Sensor and electronic component technology group TT Electronics (LON:TTG) has resumed dividends after reporting a first half ahead of management expectations. The move was enough to trigger a 17% rise in the company's share prices to leave it trading at 134.75p. The group reported a profit before tax and exceptionals of £9.3m, turning around a previous first-half loss of £3.8m. Revenue from continuing operations increased by 23% to £280.7m, up 27% at constant currency.
Elsewhere, headline earnings per share for the six months to June 30 was 4.0p, compared with a 2009 loss of 3.0p. Dividend payments were restarted with an interim payout of 0.8p. TT's reported profit before tax was £13.8m, against a previous loss of £14.4m. During the period, the company completed the disposal of four businesses from its General Industrial division, with net proceeds coming in at £6.5m. Net debt was reduced to £44.6m from the December figure of £56.9m, with a new committed £70m club facility to May 2013 and total available facilities of more than £110m.
CEO Geraint Anderson said: "With the majority of restructuring complete we are focused on the continued delivery of operational improvements in customer focus, product innovation and manufacturing to sustain growth over the medium and long term. The increase in the group's revenue and the benefits of the restructuring implemented over the last 18 months have improved operating margins which, together with the continued reduction in the group's net debt, mean that we are able to resume payment of a dividend. The sales momentum that started in the final quarter of 2009 in the majority of our markets has continued in the first half of 2010. The outlook for the second half of the year is positive although some uncertainty remains, particularly around macro-economic conditions."
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