TT Electronics has revealed a drop in sales due to ongoing woes in one of its key markets as it presses ahead with an overhaul of its board in the wake of a collapsed £287 million takeover.
The British manufacturer said group sales fell 4.8% in the four months to the end of April, driven by trading troubles in the electronics manufacturing services market, which it said was suffering from customer caution due to wider uncertainty in the global economy.
It comes as the group’s new chairman, Phil Swash, is set to take the helm of the board on Friday at the firm’s annual general meeting for shareholders as part of a boardroom overhaul.
London-listed TT Electronics saw a proposed £287 million takeover by Swiss electronics group Cicor Technologies fall apart earlier this year after shareholders voted against the deal.
TT chairman Warren Tucker confirmed plans to step down after serving two three-year terms in the role, while its chief financial officer and two non-executive directors are also standing down.
Ian Ashton will join TT on June 29 to replace outgoing chief financial officer, Richard Webb, who will remain in the post until after Mr Ashton joins to help with a smooth handover.
The ill-fated takeover was beset by problems, with DBay Advisors, which owns nearly a quarter of TT Electronics shares, having previously tried to wade in with a counter bid.
DBay later withdrew its bid interest but said it would still vote against the Cicor deal.
TT Electronics said in October it had agreed a 155p-a-share takeover by Cicor but, soon after, asset management firm DBay said it would vote against the deal, claiming it was “happy with the progress” TT Electronics was making.
Woking-based TT Electronics criticised DBay, claiming it had a “different agenda” in its decision not to back the sale, disclosing that DBay had madethree takeover approaches for the firm in the past three months.
TT Electronics engineers and manufactures products to support sectors from healthcare to aerospace, and has counted customers including BAE Systems andThales.
The company, which has factories in the UK, North America and Asia, saw the sudden departure of former chief executive, Peter France, in April, and alsowarned about the impact of US tariffs on profits, which it said at the time risked affecting its ability to keep operating.
It had also previously described difficulties in its US branch, with slumping demand for the components it produces and ongoing production issues at itsfactories.
Full-year results in March showed widened pre-tax losses of £36.7 million against £33.4 million losses the previous year.
On an underlying basis, it said operating profits grew 2.2% to £37.2 million, but revenues fell 2.7%.
It has launched a cost-cutting programme, which it said will help deliver net benefits of £3 million in 2026.
The group said it remains on track for group underlying earnings of between £32.6 million and £38.5 million in 2026.
Eric Lakin, chief executive of TT Electronics, said: “We are making good progress against our strategic priorities and the business is in a meaningfully stronger position than it was a year ago.
“While we are mindful of near-term uncertainty in some end markets, we are encouraged by the continued strength in aerospace and defence and the progress we are making operationally.”
