StockMarketWire.com - Engineered electronics provider TT Electronics said its revenue had fallen 14% in the first five months of the year on an organic basis due to Covid-19 disruptions.

The company said it had operated at lower capacity in April and May as a result of the temporary closure of sites in Mexico, Malaysia, Barbados and Tunisia, combined with employee shielding and self-isolation.

'The overall situation is now improving as government restrictions ease, with all TT facilities open, and the number of employees in self-isolation reducing,' the company said.

Revenue in the first quarter on an organic basis fell 11%, and 14% through May, reflecting both reduced economic and industrial output globally and the direct impact of Covid-19 related restrictions.

TT Electronics said the peak of the disruption was experienced in April and some sequential recovery in revenue was already evident in May.

Its order book at the end of May remained broadly in line with the prior year on a like-for-like basis.

'TT entered this unprecedented period with a strong balance sheet and significant liquidity,' the company said.

'The group has preserved this position with actions in the past two months to reduce costs and protect cash flows.'

'We are now progressing the self-help projects announced at our full year results in March 2020 and have expanded them to take account of the reduction in demand.'

In total the cash cost of these projects is expected to be circa £18m, comprising restructuring costs and capital expenditure, of which approximately half is expected to be spent in 2020.'

'Full year run rate benefits from these projects will be £11-12m in 2023, with initial benefits in 2020 and 2021 helping to mitigate the demand slowdown in certain end markets and protect the group's margin improvement plans.'

The integration of the newly acquired power supply business in Covina, California into TT Power Solutions North America had now been completed.



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