its £37million to £42million guidance range.
The business warned of a non-cash impairment of up to £35million due to subdued demand for components and ‘operational execution challenges’ in North America.
TT also revealed a further £6million adjustment to prior year results with respect to its Cleveland site, where it designs and makes products for industries such as defence, aerospace, and healthcare.
It is undertaking an improvement plan for the location but said the benefits will ‘take longer to realise than originally anticipated’.
Hold-up: TT Electronics plans to delay publishing its 2024 results for up to a fortnight because more time was needed to finalise the audit
Shares in the Woking-based company plummeted up to 16 per cent in early trading before recovering to trade 3.1 per cent down at 81.4p by the late afternoon.
Five months ago, TT warned its North American division was suffering higher than expected production costs and taking longer than predicted to fulfil orders.
While the group said it was making efforts to rectify these issues, including altering the layout of its factories, it did not believe the measures would ‘sufficiently mitigate’ headwinds in 2024.
Founded as a toolmaker called Tyzack Sons & Turner in 1867, TT Electronics makes components for firms, including aerospace giants BAE Systems and Lockheed Martin.
From the former business, it has a contract to develop a DC-DC converter – an electronic circuit – as part of the flight control system for the Tempest fighter aircraft, which is due to enter service in 2035.
TT also gained a multi-million-pound deal with BAE last year to design and produce cable assemblies for the Challenger 3 tank programme.
Electronic cables maker Volex, whose chairman is financier Nat Rothschild, put forward two takeover bids for TT last year, with the second proposal valuing the group at £249million.
Its approach followed TT Electronics shares plunging to their lowest level in a decade, which Rothschild blamed on ‘inconsistent annual results’ and ‘very disappointing outcomes’ from the firm’s acquisition strategy.
However, Volex walked away after TT rejected its £249million offer, claiming the price was too low and undervalued its future prospects.
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