TT Electronics has reported a decline in sales as ongoing challenges in a key market persist, while the company proceeds with a boardroom overhaul following the collapse of a £287 million takeover bid. The British manufacturer, which engineers and produces electronics for sectors including healthcare and aerospace, said group sales fell by 4.8% in the four months to the end of April. This decline was driven by difficulties in the electronics manufacturing services market, where customer caution amid broader global economic uncertainty has dampened demand.
Board Changes Amid Takeover Fallout
The company’s new chairman, Phil Swash, is set to assume leadership of the board on Friday during the firm’s annual general meeting for shareholders, marking a key step in the boardroom reshuffle. This follows the collapse of a proposed £287 million takeover by Swiss electronics group Cicor Technologies, which fell apart earlier this year after shareholders voted against the deal. TT Chairman Warren Tucker had previously announced plans to step down after serving two three-year terms, while the chief financial officer and two non-executive directors are also departing.
Leadership Transition
Ian Ashton will join TT on June 29 to replace outgoing Chief Financial Officer Richard Webb, who will remain in the role until after Ashton’s arrival to ensure a smooth transition. The ill-fated takeover was plagued by complications, including an attempted counterbid from DBay Advisors, which holds nearly a quarter of TT Electronics shares. DBay later withdrew its bid but still voted against the Cicor deal.
Market Challenges and Strategic Response
TT Electronics, headquartered in Woking, criticized DBay for having a “different agenda” after the asset management firm declined to support the sale, revealing that DBay had made three takeover approaches in the past three months. The company engineers and manufactures products for industries ranging from healthcare to aerospace, counting BAE Systems and Thales among its clients. With factories in the UK, North America, and Asia, TT Electronics saw the sudden departure of former Chief Executive Peter France in April and warned about the impact of US tariffs on profits, which it said could affect its ability to continue operations. The company had also previously highlighted difficulties in its US operations, including slumping demand for components and ongoing production issues at its factories.
Financial Performance and Outlook
Full-year results for March showed widened pre-tax losses of £36.7 million, compared to £33.4 million losses the previous year. On an underlying basis, operating profits grew 2.2% to £37.2 million, but revenues fell 2.7%. The company has launched a cost-cutting programme expected to deliver net benefits of £3 million in 2026. TT Electronics stated 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, commented: “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.”
