TT Electronics upgrades FY profit expectations, shares rally

23rd Feb 2023 13:31

(Sharecast News) - TT Electronics rallied on Thursday as it upgraded full-year profit expectations after its global manufacturing solutions (GMS) business outperformed.

In a brief update, the company said adjusted pre-tax profit was set to be at or around the top end of the range of consensus expectations of £36.5m to £39.4m.

It said group revenue growth in the final two months of the year remained strong, with organic growth of 20% reflecting the company's "successful positioning in structural growth markets and new project and customer wins".

TT also said that leverage has reduced back into its 1-2 times target range as expected.

"We enter 2023 with good momentum, underpinned by a strong order book and will provide a full update with our annual results presentation on 8 March," the company said.

Broker Numis, which rates the shares at 'buy', said the new profit guidance is "comfortably ahead of our estimate of £37.0m, implying an upgrade of circa 7% (EPS 16.3p to 17.4p)".

At 1330 GMT, the shares were up 8.4% at 196.15p.