Full Year 2024 TT electronics PLC Earnings Call Transcript
Key Points
- TT Electronics PLC (STU:7TT) reported excellent performance in Europe and Asia, with significant margin improvements driven by operational efficiency.
- The company achieved a 9% organic increase in order intake over 2023, with a positive book-to-bill ratio of 103%.
- Strong cash flow generation was highlighted, with a cash conversion rate of 117% and a GBP13 million reduction in inventory.
- The pension scheme issue was significantly addressed, resulting in a GBP11 million net pension surplus refund.
- Project Dynamo has been successful in driving operational efficiency, growth, and innovation across the company.
- TT Electronics PLC (STU:7TT) faced significant challenges in North America, with destocking in the components market leading to volume and revenue shortfalls.
- Operational issues in Kansas and Cleveland negatively impacted results, leading to noncash goodwill and asset write-down costs of GBP52.2 million.
- The company experienced a 13% decline in revenue on a constant currency basis, with a 17% decline in adjusted operating profit.
- The Board decided to pause the final dividend for 2024 due to macroeconomic uncertainty and associated business risks.
- The company does not expect revenue growth in North America in 2025, partly due to the deferral of some revenues into 2026.
All right. Well, good morning, everyone, and thank you for being here at short notice, and thank you for being on the webcast if you're listening live or on record. I have to say it's been quite a long year and a short night, but we are now here. So I'd like to just start by acknowledging that 2024 was a difficult year for TT. Notwithstanding that, actually, there were lots of positive spots.
We had excellent performance in Europe, excellent performance in Asia. Our cash flow has really stepped up and helped our balance sheet. And we've completed what I think are very close to the final steps in sealing off and closing down and taking the risk out of our pension scheme, and there's been many other achievements as well.
On the other hand, we've had plenty of challenges and a few opportunities to exploit. I'd like to thank Peter France for all of his contribution in 2024 and before. I'd like to thank the leadership team, and I'd like to thank everyone in TT for navigating those challenges and delivering
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