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Highlights

  • FY2024 revenue down 2% (constant currency), with robust gains in Europe and Asia offset by North America’s decline

  • £23.5m statutory operating loss driven by £52.2m write-down in North American operations

  • Project Dynamo targets £17m in cost and margin benefits by 2026, with key efficiency initiatives underway

TT Electronics plc (LSE:TTG) reported its financial results for the year ended 31 December 2024, revealing mixed regional performance and an operational loss driven by market headwinds in North America.

At constant currency, group revenue declined 2%, or 5% organically, largely due to a slowdown in the North American components market. This offset gains seen in both Europe and Asia. Adjusted operating profit fell by 17% to £37.1 million, though cost-saving actions helped mitigate some of the impact. Excluding the divestment of Project Albert, adjusted operating profit was £37.3 million.

Margins told a similar regional story. Europe delivered a significant improvement, with adjusted operating margins up 580 basis points to 12.9%, while Asia saw a 400 bps rise to 15.0%. However, these gains were dampened by weaker performance in North America.

On a statutory basis, the company recorded an operating loss of £23.5 million, largely due to a £52.2 million impairment of goodwill and fixed assets in North America. Statutory basic EPS fell to negative 30.2p.

Despite the earnings decline, cash flow remained resilient. Free cash flow reached £27.7 million, enabling a reduction in net debt and maintaining leverage at 1.8x—comfortably within TT’s target range of 1–2x. Cash conversion stood at a healthy 117%, and the company reported an £11.2 million UK pension surplus post-tax, which is moving toward final buy-out.

Strategic Progress Through Project Dynamo

The Group has launched "Project Dynamo," an operational improvement initiative targeting £17 million in cost savings and margin enhancements by 2026. This includes eight key workstreams focused on boosting productivity and addressing performance gaps, particularly in the underperforming North American sites. Reinvestment of £4 million is planned to support execution. Inventory management efforts delivered £13 million in savings during 2024, with a further £15 million reduction targeted by 2026.

Outlook

Looking ahead, the company acknowledged growing uncertainty driven by new trade tariffs and global economic volatility, which could impact demand. While the business expects to remain compliant with financial covenants even under downside scenarios, extreme macroeconomic pressures could pose risks to its going concern status in rare cases.

Reflecting this cautious tone, the Board issued a broad guidance range for 2025, with adjusted operating profit projected between £32 million and £40 million. The company remains focused on its operational roadmap under Project Dynamo, aiming to restore stability and improve performance across all regions.