Shares in TT Electronics PLC (LSE:TTG) jumped nearly 8% after the provider of engineered electronics for performance critical applications announced robust current trading with continuing strong demand and an unchanged outlook for this year.
“Whilst macroeconomic conditions remain uncertain, the year has started well, with continued growth in our end markets, and good execution against the well-documented challenges," the company said in a trading update released ahead of today’s AGM.
“Accordingly, management's outlook for the year as a whole is unchanged.”
Order intake continues “well ahead” of revenue with book to bill for the four months to end-April 2022 running at 151%, it added.
Revenue grew 6% in the first four months compared with last year at constant currencies and was 5% higher on an organic basis
The company said it is managing challenges relating to Covid-19 and supply chain disruption. Its Power and Connectivity facility in Dongguan in China was temporarily closed during the first four months of the year, but the larger GMS facility in Suzhou, near Shanghai, has remained open.
Net debt at end-June this year is expected to be higher than at the end of 2021 following investment in inventory to support growth in the current climate of demand and supply chain constraints, but should fall to more normalised levels by the year-end, the company noted.
Shares were 7.80% higher at 190.37p in midmorning trading.