TT Electronics (TTG)

Sector:

Electronic and Electrical Equipment

Index:

FTSE Small Cap

158.60p
   
  • Change Today:
      1.60p
  • 52 Week High: 201.00
  • 52 Week Low: 135.20
  • Currency: UK Pounds
  • Shares Issued: 177.46m
  • Volume: 296,658
  • Market Cap: £281.45m
  • RiskGrade: 186

TT Electronics de-risks pension scheme, shares spark

By Abigail Townsend

Date: Monday 21 Nov 2022

LONDON (ShareCast) - (Sharecast News) - TT Electronics has completed a buy-in of all its UK defined benefit pension liabilities, the components manufacturer confirmed on Monday, sending its shares higher.
The firm said the scheme's trustees had purchased a bulk annuity insurance policy from Legal and General Assurance Society, which matches the scheme's £400m of liabilities and covers all future liabilities.

As a result, TT now no longer bears any investment, longevity, interest rate or inflation risk in regards to the scheme, which has around 5,000 members.

The deal has also provided the manufacturer, which specialises in the healthcare, aerospace and defence, and automation and electrification sectors, with an "immediate" cash flow benefit of £6m.

As at 1030 GMT, shares in the firm were ahead 9% at 157.5p.

Mark Hoad, chief financial officer, said it was an "excellent outcome" for members of the scheme as well as the company and shareholders.

He continued: "We have worked hand-in-hand with the scheme's trustees over the last few years to reach this position. Those efforts... mean the scheme can now be fully de-risked."

Harry Philips, analyst at Peel Hunt, said: "We see this as a significant step forward. It frees up cash...[and] chips away at debt, which we estimate will end 2022 at £118m.

"Secondly, the stock's investment proposition takes a significant step forward. Despite running a surplus for the last couple of years, the debate has looked at the future liabilities and the cash going out - this goes back more than 20 years. This has been lifted, which should allow the earnings profit of the company stand out more clearly."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

TT Electronics Market Data

Currency UK Pounds
Share Price 158.60p
Change Today 1.60p
% Change 1.02 %
52 Week High 201.00
52 Week Low 135.20
Volume 296,658
Shares Issued 177.46m
Market Cap £281.45m
RiskGrade 186

TT Electronics Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
93.92% above the market average93.92% above the market average93.92% above the market average93.92% above the market average93.92% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
32.91% below the market average32.91% below the market average32.91% below the market average32.91% below the market average32.91% below the market average
2.56% below the sector average2.56% below the sector average2.56% below the sector average2.56% below the sector average2.56% below the sector average
Income
73.77% above the market average73.77% above the market average73.77% above the market average73.77% above the market average73.77% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
20.34% below the market average20.34% below the market average20.34% below the market average20.34% below the market average20.34% below the market average
11.76% below the sector average11.76% below the sector average11.76% below the sector average11.76% below the sector average11.76% below the sector average

What The Brokers Say

Strong Buy 3
Buy 3
Neutral 2
Sell 0
Strong Sell 0
Total 8
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

TT Electronics Dividends

  Latest Previous
  Final Interim
Ex-Div 11-Apr-24 14-Sep-23
Paid 15-May-24 12-Oct-23
Amount 4.65p 2.15p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 34,218 @ 158.60p
16:35 315 @ 158.60p
16:35 348 @ 158.60p
16:35 3,420 @ 158.60p
16:35 43 @ 158.60p

TT Electronics Key Personnel

CFO Mark Hoad
Chair Warren Tucker

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