(Alliance News) - TT Electronics PLC reported a "strong" annual performance on Wednesday, though it has warned on a knock to 2020 profit due to coronavirus.
Shares were up 5.2% on Wednesday morning in London at a price of 201.00 pence each.
Revenue for 2019 was GBP478.2 million, 11% higher than the year before. Organic revenue growth was 4%.
TT's pretax profit climbed by 3.4% to GBP15.1 million, while underlying pretax profit was 15% higher at GBP36.3 million.
Woking-headquartered TT is paying a final dividend of 4.9p per share. This means a 2019 total payout of 7.0p per share, up 8% from the 6.5p paid a year earlier.
"Our performance in 2019 is the latest evidence of the significant business transformation we have achieved over the last five years. 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," said Chief Executive Richard Tyson.
The Power & Connectivity division performed "strongly", achieving 20% revenue growth to GBP138.2 million. Organic revenue growth was 2%, driven by customers in the aerospace, defence and medical industries.
Global Manufacturing unit revenue climbed 17% to GBP213.2 million, and organic growth was 12% in a "very strong" performance.
Sensors & Specialist Components revenue was down 4%, however, to GBP126.8 million, and fell 7% organically. This was due to soft market conditions and inventory de-stocking.
Turning to the coronavirus outbreak, TT has two manufacturing facilities in China, in Suzhou and Dongguan, as well as two smaller support facilities in Shenzhen and Hong Kong. These combined make up around 25% of TT's revenue.
TT had to curtail operations in Suzhou and Dongguan for a period of time, though Suzhou was allowed to stay open at 20% capacity to provide parts for critical medical equipment.
"The duration and impact of this issue on our business is uncertain, however, based on slower than normal capacity ramp-up in both our own operations and the supply chain, lost or delayed sales and cost base inefficiencies we currently anticipate that it could impact underlying operating profit by up to GBP3 million," said TT.
"The possible impact of an extended supply chain disruption is uncertain. We currently expect the impact of these events to be restricted to 2020."
By George Collard; georgecollard@alliancenews.com
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Tt Electronics (TTG)