Shares in TT Electronics (LON:TTG) soared more than 16% after the electronics engineer said its first-half operating profit grew more than a third and that its prospects for the remainder of the year looked good.
The manufacturer of electronic components and provider of manufacturing services reported a 34% uplift in operating profit to £14.6mln on revenue 8% higher at £194.2mln in the six months to the end of June. It also hiked the interim dividend to 1.95p from 1.75p.
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"These results demonstrate that the company is building real momentum. Book-to-bill over 1.0 suggests the second half will generate further growth in sales and profits. The Stadium and Precision acquisitions are integrating well whilst the increased investment in R&D (5.2% of sales) supports growth and its drive into higher technology capabilities,” Numis analysts said in a note to clients.
TT Electrics said its strategic move to position itself in growth markets benefiting from increasing electrification, which had resulted in the business delivering higher growth and improved margins.
“Our recent acquisitions have added more design-led product solutions, whilst providing a new growth dimension focused on connected devices and the Internet of Things,” TT Electronics CEO Richard Tyson said.
“We continue to look for further opportunities to add to our portfolio. Our first half performance and order momentum give us confidence of progress for the full year ahead of our prior expectations."
Shares in TT Electronics were 16.4% up at 256p in early afternoon trade.