LONDON TT Electronics plc has increased group revenue by 7.9 percent to £292.0 million (about $ 538.3million) for the six months to June 30,2008 and operating profit was £17.2 million (about $ 31.7million) compared to £18.9 million (about $ 34.8million) in 2007.
In April 2008 the group acquired New Chapel Electronics Ltd., a manufacturer of wiring harnesses and connectors for the aerospace and military industries for an initial cash consideration of £4.2 million (about $ 7.7million).
Earlier this month it acquired assets comprising the majority of the business of Semelab Ltd., a manufacturer of specialized radio frequency and power semiconductors, optoelectronic components and power microcircuits and modules. primarily for the U.K. and European markets.
At the beginning of August 2008, a new management team joined the board of TT Electronics. Geraint Anderson is now group chief executive having spent the last nine years with Cisco Systems Inc and before then as managing director of the Communications Division of Prysmian (formerly Pirelli) SpA. Shatish Dasani has joined as group finance director from De La Rue plc. This follows the retirement of Roderick Weaver who had held the position for 12 years.
In September, David Crowe will retire as a Director of TT electronics. He has been involved in the business for 20 years, initially as the group's Legal Counsel and joined the board as an executive director in 1992 and since 2000 he has continued as a non-executive Director.
The company says the rise in revenue due to continued growth of the electronic manufacturing services business, especially in China, and the secure power business in Mexico and the U.K. There was also a favourable benefit from the translation of Euro-denominated sales, particularly in the sensors and electronic systems division.
Operating profit reduced in the period but, says the company, was resilient given the generally deteriorating trading conditions in the U.S. and European markets, higher energy and commodity material costs and the effects of the industrial action at a parts supplier in the U.S. which halted production at some plants for much of March, April and May and reduced production by over 300,000 vehicles.
Ongoing redundancy costs were also charged in the first half at a number of businesses and we will continue to move production to lower cost countries and manage our labour cost as tightly as possible. The group is continuing to transfer manufacturing from high cost economies to our factories in China, Malaysia and India.