Electronics manufacturer to undergo £18m restructure following lockdown revenue drop

A UK electronics manufacturing company has today reported an £18m investment in restructuring following a lockdown drop in revenue.

TT Electronics, which manufactures electronic components, saw an 11 per cent dip in revenue following the impact of the UK’s lockdown, despite being able to remain “largely operational” throughout the period due to its status as a an essential business.

The company said that it operated at lower capacity due to the temporary closure of sites overseas.

The peak of disruption to its operations was in April, with a 21 per cent organic reduction in revenues, with “some sequential recovery” being seen in May.

TT said that it is taking actions to reduce costs and protect cash flows, which will cost £18m in restructuring costs and capital expenditure, but will save approximately £11m yearly by 2023.

Richard Tyson, CEO of TT Electronics, commented: “TT has responded quickly and effectively to manage the COVID-related disruption to our business and continue supplying our customers.

“Our strategy to reposition the group over the last five years has improved the group’s resilience.

“This, coupled with our early action on costs and cash flow, has enabled us to retain a strong financial position, and to progress our self-help projects which will improve efficiency, reduce costs and help protect our margin improvement plans.

“TT is in robust shape and well placed to pursue the opportunities that are presenting themselves and to create value for all of our stakeholders.”